General Agreement on Tariffs and Trade and Rwanda

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The General Agreement on Tariffs and Trade (GATT) 1947 functioned as a means of adjusting trade relationships between countries trying to improve their economies. Contracting parties to this agreement have been bound by it to treat other contracting parties on an equal and reciprocal basis as well as to curb protectionism. At the start of 1995, the GATT has been succeeded by the World Trade Organization (WTO) and has since been the most important development in international trade. However, it is still essential to note that the GATT as amended is still the central piece of the WTO law . A Dispute Settlement Body (DSB) has been set up under Article IV of WTO Agreement and the Understanding on Rules and Procedures Governing the…show more content…
This principle is set out in Article III (1) GATT 1994 where it states that contracting parties recognize that internal taxes and other internal charges and laws, regulations which affects the internal sale, offering for sale, purchase, transportation, distribution or use of products, and internal quantitative regulations requiring the mixture, processing or use of products in specified amounts or proportions, should not be applied to imported or domestic products so as to afford protection to domestic production . Case referred to would be the Gasoline case . In this case, Rwanda may claim that the act of Australia forbidding their exports of coffee and timber from entering the Australian market is an act which breaches Article III GATT 1994. This is because this prohibition does not amount to the treatment of the nationals and products of another country the same way it treats the domestic nationals and products . In addition there is also a breach in Article III (1) GATT 1994 as the Australian government has imposed laws and regulations on the coffee and timber of Rwanda which subsequently affects the offering of sale as well as the distribution or use of those products . Next, Rwanda could claim according to Article XI GATT 1994. It is stated that non-discrimination among contracting parties is required in administering quantitative
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