LAW 724 Chapter Notes - Chapter 2: Precautionary Principle, Dispute Settlement Body, Free-Trade Area

• School: Ryerson University
• Department: Law and Business
• Course: LAW 724
• Professor: Alyssa Brierley

Document Summary

Gatt and wto do not mandate free trade. International agreements that provide free trade and prevent trade discrimination. Two main roles of the gatt: develop a code of rules governing trade relations, provide a forum where countries could discuss trade problems and trade- related issues. Fundamental rules developed by gatt: tariff/binding concession rule, tariff/binding concession a country that lowers a tariff is bound and cannot be raised. Binding concession rule: what goes down will not come up: mfn rule: - requires tariffs to be applied equally to all member countries, most favored nation rule. Any tariff negotiated between two member countries would be applied to all. ==principles of non-discrimination and reciprocity foundation of gatt: any negotiation should be available to all member. 1)generalized system of preference: acceptance of free trade areas/ customs union(pg-25, free trade area arrangement among 2+ countries that agree to remove all duties/ restrictions of commerce among them (example: nafta: canada, us,