Agreement Meaning In Trade

A clause on “national treatment of non-tariff restrictions” is needed, as most tariff characteristics can be easily duplicated with a set of non-tariff restrictions designed accordingly. These may include discriminatory rules, selective consumption or turnover taxes, specific “health” requirements, quotas, “voluntary” import restrictions, special licensing requirements, etc., not to mention any total ban. Instead of trying to list and prohibit all kinds of non-tariff restrictions, the signatories of an agreement ask for treatment similar to that accorded to products of the same type (e.g. steel.B. manufactured in the domestic market. As soon as the agreements go beyond the regional level, they need help. The World Trade Organization is intervening on this point.

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