Question

1) What is meant by “national treatment?” To whom does it apply? 2) What is a “common external tariff?” What problem does it solve? 3) What is the “big” change as we go from a customs union to a common market? Why is this a “big” change, or is it really “big”?

Answer 1

1) national treatment is a principle in international law. It is utilised in case of many regimes involving trade and intellectual property. It requires equal treatment of locals and foreigners. Under national treatment, a state that grants particular rights, benefits or previlages to its own citizens must also grant those advantages to the citizens of other states while they are in that country. National treatment only applies once a product , service or intellectual property has entered the market. therefore charging customs duty on an import is not a violation of national treatment even if locally produced products are not charged an equivalent tax.

It is applied to both foreigners as well as locals who are in trade in a particular country.