3_MFN

-> to check if a country is unfairly giving better trade treatment to some countries but not to others OR you use it to check whether a country is treating WTO members equally when it gives trade advantages (like lower tariffs or easier market access)

1. Is the measure covered by Article I:1?

2. Does the measure grant an “advantage”?

3. Are the products concerned “like products”?

4. Is the advantage at issue accorded “immediately and unconditionally” to all like products concerned, irrespective of their origination or destination?

🔧 Main Types of Trade Remedies (WTO)

1. Anti-Dumping Duties → When foreign goods are sold below fair value (dumping) → Purpose: Offset unfair pricing

2. Countervailing Duties → When imports are subsidized by foreign governments → Purpose: Neutralize unfair advantages

3. Safeguard Measures → Temporary protection from sudden import spikes/jumps, even if trade is fair → Purpose: Allow local industries time to adjust

The Lomé Waiver was a temporary exception (starting in 1975) granted by the WTO that allowed the European Union (then the European Communities) to give preferential trade treatment to products from ACP countries (Africa, Caribbean, Pacific) without extending the same benefits to all WTO members, which would normally violate the Most-Favored-Nation (MFN) principle.

CET = common external tariff

custom unions examples:

• EU

• EU-Turkey

• EU-Andorra

• EU-San Marino

• East Africa Community

CETA (Comprehensive Economic and Trade Agreement) is a Free Trade Agreement (FTA) between the European Union and Canada. In WTO terms, it is an exception to the Most-Favored-Nation (MFN) principle, which normally requires that trade advantages given to one WTO member must be given to all others.

CETA eliminates most tariffs between the EU and Canada, but both keep their own external tariffs toward other countries. Therefore, CETA is not a customs union, and rules of origin are needed to ensure that only EU and Canadian goods benefit from the agreement.

In the CETA agreement between the EU and Canada, rules of origin often require one of the following (not both):

1. Tariff Shift Rule → A product made from non-originating (e.g., non-EU) materials must undergo processing that changes its tariff classification (i.e., it gets a new customs code)

2. Value-Added Rule → Alternatively, the product must have at least 50% of its value created within the EU (or Canada, depending on direction of trade)