Free Trade Agreements and the WTO Exceptions

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World Trade Organization (WTO) Members must grant immediate and unconditional most-favored-nation (MFN) treatment to the products of other Members with respect to tariffs and other trade matters. Free trade agreements (FTA) are facially inconsistent with this obligation because they grant countries who are party to the agreement the ability to receive more favorable trade benefits than those extended to other trading partners. Due to the prevailing view that such arrangements are trade enhancing, Article XXIV of the General Agreement on Tariffs and Trade (GATT) contains a specific exception for FTAs. The growing number of regional trade agreements, however, has made … continued below

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6 Pages.

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Grimmett, Jeanne J. & Tatelman, Todd B. September 22, 2004.

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This report is part of the collection entitled: Congressional Research Service Reports and was provided by the UNT Libraries Government Documents Department to the UNT Digital Library, a digital repository hosted by the UNT Libraries. It has been viewed 900 times, with 7 in the last month. More information about this report can be viewed below.

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World Trade Organization (WTO) Members must grant immediate and unconditional most-favored-nation (MFN) treatment to the products of other Members with respect to tariffs and other trade matters. Free trade agreements (FTA) are facially inconsistent with this obligation because they grant countries who are party to the agreement the ability to receive more favorable trade benefits than those extended to other trading partners. Due to the prevailing view that such arrangements are trade enhancing, Article XXIV of the General Agreement on Tariffs and Trade (GATT) contains a specific exception for FTAs. The growing number of regional trade agreements, however, has made it difficult for the WTO to efficiently monitor the consistency of FTAs with the provided exemption. This report examines this issue.

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6 Pages.

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Congressional Research Service Reports

The Congressional Research Service (CRS) is the public policy research arm of Congress. This legislative branch agency works exclusively for Members of Congress, their committees and their staff. This collection includes CRS reports from the mid-1960's through 2018—covering a variety of topics from agriculture to foreign policy to welfare.

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  • September 22, 2004

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  • Feb. 24, 2006, 12:27 p.m.

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  • Sept. 21, 2017, 4:12 p.m.

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Grimmett, Jeanne J. & Tatelman, Todd B. Free Trade Agreements and the WTO Exceptions, report, September 22, 2004; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metacrs8208/: accessed June 10, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.

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