National Treatment – UPSC Prelims

What is National treatment?
  • It means treating foreigners and locals equally.
  • Imported and locally-produced goods should be treated equally, at least after the foreign goods have entered the market.
  • The same should apply to foreign and domestic services, and to foreign and local trademarks, copyrights and patents.
  • This principle of “national treatment” is also found in all the three main WTO agreements (Article 3 of GATT, Article 17 of GATS and Article 3 of TRIPS).
  • National treatment only applies once a product, service or item of 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.
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