National treatment
WTO principle prohibiting discrimination between imported products and similar domestic products once customs duties have been paid.
Core principle
National treatment is one of the two pillars of non-discrimination in the WTO system (alongside the MFN principle). Enshrined in GATT Article III, it requires that imported products, once cleared through customs, are not treated less favourably than similar products of domestic origin.
Scope
National treatment applies to:
- Internal taxation: internal taxes and charges may not discriminate against imported products (GATT Article III:2)
- Internal regulation: laws, regulations, and requirements may not favour domestic products (GATT Article III:4)
- Public procurement is in principle excluded (Article III:8), but the WTO Government Procurement Agreement (GPA) extends non-discrimination to signatories
WTO jurisprudence
The principle has been interpreted in numerous landmark cases:
- Japan — Alcoholic Beverages (1996): the higher tax on imported vodka compared to shochu violated Article III
- EC — Asbestos (2001): clarification of the concept of "like products"
Practical implications
Importing operators should ensure their products do not face regulatory or fiscal discrimination once on the market. In case of discriminatory treatment, recourse may be through national authorities or, at state level, through the WTO dispute settlement mechanism.