Most favoured nation treatment

The GSP rate is half of the MFN rates and subject to tariff quotas.

Developing countries that have been enjoying non reciprocal preferential market access have called for adequately addressing the erosion of preferences arising from the most favoured nation tariff reduction.

For some products, preferences are granted under the GSP and LDC schemes.

Japan has MFN, preferential and temporary tariffs on fresh and processed vegetables.

In addition, a number of developing countries also have agreed to provide GSP benefits to least developed countries.

Moreover, the impact of the Uruguay Round apos s MFN tariff reduction on preference margins would not be uniform in all preference receiving countries.

The number of factories is expected to increase sharply after the granting of Most Favoured Nation and GSP (Generalized System of Preferences) status by the United States.

MFN exemption review

Grant Arab investors most favoured nation treatment.

31. Recent preferential actions in favour of least developed countries, including through improvements in generalized system of preference (GSP) schemes, were recounted.

He observed that the EU was providing 60 per cent of the LDCs apos preferential export markets.

Under the GSP scheme of Japan, GSP rates on various agricultural and fishery products have been reduced to maintain the preferential margin following the MFN tariff cuts of the Uruguay Round MFN tariff reductions.

EU s GSP benefits for clothing and textile products are generally limited to a 15 per cent margin of the MFN rates and subject to several country sector limitations.

MFN duties remain relevant, as GSP benefits are limited in this sector.

They should be focused to provide benefits to those developing countries which need them most, taking into account the need to identify criteria that preference giving countries may wish to adopt.

(iii) The most economically advanced developing countries should consider providing trade preferences to LDCs.

(d) The improvement and renewal, by preference giving countries, of their generalized system of preference schemes with the objective of integrating developing countries, especially the least developed countries, into the international trading system and of finding ways and means to ensure more effective utilization of generalized system of preference schemes, and in this context reiterates its original principles, namely, non discrimination, universality, burden sharing and non reciprocity

In the US, footwear and leather products are excluded from the coverage of the scheme, so that MFN tariffs apply fully to developing countries.

This should include individual trade flows by partner countries under the MFN, GSP and LDC rates, preferential trade within free trade agreements, customs unions or other preferential arrangements, trade under outward processing regimes, and autonomous tariff rates.

Recent estimates indicate losses for preference dependent countries.

It had recently decided to extend the most favourable market access conditions, which had previously been available only to the European Union s Lomé Convention partners, to all the least developed countries, with effect from 1 January 1998.

33. It was stressed that trade preferences such as the GSP are mutually beneficial to preference giving and preference receiving countries.

In the US, MFN rates apply for most products, even for developing countries, as most of them are not covered by the GSP.

Preferential tariff rates offered under the GSP reduce the incidence of MFN peak tariffs for developing countries, in particular for LDCs, which enjoy special treatment (often in the form of duty free access) provided, of course, the products affected by peak tariffs are covered under the GSP.

3. Ways and means of enhancing the utilization of trade preferences by developing countries, in particular LDCs, as well as further ways of expanding preferences

At the same time, attention needs to be given to improving and enhancing existing preferential schemes for concerned countries, as well as improving market access conditions on a most favoured nation basis.

In this regard, he noted with satisfaction that the benefits and privileges of the OECD instruments would be extended to third countries on a most favoured nation basis.

In the recent MFN review, responses showed that many MFN exemptions were considered necessary because of regional and bilateral investment, labour and other agreements that Members had entered into.

Consequently, LDCs continue to face many MFN peak duties for their major industrial exports.

MFN tariff rate shall be applied to imported goods originated from other WTO members who are applicable to MFN treatment in a collective manner, to imported goods originated from countries or regions with which the People's Republic of China has signed bilateral trade agreements containing provisions of granting mutual MFN status, and to imported goods originated from within the People's Republic of China.

In their schedules of concessions many of the members grant more favourable access conditions to LDCs on a non reciprocal basis.

The tariff data now integrate the current tariff situation in these countries in 1996 1997 with respect to most favoured nation (MFN) and GSP rates, and, to the extent possible, suspended MFN rates, as well as the agreed rates resulting from the Uruguay Round negotiations.

The Generalized System of Preferences (GSP) remains a major instrument for further improving market access of developing countries there is scope and need for further improvement of the GSP, especially for the least developed countries.

Our country will reduce the MFN tariff rate for some goods from November 1, and the general tariff level will be reduced to 7.5 .

The issue has been controversial, as agriculture exporting developing countries hold the view that addressing preference erosion might impede efforts aimed at most favoured nation tariff reduction.

Due to the application of a more favourable GSP treatment, the post Uruguay Round position of the least developed countries (LDCs) will be more favourable than that of developing countries in general.

28. Preferential treatment should be given to the exports of developing countries, with special attention being paid to the situation of the least developed countries.

High MFN rates for these staple food products are often combined with country specific special measures.

As a result of the undertaking made by the head of the Political Department, the United Nations has been granted the benefit of the most favoured organization clause' and was thus authorized to demand the most favourable treatment that may be granted to another organization .

62. Moreover, although least developed countries enjoy duty free or MFN treatment in many OECD countries, especially for many tropical products, their industrial products such as textiles, clothing, footwear and leather products are still excluded from GSP benefits and hence are subject to tariffs of up to 30 per cent in some OECD markets.

60. The main markets for least developed countries are OECD countries, and within OECD the EU countries.44 Indeed, least developed countries have been benefiting from the OECD countries Generalized System of Preferences (GSP) for some time.

Opinions differ on the scope of the MFN exemption review.

In 1997, the US extended the product coverage of its GSP in favour of LDCs.

What is the experience with the application of clauses covering pre investment (admission) through national treatment or most favoured nation treatment?