Article XXIV
Quick Summary
Article XXIV of the General Agreement on Tariffs and Trade (GATT) outlines the conditions under which countries can form regional trade agreements, such as customs unions or free-trade associations, without violating their broader trade commitments. These agreements allow member countries to grant preferential trade treatment to each other.1
Key provisions of Article XXIV include:
* Elimination of duties and trade restrictions on "substantially all the trade" among participants.1
* Internal barriers must be removed "within a reasonable length of time," typically within 10 years.1
* Duties and trade barriers for nonmember countries should not become higher or more restrictive than before the agreement.1
These rules aim to ensure that regional arrangements promote trade creation rather than trade diversion, benefiting both member and nonmember countries. GATT, which was later replaced by the World Trade Organization (WTO), was a significant force in global trade liberalization.123
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