Preferential Arrangement

Preferential Arrangement

Preferential Arrangement and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Preferential Arrangement: A group of countries that grant each other special trade advantages, such as preferential tariff rates, in order to promote member countries' export growth. Special licensing practices, quotas, or preferential application of taxes and other measures are sometimes granted. Many such arrangements are non-reciprocal, in which beneficiary members –usually LDCs –are accorded preferential access to markets of preference-granting countries without making similar market access commitments themselves. Because preferential arrangements violate the most favored-nation principle, a waiver is required for establishing any such arrangement in which GATT members participate.


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