HISTORY GATT (General Agreement on Tariffs and Trade)

This task is submitted to an international trade course

Compiled by:

Mohammed Kobul A 10080056

HIGH SCHOOL ECONOMIC

BANDUNG, Indonesia

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 2010

TRADE LAW RULES BY GATT

A. Introduction

One of the important sources of law in law international trade is the General Agreement

on Tariffs and Trade (General Agreement on Tariff and Tradeor GATT). The load in it is not

only important in regulating trade policies between countries but also in its early stages also

certain rules regarding the rules of trade between entrepreneurs. This last example is the

arrangement of counterfeit goods or customs. GATT was formed in October 1947. The birth of

the WTO on year 1994 brought two significant changes to the GATT.

First, the WTO took over the GATT and make it one attachment WTO rules. Second, the GATT

principles into a framework rules for new areas in the WTO agreements, particularly Agreement

on Services (GATS), investment (TRIMs), and also in the Agreement on Trade-related

Intellectual Property Rights (TRIPs).

The objective of GATT is to creating a climate international trade in safe and clear for the

community business, and to create trade liberalization sustainable jobs and a healthy trading

environment. To achieve this goal, the international trade system GATT sought is a system that

can enhance growth and economic development throughout the world.

The main purpose of GATT can be clearly visible on preambulenya. In essence there are

four important goal to be achieved

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GATT:

1) Improve the living standards of humanity

2) Increase employment opportunities;

3) Increase the utilization of the natural wealth of the world; and

4) Increase the production and exchange of goods.

There are three main functions of the GATT in achieving its goals:

First, as a device regulations (rules) that govern multilateral trade transactions carried out by

GATT member countries by providing a set of trade regulations (the 'rules of the road' for

trade).

Second, as a forum (container) trade negotiations. Here strived for trade practices could be

freed from the obstacles that interfere with (trade liberalization). In addition, the GATT sought

to rule or trade practice so it becomes clear (predictable) either through the opening of national

markets or through the adoption and dissemination of the implementation of the rules. In such

negotiations, decisions about important material, especially concerning the provisions or the

articles of GATT, the decision was made based on a simple majority (Article XXV). But in

general, such decisions were taken without having to follow a way of making a formal verdict:

generally decisions are taken by consensus. Since its inception, GATT has sponsored a variety of

major negotiations / subject which is usually referred to by the term lap (Rounds). The purpose

of this round of negotiation aimed to accelerate liberalization

international trade. Round of trade negotiations has advantages as follows:

First, trade negotiations allow the parties in together to solve trade problems

ample.
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Second, the parties will be easier to discuss komitmenkomitmen trade in a round of negotiations

rather than discuss it in bilateral scope;

Third, developing countries and countries less advanced will have more opportunities in the

wider discuss the multilateral trading system within the scope of a negotiations and will be more

profitable countries developed than when they negotiate directly with developed countries; and

Fourth, in the negotiating sector of world trade sensitive, discussions or negotiations will be

relative to more easily within the context of a global nature forum. For example is the discussion

of agricultural issues in the Uruguay negotiations.

Round-the first round of GATT in general focused on efforts to reduce tariffs. Rate

reduction is already underway since the establishment of GATT in 1947.

Since the year 1947, round that have been implemented are the Geneva Round (1947 - followed

by 23 countries); Round Annecy, France (1947-13 state); Torque Round-Britain (1951 - 38

countries); Geneva Round (1956 - 26 countries); round of Geneva or the Dillon Round (1960-61

– 26 state). The process of trade liberalization continues in subsequent rounds, the Kennedy

Round (1964-67 followed by 62 countries to discuss rates and special antidumping), Tokyo

Round (1973-1979, followed by 102 countries) and Uruguay Round (1986 - 1994 followed by

123 countries). Tokyo Round (1973 - 1979) can also be regarded as The most important rounds

before the Uruguay Round. Tokyo Round viewed as a 'first experiment' which seeks reforming

the international trading system.

Like most GATT trade rounds earlier, the Tokyo Round aims to continue to progressively

reduce tariffs. At the end of negotiations, countries agreed to cut one third of tariff rates

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prevailing at that time. Tokyo Round failed and some agreement. Failures they experienced,

among others, did not reach an agreement the countries on issues which are hindering the

agricultural sector and the failure to make the formulation of rules on 'safeguards', (security

measures). The success of the Tokyo Round is worth noting among other things

the achievement of a series of agreements the rules of GATT, and the success achieved nine

other agreements namely:

1) Subsidies and retaliatory measures (subsidies and countervalling measures), which is an

agreement which interpret Article VI, XVI and XXIII of GATT;

2) Technical barriers to trade (technical barrier to trade), whichsometimes also referred to

as 'Standard Code');

3) Import licensing procedures;

4) Agreement on government procurement of goods and services

(Government Procurement);

5) Estimation of Customs (Customs Valuation), which interprets Article VII of GATT;

6) Anti-dumping, which interpret Article VI and replacing the Kennedy Round Anti-

Dumping Code;

7) Settings on processed meat (bovine MeatArrangement);

8) Trade in civil aircraft (Trade in Civil Aircraft).

At the time of Tokyo completed lap, only a few countries

which binds itself to treaties or agreements are the result of the Tokyo round. That was mostly

developed countries alone.

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In the Uruguay round, a portion of the above agreement has been amended and extended

discussion. Kesepakatankesepakatan on subsidies and countervailing measures, technical

barriers to trade, import licensing, customs valuation and anti-dumping agreement has now been

absorbed into the WTO commitments. This means that all WTO member countries would not

submit and be bound to any agreement or treaty. While agreement on the procurement of goods

for the government (government procurement),bovine meat,dairy products and civil aircraft still

remain under the agreement 'plurilateral' that are open to WTO member countries to submit or

not (voluntarily) on the agreements that these latter.

Function third GATT is as a 'court' where the members settle international trade disputes with

other GATT members. The function of this dispute are important and interesting arrangements

have evolved. It has been stated above, only the original GATT agreement on rules international

trade. GATT is not equipped with a special institution or specialized entity specific rules

concerning multilateral trade dispute settlement.

B. History of GATT

GATT was formed as a base (or container), which is temporary after World War II. At

that time the international community will arise awareness of the need for a multilateral

institution in addition to the World Bank and IMF. The need for the existence of a special

multilateral institutions at that time was felt right. At that time the international community find

it difficult to reach agreement on the reduction and elimination of quantitative restrictions and

trade discrimination. This is done to prevent recurrence of the practice of protectionism take

place in the 1930's that hit the world economy. As mentioned earlier, at the time of its formation,

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the countries that first became a member of the 23 countries. To-23 are also making and

designing Charter International Trade Organization (International Trade Organization), which at

that time planned as a UN specialized agency. The Charter is intended not only to provide the

provisions or the rules in world trade but also make decisions regarding employment

(employment), commodity agreements, restrictive practices (restriction) of trade, international

investment and services.

Seedling establishment of GATT's history actually begins from the time of the signing of

the Charter of the Atlantic (Atlantic Charter) in August 1941. One of the objectives of this

charter is to create a world trading system based onnon-discrimination and freedom of exchange

of goods and services. With this purpose, a series of discussions and negotiations have taken

place between the years 1943-1944, particularly between the United States, Britain and Canada.

On 6 December, the United States first proposed the need for the establishment of an

International Trade Organization (ITO). The purpose of this organization, according to the U.S.

version on time, is to create a gradual trade liberalization, fight monopoly, expanding demand for

commodities and trade policy coordinating countries.

Proposal for the establishment of a trading organization was welcomed by the ECOSOC

(Economic and Social Council). UN specialized agency says it wants to organize a conference.

To this end, countries managed to establish a preparatory committee. Commission proceedings

take place in London from October 18 to 26 December 1946.7 The Commission had issued a

Draft Charter of London (the London Draft Charter). But the members of this meeting

participants failed to agree to ratify the Draft Charter. With the failure of this then big countries

form a drafting committee consisting of the United States, Canada, Britain, France and the

Benelux countries. The task of this commission is to find a new formula for designing a new

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trade organization. The Commission recently held a second meeting which took place in Lake

Success, New York from 20 January to 25 February 1947. The meeting discussed certain issues

or limited only. The meeting did not discuss important matters. An important meeting was held

in Geneva from month April to November 1947. From April 10 until 22 August, the committee

continued its preparations to draft the Charter of the ITO, and from April 10 to 30 October,

bilateral negotiations take place between the countries members of the commission, among

others, Brazil, Burma, Ceylon, Pakistan and Southern Rhodesia

The result of negotiations on mutual concessions (reciprocal tariff Concession) was

inducted into the GATT, signed on October 30, 1947. The result of these negotiations include

while also a codification of the relationships trade between signatory countries. Based on

protocol requirements October 30, 1947, GATT been in place since January 1, 1948, while the

enactment ITO.10 The fourth important meeting took place in Havana (21 November 1947 -

March 24, 1948). This meeting discussed the ITO Charter by delegates from 66 countries. The

meeting successfully passed Havana Charter. But until the mid-1950s, participating countries are

having difficulties to ratify. This is mainly because the United Seriakt, actor major in world

trade, in 1958, states that country would not ratify the Charter. Since itupulalah ITO effectively

become completely unavailable. Although never valid, but the lack of ratification does not cause

the GATT was no longer effective. GATT negotiators issued a new international agreement that

is the Protocol of Provisional Application, which is a protocol (agreement) which enforces the

GATT for temporary (provisional). Since the issuance of this protocol, GATT and then continue

in force today.

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 In the year 1954 - 1955, GATT text changes. There are two important changes. First, the

issuance of the change protocol section 1 and Article XXIX and XXX, and protocols that change

preambule and sections 2 and 3.

The first protocol requires acceptance by all participating countries. However, because

Uruguay does not ratify, the protocol becomes into force on January 1, 1968.

While the second protocol come into force on November 28, 1957. In 1965, the GATT received

additional new sections, namelyfourth section. This section applies a de facto dated 8February

1965 and became effective June 27, 1965. This section specifically regulate the interests of

export expansion fordeveloping countries (Article XXXVI - XXXVIII)

C. Trade provisions in the GATT.

Trade provisions that would create a multilateral trading system embodied in the GATT,

has three main provisions:

First, and most importantly is the GATT itself and the 38th chapters.

Second provision, which resulted from the Tokyo round of negotiations (Tokyo Round1973-

1979) are the provisions that include anti-dumping, subsidies and non-tariff regulations or

sectoral issues. Although membership in provisions to-2 is limited in character, which ranges

from an 30-state, however, these countries control most of world trade The third is the provision

of "multi-fiber arrangements." This provision is an exception to GATT provisions generally,

especially concerning the textile and clothing.

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D. GATT principles.

To achieve its objectives, based on 5 GATTmain principles. The principle in question is:

1. Principle of Most-Favoured-nation.

The principle of 'Most-Favoured-nation(MFN) is contained in Article I GATT. This

principle states that a trade policy should be implemented based on non-discriminatory.

According to this principle, all member states are bound to give other countries the same

treatment in the implementation and import and export policies as well as regarding other costs.

Equal treatment should be started immediately and unconditionally ('Immediately and

unconditionally') against products originating in or submitted to all members of GATT.

Therefore, any country should not give preferential treatment to other countries or take action

against discrimination. This principle appears in Article 4 agreements relating to intellectual

property rights (TRIPS) and also listed in article 2 of Agreement on Services (GATS). In short,

all countries must be treated on an equal basis and all countries enjoy the benefits of a trade

policy. However, in practice this principle, the exceptions have exceptions, particularly in

regarding the interests of developing countries. So, based on the principle that, in essence, a

member country can claim to be treated equally to imports and exports of products in other

member states. However there are some exceptions to this principle. There are some exceptions

specified in the articles of GATT itself and partly there are set forth in the decisions in GATT

conferences through a calendar (Waiver) and the principles of the GATT under Article XXV.

Exceptions are:

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(a) benefits obtained by distance traffic (traffic frontier advantage), should not be imposed

on other members of GATT (Article VI);

preferential treatment in certain areas that already exist (such as economic cooperation in

'British Commonwealth ';the French Union (French with the countries' former colonies);

and Banelux (Banelux Economic Union), still may continue to be performed but the level

(b) preference limit should not be lifted (Article I paragraph 2-4); GATT members that form

a Customs Union or Free Trade Area that meets the requirements Article XXIV does not

have to give equal treatment to other member countries. For countries that make up

optionpreference regional and bilateral preferential no meet the requirements of Article

XXIV, can form

exceptions by using the excuse 'dating' (waiver) of the GATT provisions. This calendar

can also be done or requested by

(c) a member country. According to this principle a State may, when economic or trade

conditions in difficult circumstances, can apply for exemption from certain obligations

set by the GATT.

(d) granting tariff prefensi olef developed countries to imports from developing countries or

countries that are less fortunate (least developed) through the facilitiesSystem of a

generalized Preference (System of general preferences). Another exception is what is

referred to the provisions of 'security' (safeguard rules). This exception recognizes that a

government, if it does not have another attempt, to protect or temporarily protect their

domestic industry. Settings 'safeguard'This is stipulated in Article XIX, allowing such

policies but is only used in certain circumstances. A Member State may restrict or

suspend a tariff concessions on imported products in a number (quantity) is increasing

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 and causing serious damage (serious injury) to domestic producers. In recent years, quite

a lot of members of the GATT that apply discriminatory bilateral arrangements are also

often referred to as 'voluntary export restraints' (vers). Trade policy is done to avoid one

of the issues discussed in a warm enough that the Uruguay Round of trade in textiles.

Vers is how 'smooth' the developed world to suppress State developing a general is a

producer of textiles. To limit the entry of textile products into the domestic marketplace, subtly

developed countries to developing countries expressedto export textile in certain amount. In the

case of this, the developed countries emphasized that the limitation amount purely voluntary

nature should come or berasaldari will of developing countries.

2. Principle of National Treatment.

Principle National Treatment contained in article III of GATT. According to this

principle, the product of a country that imports into a country should be treated the same way

domestic product. This principle applies widely in nature. This principle also applies to all kinds

of taxes and other levies. He shall also apply to legislation, regulation and requirements (laws)

affecting the sale, purchase, transportation, distribution or use of products in the domestic

market. This principle also provides protection against protectionism as a result of efforts or

administrative or legislative policy. Principle national treatment and principles MFN is the

central principle of comparison with other principles in the GATT. The second principle is a

principle in setting trade fields which later was born in the Uruguay round agreements. For

example, this principle contained in article 3 of the TRIPs Agreement. The second principle is

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also applied in the General Agreement on Trade in Service (GATS). In the GATS, WTO

member countries are obliged to impose the same treatment (MFN treatment) of the services or

service providers from one country to country. Nevertheless, WTO agreements allow a State to

request exemption from the application of this MFN obligation covering the efforts of certain

measures (specific measures), which was initially unable to offer such treatment. For this

purpose, when a country's request for exemption of the MFN obligation, then the request would

be reviewed every five years. Exemption from application of the MFN obligation may only be

performed for a period of 10 years. Principlenational treatment is an obligation in the GATS,

which explicitly states must apply these principles to the services or activities of specific

services. Hence the principle of national treatment or national treatment are generally the result

of negotiations or negotiations among member countries.

3. Principle of Prohibition of Restriction (Restriction) Quantitative.

The basic provisions of GATT is the prohibition of quantitative restriction which is the

biggest obstacle to the GATT. Quantitative restrictions on exports or imports of any kind (eg

import or export quotas, restriction of the use of import or export licenses, supervision of

payment products imported or exported), is generally prohibited (Article IX). This is because

such practices interfere with normal commercial practice. Quantitative restrictions today are not

so widespread in developed countries. However, textiles, metals, and certain products, which

came mostly from developing countries are often exposed to these obstacles. However, in

practice, it can be done in terms of:

first, to prevent depletion of essential products in the exporting country;

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second, to protect the article in the country, especially concerning the agricultural and fishery

products;

third, to secure, based onescape clause (Article XIX), increased import of excessive (increase is

of Imports) on the

country in an effort to protect, for example, threatened domestic production.

fourth, to protect the balance of payments (foreign policy) (Article XII).

Despite this restriction should not be applied beyond those necessary to protect the balance of

payments. It was a progressive restriction should be reduced and even eliminated if not needed

again. With the recognition as set forth in Article XVII, an exception has been extended in

developing countries. In this country to impose quantitative restrictions to prevent the depletion

of foreign exchange (foreign exchange) they are caused by the existence of demand for imports

necessary for the payment or because they are establishing or expanding production in the

country. For purposes of these countries, GATT menyelenggararakan held regular consultations

with the countries that proposed import restriction to protect the balance of payments. According

to Article XIII, this quantitative restriction, though allowed, should not be applied in a

discriminatory.

4. The principle of protection through tariffs.

In principle, GATT only allow protection measures against domestic industries through

tariffs (import duties raise the tariff rates) and not through the efforts of other trade (commercial

non-tariff measures). Protection through tariff clearly indicates the level of protection provided

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and still allow for competition policy to regulate the entry of sehatSebagai export goods from

abroad, the imposition of tariffs is still allowed in the GATT. GATT countries are generally

much use in this way to protect their domestic industry and also to attract income for the country

concerned. Although allowed, use these rates remain subject to the provisions of GATT. For

example, the imposition or application of these rates should not be discriminatory in nature and

subject to the pricing commitments to the GATT / WTO. The commitment of this tariff means

the tariff rate of a State against a particular product. These tariff rates become the country's

commitment binding. Therefore, a country which has stated its commitment to a tariff, he does

not can arbitrarily raise the level of tariffs which he has agreed, unless followed by negotiations

about the granting of compensation to its trading partners (Article XXVII).

It should be noted here that the tariff negotiations between the countries is one of the

work of GATT (which also now be continued by the WTO). The purpose of the GATT in this

regard is the attempt to reduce tariff rates to a point or a level as low.

When the GATT was formed in 1948 until the adoption of the Uruguay Round agreement, which

applied tariff rates countries has come down quite sharply. From an average of 38% in 1948, in

1994 has fallen to about 4% only. InUruguay Round, countries' commitments to greater market

access is achieved, inter alia, throughinterest rate cuts made by more than 120 countries.The

commitment of these countries poured in 22 500 pages national tariff schedules. In this tariff

reduction, the WTO requires that reduction can be reduced to 40% (in particular of industrial

products in developed countries) to period of 5 years (in 2000). At the time of the Uruguay round

closed (1994), which is generally applicable tariff rate is around 6.8%. With a declining tariff

ratesThus, the expected increasing acceptance of advanced industrial products which obtained

exemption from import duties (ie from 20% to 4% in developed countries). As with tariffs,

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GATT also requires states members to apply the principle of transparency. This principle also be

key for the prerequisitecertain trade (Predictable). The principle of transparency requires

disclosure or transparency of the law or national legislation and practice a country's trade. Quite

a few rules in the agreement WTO principles of transparency, which requires load its member

countries to announce the scope of nationally by publishing on sheets of official state or in any

way formally notify the WTO.

5. Principle of Reciprocity.

This principle is a fundamental principle in the GATT. This principle seems to apply in

preambule GATT and tariff negotiations are based on timbale and mutual benefit to each

pihak.21 GATT Preamble Paragraph 3 states:

"Being desirous of contributing to these objectives by entering into reciprocal and mutually

advantageous arrangements directed to the substantial reduction of tarifs and other varriers to

trade and to the eliminations of discriminatory treatment in international commerce.

6. Special Treatment for Developing Countries.

About two-thirds of GATT member countries are developing countries which are still in

the early stages of economic development. To help their development, in 1965, a new section of

Part IV which contains three articles (Articles XXXVI-XXXVIII), added to the GATT. Three

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new chapters in the section is intended to encourage industrialized countries to help economic

growth in developing countries. Part IV recognizes the needs of developing countries to enjoy a

more favorable market access. This section also prohibits the developed countries to create new

rintanganrintangan on exports developing countries. Industrialized countries are also willing to

accept that they will not ask for a reply in the negotiations regarding the reduction or eliminating

tariffs and other barriers to trade developing countries. At the time of the Tokyo Round ended in

1979, countries agreed and issued a decision regarding the grant more favorable treatment and

greater participation of developing countries in world trade ('enabling clause '). The decision

recognizes that countries are is also developing a permanent players in the world trading system.

This recognition is also a legal basis for industrial countries to provide GSP (Generalized System

of Preferences or a system of general preferences) to developing countries.

E. Outlines of the GATT provisions

GATT has 38 chapters. By and large, from pasalpasal is divided into 4 parts: Part One

contains two chapters, namely:

(a) Article I, contains the main article that defines the main principles of GATT, the member

states to implement mandatory clause 'Most Favoured Nation' treatment, to all members.

(b) Article II contains the agreed tariff reduction based on the agreed tariff reduction. Tariff

reduction agreements listed in the annex to the provisions of GATT and become part of

the GATT. Part two contains 30 chapters, of Article III to Article

XXII.

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(c) Article III contains a prohibition and tax measures Other discriminatory against imported

products in order to protect domestic production. Understanding other effortshere is all

the effort, what is a levy on domestic or issuance of laws, regulations or requirements

administrative affecting the sale, supply purchasing, transportation, distribution or use of

the product. Based on the principle of national treatment, all imported products that

already comply with customs rules must receive equal treatment asdomestic products in

the country.

(d) Article IV is under the heading of special provisions concerning cinematographic film

(cinematograph films). This article allows a country to set quotas on filmfilm through

regulations on the restriction film. However demukian restrictions or quotas should

remain subject to negotiations with the partiesaffected by the presence restrictions in the

form of this quota.

(e) Article V set the freedom of transit. This article recognizes the freedom of transit of

goods, including boats and other means of transportation through the territory of a

member state using the routes used for transit internationally in order to make transit to or

from the region State other GATT members (paragraph 2). In the case of this transit, each

member country can impose duties and establish regulations to transit to and from areas

other member countries. Imposition of fees and making the rules must be fair with due

regard to the circumstances or conditions of the past transit passage (paragraph 4).

(f) Article VI set anti-dumping and additional duties. It plays quite an important article and

quite widely used by developed countries on products of countries developed. Developed

countries accuse developing countries (Particular) have entered the goods into their

markets with dumping prices. Dumping is the practice of a country that sells products in

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 other countries with cheaper prices (below normal price) with the intent to seize the

market (no competition honest). Article VI is expressly provides restrictions on

understanding price below the normal price, namely:

1. lower than the price for the product in a country where products will be consumed

in the exporting country (the pricedomesik);

2. when there is no clue about the price domestic, then the normal price is the

highest price for designated product orexported to State third; or

3. production costs for these products plus additional costs (the costs) and

benefitsfeasible.

4. If a country finds positive evidence that a particular product is dumping, then that

country may impose import dutiesanti-dumping and additional import duties on

these products.

(g) Article VII (a valuation for custom purposesor valuation of imported goods for customs

purposes.) This article set criteria regarding the evaluation of the goods imported by

officials (customs duties) of the GATT member countries to import goods. This article

requires that the value of imported goods for the purpose customs should be based on the

real value of goods (actual value of the imported merchandise), not on the origin of the

goods or the value is without foundation or contrived (arbitrary or fictitious values).

(h) Article VIII under the title fees and formalities (Fees and formalities). This article

requires for all fees and charges (other than import duties and exports and the tax

provided for in Article III) imposed on or in connection with import or export should be

limited.

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 1. This article asserts that such levies should not be used as an indirect protection to

domestic products or a taxation on imports or exports for fiscal purposes (Article

VIII paragraph 1 (a). Verse 1 (b) of this article requires state member states to

reduce the amounts of such fees and charges.

2. Article VIII paragraph 1 (c) requires member states to: 1) simplify the regulation

and complexity of import and export formalitasformalitas, 2) reduce and simplify

the documentation requirements of import and export. The provisions of this

Article shall also apply to biayabiaya, charges, formalities and requirements

imposed by government officials relating to the import and export, including:

a) consular transactions, such as invoices, consular invoices and

certificates;

b) quantitative restrictions;

c) license;

d) supervision of foreign exchange (exchange control);

e) service-jasastatistik;

f) documents, documentation and certification; analysis and inspection;

quarantine or sanitation.

(i) Article IX set the mark of origin (marks of origin). In principle, this article requires that

all member states must provide equal treatment (no lees favorable treatment) associated

with the origin requirements of these goods to all products from member countries as

well as treatment of similar products from third countries (paragraph 1). Paragraph 6 of

Article IX requires that member countries should cooperate in preventing the use of trade

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 names not describe the origin of a product, at the expense of the names or the geographic

region of the product of a member State that is protected by law.

(j) Article X to set the terms of publication and administration of trade arrangements. This

article confirms that the Act, regulations, court decisions and administrative measures

concerning the classification or valuation of products for the purposes of customs, taxes,

levies, or any requirements that affect the sale, distribution, transportation, insurance,

inspection, processing, use, etc.., shall be published in the fair so that the member states

and the traders know it.

(k) Article XI to XV set quantitative restrictions or limitations. Quantitative restriction that is

often practiced is the imposition of quotas, import or export licenses or other measures in

addition to import duties, taxes or other levies. Article XI asserted that such practices are

prohibited.

(l) Article XII allows a country to apply restrictions barring the entry of imported products

in order to secure the balance of payments (restriction to safeguard the balance of

payment). Article XIII requires that the application of restriction quantitative should be

implemented without discrimination. So, for example a country to limit the entry of a

product from a countries, for example, from B, then the restrictions should also apply to

third countries, such as C.

(m) Article XIV exceptions regulate the application of quantitative restrictions in terms of

limiting the entry of imported products due to certain monetary reasons.

(n) Article XV adjust the settings on payment. This Article requires the need for cooperation

between GATT and the IMF.

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(o) Article XVI set the subsidy. This article acknowledges thepractice of countries which still

provide subsidies toproducts in the country with the intent to bargainin the international

market. However, this article obliges Statesis to notify the GATT of the existence of this

subsidy.In the development of GATT arrangement as laterlisted in paragraph 2, 3, and 4

of Article XVI, the GATT requires its member countries to remove these subsidies.

(p) Article XVII states regulate trade company (state trading enterprises). GATT realize that

the state trading company to lead to trade practices that are not 'fair'. By Therefore, this

article clearly states thatcompanies This should act in accordance with the principles of

public regarding non-discriminatory treatment in relation with government efforts that

affect imports and exports by traders.

(q) Article XVIII is under the title 'governmental assistance to economic development

'(government aid to development economics). This article recognizes that developing

countries need tariffs that are flexible and can apply some quantitative restrictions to

maintain its foreign exchange tool for development needs.

(r) Article XIX arrange emergency action on imports of certain products. This article gives

the right or justification for a country to suspend part or all of its obligations under the

GATT or withdraw or modify some or all of the concession. This new article can be

applied if a product is imported into a country that the presence of these products has

caused or threatened to seriously hit producers in the country. Paragraph 2 of this article

requires countries that want to apply this article to first notify and consult with the

GATT.

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(s) Article XX general exceptions set (general exeptions), ie, exceptions that it is possible to

abandon the rules or obligations of a State of the GATT, particularly in relation to the

actions required to:

1. protect public morals;

2. protect the life or health of human, animal or plants;

3. import or export of gold or silver;

4. protection of intellectual property rights;

5. products derived from the labor of the prisoners;

6. protection of national wealth, artistic, historical or ancient;

7. conservation of natural resources may be exhausted;

8. in relation to any obligations arising of commodity agreements between

governments; etc..

(t) GATT Article XXI to justify a country to abandon its obligations under the GATT on the

grounds of security (security

(u) exeption). Article XXII and XXIII set the resolution of disputes

(v) in the GATT. The third section contains 11 chapters. Article XXIV set how customs

union and free trade area can take advantage of exceptions to the principle most-

Favored-nation. Article XXV define the actions undertaken by the governments of

member countries of GATT. This article recognizes also allowed some exceptions

(waiver) of the GATT rules.

(w) Article XXVI to XXXV are the articles contained on the application of GATT, in the

form of acceptance and application of GATT (Article XXVI), status (state) rate of non

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 member countries (Article XXVII); provision for rate negotiations and the changes in the

tariff list ( Article XXVIII), the relationship between the GATT in Havana Charter

(Article XXIX), changes to the GATT (Article XXX), withdrawal or resignation of a

member of GATT (Article XXXI), restriction contracting parties (Membership of

GATT) (Article XXXII), the inclusion of a member of GATT (Article xxxiv), and failure

to apply some rules of the GATT between anggotaanggota certain GATT (Article

XXXV). The fourth section consists of 3 article (Article XXXVI-XXXVIII) were added

in 1965. Article XXXVI aware of the special needs of developing countries in the field of

international trade.

(x) Article XXXVII regulate countries' commitments (forward), unless there are compelling

reasons for not implementing this article, to provide economic assistance and trade to

developing countries. Article XXXVIII organize joint actions by members to assist

developing country trade.

F. conclusion

The analysis above suggests some of the following notes. GATT as a trading rule that

was made in 1947 are still relevant even still relevant for the future. Rules and principles that can

be arranged to load the rules accepted by most countries (though from its membership each

country has a different legal system). In particular non-discrimination principle is a principle

which is universally acceptable.

Actually the main problem of the existence of GATT rules is how to use it, especially for

developing countries. From GATT preamble implied the importance of goals, namely improving

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living standards of mankind; increase employment opportunities, improve the utilization of the

natural wealth of the world, and increase the production and exchange of goods. GATT rules

seem to have given the rules

balanced between the rights and obligations for the countries of the participants. For developing

countries, although the rules are unclear and do not give 'charge' which is clear, but the important

special rules for developing countries already exist. An important objective that implies one

important thing. These objectives can only be realized if the country (developed) concerned

understand the rules of GATT. A good understanding of allows countries to exploit the GATT

rules for trade purposes. Conversely lack of unfamiliarity GATT rules will result in difficulty of

use of such rules for the trade interests of the country concerned. That is, the goals of both the

above, will not be achieved.

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