Economic impact criterion
Economic impact criterion: a test sometimes suggested for use in the GATT to assess whether a domestic measure is impairing national treatment. Under this criterion, the proof for a finding that the national treatment obligation had been breached would have to be found in changing trade flows. Finding the proof might pose many practical difficulties because there may be other reasons why a country’s imports of a product might have changed. GATT dispute settlement panels have rejected the use of this criterion in favour of a test assessing whether there is equality of competitive opportunity.
Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf
Web site to visit: http://ctrc.sice.oas.org
Author of the text: W. Goode
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