GATT and the Alternative of Unilateral Free Trade JUNE 01, 1989
by PIERRE LEMIEUX Mr. Lemieux is an economist and author who has
been widely published in Canada and France. From December 5 to
December 9 of last year, representatives of more than 100
national governments met in Montreal for the mid-term
ministerial review of the Uruguay Round of multilateral trade
negotiations under the General Agreement on Tariffs and Trade
(GATT). What Is GATT? GATT is a commercial treaty, whose aim, as
stated in its preamble, is “the substantial reduction of tariffs
and other barriers to trade and . . . the elimination of
discriminatory treatment in international commerce.” Its main
principles include: the most-favored-nation clause, according to
which any advantage granted to one signatory nation has to be
extended to all others (Article I); equal treatment of goods
from signatory countries in terms of internal taxation and
regulation (Article II); fair trade against dumping and export
subsidization (Article VI); the elimi