Study Guide

3. Background to the WTO Valuation Agreement

Principles affecting the governance of international trade

The Agreement on the Implementation of Article VII (Customs Valuation) of the General Agreement on Tariffs and Trade 1994 is one of a number of trade agreements that together make up the World Trade Organization (WTO) Agreement. The WTO Agreement grew out of the General Agreement on Tariffs and Trade (GATT).

GATT is essentially a contract between trading nations. Through multilateral trade negotiations, countries agree to follow the same set of rules when they trade with one another.

GATT was established in 1947. Article VII of GATT covers Customs valuation, and it set out the basic principles for determining the Customs value of goods traded internationally.