OA Customs Union means that goods can move freely as within one customs territory and each party applies the same external tariff for imports from third countries and the same .B National treatment: Treating foreigners and locals equally .a Meaning National treatment (GATT Article ID means imported and locally-produced goods should be treated equally -at least after the foreign goods have entered the market. The same should apply to foreign and domestic services, and to foreign and local trademarks, copyrights and patents. National treatment only applies once a product, service or item of in tellectual property has entered the market. Therefore, charging customs duty on an import is not a violation of national treatment even if locally-produced products are not charged an equivalent tax °b. Importance National trea tment stands along side most-favored-nation treatment as one of the central principles of the WToAgreement. .This principle of"national treatment"is also found in all the three main WTo agreements(Article 3 of GATT, Article 17 of gats and article 3 of triPs). although once again the principle is handled slightly differently in each of these .C. Exceptions to National Treatment gOvernment Procurement GATT Article Ill: 8(a) permits governments to purchase domestic products preferentially, making government procurement one of the exceptions to the national treatment rule .This exception is permitted because the contracting parties recognized the role of government procurement in national policy. For example there may be a security need to develop and purchase products domestically, or government procurement may, as is often the case, be used as a po licy tool to promote smaller business. local industry or advanced technologies .while the gatt made government procurement an exception to the na tional treatment rule, the plurilateral agreement on government procurement resulting from the tokyo round mandates signatories to offer national treatment in their government procurement. However, the con tracting parties to the wto are under no obligation to join the Agreement on Government Procurement. In fact, it has mostly been developed countries which have joined the agreement.14 ①A Customs Union means that goods can move freely as within one customs territory and each party applies the same external tariff for imports from third countries and the same commercial policy. •B. National treatment: Treating foreigners and locals equally •a. Meaning • National treatment (GATT Article III) means imported and locally -produced goods should be treated equally — at least after the foreign goods have entered the market. The same should apply to foreign and domestic services, and to foreign and local trademarks, copyrights and patents. •National treatment only applies once a product, service or item of intellectual property has entered the market. Therefore, charging customs duty on an import is not a violation of national treatment even if locally-produced products are not charged an equivalent tax. •b. Importance • National treatment stands along side most-favored-nation treatment as one of the central principles of the WTO Agreement. •This principle of “national treatment” is also found in all the three main WTO agreements (Article 3 of GATT, Article 17 of GATS and Article 3 of TRIPS), although once again the principle is handled slightly differently in each of these. •c. Exceptions to National Treatment ⑴Government Procurement •GATT Article III:8(a) permits governments to purchase domestic products preferentially, making government procurement one of the exceptions to the national treatment rule. •This exception is permitted because the contracting parties recognized the role of government procurement in national policy. For example, there may be a security need to develop and purchase products domestically, or government procurement may, as is often the case, be used as a policy tool to promote smaller business, local industry, or advanced technologies. •While the GATT made government procurement an exception to the national treatment rule, the Plurilateral Agreement on Government Procurement resulting from the Tokyo Round mandates signatories to offer national treatment in their government procurement. However, the contracting parties to the WTO are under no obligation to join the Agreement on Government Procurement. In fact, it has mostly been developed countries which have joined the Agreement