The definition of “National treatment”
National treatment is a concept of international law, States that if a state provides certain rights and privileges for its citizens. It also must provide the same rights and privileges to foreigners who are currently in the country. For example, if country a provides special tax benefits for the young pharmaceutical industry, pharmaceutical companies that operate in the country will be eligible for tax relief, regardless of whether the company is local or foreign. The concept of national treatment can be found in bilateral tax treaties and also in most world trade organization agreements.
The destruction of “National treatment”
When applying international treaties, the concept of national treatment means that the state must treat citizens of other States participating in the international agreement the same. When goods are imported under international agreement, they should be treated the same as locally produced goods, although this obligation does not take effect until, while imports went to overseas market.
Disadvantages of national treatment
National treatment is generally considered desirable. However, this may not always be, because the concept allows the state, in theory, to deprive foreigners of rights or property which the state deprives its citizens. For example, assume that the state has a law that allows it to expropriate the property. In accordance with national treatment, a foreign firm would technically still subject to the law of expropriation. Or, say, the laws of the state believes that a married woman cannot travel without her husband’s permission; in accordance with the concept of national treatment, a foreign married woman, traveling or living in this country from the husband’s permission to travel, even if it is not needed in their country of origin. However, depending on the country, others may be laws that could limit national treatment only benefit up.
While, historically, governments, particularly in developing countries, took advantage of the national regime to justify expropriation, these questions are usually solved through contracts or agreements.
Opposing the principle of national treatment is that the minimum standards of fairness that would provide foreign nationals access to court proceedings and the protection of basic human rights, regardless of what they are allowed in accordance with the doctrine of national treatment.