---
title: "GATT Article III Definition and Importance | Model Diplomat"
description: "GATT Article III mandates that imported goods be treated equally to domestic products in taxation and regulation, crucial for trade fairness."
url: "https://modeldiplomat.com/learn/glossary/gatt-article-iii"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- GATT Article III is the national treatment obligation requiring that imported goods, once across the border, be treated no less favourably than like domestic products in internal taxation and regulation.
- How does GATT Article III differ from Article I?
- What is the difference between 'like products' and 'directly competitive or substitutable products' under Article III:2?
- Can a measure that violates Article III still be lawful?
- Does Article III apply to government procurement?

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Example

In Japan – Alcoholic Beverages II (1996), the WTO Appellate Body held Japan's Liquor Tax Law breached GATT Article III:2 by taxing imported vodka and whisky more heavily than domestically favoured shochu.

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