---
title: "GATT Article XXIV Definition and Importance | Model Diplomat"
description: "GATT Article XXIV allows WTO members to create customs unions and free-trade areas, crucial for regional trade agreements. Key for trade policy experts."
url: "https://modeldiplomat.com/learn/glossary/gatt-article-xxiv"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- GATT Article XXIV is the provision permitting WTO members to form customs unions and free-trade areas as exceptions to the most-favoured-nation obligation.
- How does GATT Article XXIV relate to the most-favoured-nation principle?
- What is the difference between a customs union and a free-trade area under Article XXIV?
- What does the 1994 Understanding add to Article XXIV?
- Why is Article XXIV central to the regionalism-versus-multilateralism debate?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

GATT Article XXIV is the provision permitting WTO members to form customs unions and free-trade areas as exceptions to the most-favoured-nation obligation.

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Example

The European Communities invoked GATT Article XXIV to defend its 1995 customs union with Turkey, leading to the WTO Appellate Body's 1999 ruling in Turkey – Textiles that the Article is a conditional defence, not an unrestricted exemption.

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