Economic Needs Test

Economic needs test in Global Commerce Policy

In this regard, economic needs test is: a mechanism controlled by government, industry or professional associations to decide whether the entry into the market of new foreign, and sometimes domestic, firms is warranted on economic grounds. Such mechanisms are often opaque. They may be discretionary and protectionist. Sometimes economic needs tests purport to protect the interests of consumers, but these are not always asked for their views on additional competition in the market. The entries on trade policy are here. Article XVI of the GATS setting out market access rules proscribes the use of economic needs tests.[1]

Economic needs testin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Economic needs test” entry (OAS)

See Also