The concept of a “like product” frequently appears in World Trade Organization (WTO) disputes involving taxes, regulations, and product standards. When governments treat imported and domestic goods differently, adjudicators must examine whether the products compete in the same market. The outcome of this assessment often determines whether a measure complies with the WTO’s non-discrimination rules.

What is a “like product”?

In international trade law, a “like product” refers to goods that are considered sufficiently similar to warrant equal treatment under the non-discrimination rules of the WTO.

The WTO agreements themselves do not provide a single, comprehensive definition of likeness. Instead, dispute panels and the Appellate Body assess “likeness” on a case-by-case basis, drawing on principles developed through earlier rulings under the General Agreement on Tariffs and Trade (GATT).

These rulings focus on the competitive relationship between products, examining whether two goods compete directly in the same market. If they do, treating them differently under taxes or regulations may violate WTO obligations.

Factors used to assess “likeness”

WTO adjudicators typically evaluate several factors when determining whether products are “like.” A frequently cited framework was articulated in the dispute Japan – Alcoholic Beverages II. These factors are not a rigid test but part of a broader assessment of how products compete in the marketplace.

Physical characteristics
Panels often begin by examining the physical properties of products, including their composition, design, and technical characteristics. Goods with similar materials or production processes may be more likely to be considered comparable.

However, differences in physical properties may matter only if they affect how products function or compete in the market.
End uses
Another key consideration is whether products serve similar practical functions. Goods that perform the same role in consumption or production may be regarded as competing products even if their materials or appearance differ.

For example, different types of alcoholic beverages may serve a similar role in consumer consumption despite differences in ingredients or production methods.
Consumer perceptions and market behavior
Consumer preferences can also influence assessments of likeness. If consumers regard two goods as interchangeable or substitute one for the other in response to price changes, this may indicate that the products compete in the same market.
Tariff classification
Panels may also consider how goods are categorized under the Harmonized System (HS), the international framework used to classify traded products.

Products grouped within the same tariff category may share similar characteristics, although tariff classification alone does not determine whether goods are legally “like.”

Emerging debates over “likeness”

Questions about likeness are becoming increasingly relevant as trade policy addresses new policy objectives.

Environmental regulations, carbon-related trade measures, and sustainability standards often raise questions about whether goods that are physically similar but produced through different processes should be treated as equivalent under trade rules.

For example, policymakers may seek to distinguish between products manufactured using high-emissions production methods and those produced using lower-carbon technologies. Whether such products can be treated differently without violating trade obligations may depend on how adjudicators interpret the concept of “likeness”.

Digital trade also raises new questions. As economies increasingly rely on digital products and services, regulators may face challenges determining whether digital and physical versions of similar products should be treated as equivalent under trade rules.

Why the concept of “likeness” matters

The notion of a “like product” provides a practical mechanism for applying the WTO’s non-discrimination principles. Rather than relying on a strict definition, WTO adjudicators evaluate the economic relationship between goods by considering their characteristics, uses, market competition, and classification in trade systems.

Understanding how “likeness” is assessed helps explain how international trade rules balance governments’ regulatory autonomy with the goal of maintaining fair competition in global markets.