Answers
ITL Exercise 3
- Course
- Institution
Answer of the Exercise assigned for week 3 of the course International Trade Law of the Master Globalisation and Law at Maastricht University.
[Show more]
Seller
Follow
rx
Content preview
International Trade LawExercise 3: Organic cofee (I)
1. Customs duties are only governed by the MFN-treatment rules.
Since we are dealing with a good and not a service, the MFN-
treatment rule of the GATT applies and more specifcally Article I:1
of the GATT. This obligation is of general application and the
exceptions are few. Worth mentioning here is the Enabling Clause
and the GSP, under which developed countries can give preferential
treatment to developing countries and are then not subject to the
MFN-treatment, whereas in EC – Preferential tariff it was
established that these concessions should be granted to developing
countries in the same situation. As seen in the case, Poorland is
granted such a preferential treatment. However, it is unclear from
the facts whether Poorland is in the same situation as Alexandria,
so for the course of this assessment, it is thought that it is in a
diferent ‘leaguet of developing countries than Alexandria in line
with the EC – Preferential tariff-ruling, so Welland can treat
Alexandria diferently than Poorland. Therefore, three comparisons
between tarif levels in Welland need to be made:
a. 8% ad valorem on organic cofee v. 10% ad valorem on non-
organic unroasted cofee
b. 8% ad valorem on organic cofee v. 15% ad valorem on non-
organic roasted cofee
c. 10% ad valorem on non-organic unroasted cofee v. 15% ad
valorem on non-organic roasted cofee
For all these measures, the test of inconsistency will be done along
four tiers:
- Is the measure covered by Article I of the GATT? Article I
covers both border and internal measures, especially relevant in
this case is that it covers customs duties and other charges
1
, - Does the measure confer any trade advantage? any advantage
to any country (so can also be a non-WTO member!), and can be
de jure or de facto (i.e. EC – Seal Productf)
- Are the products concerned ‘liket? an analysis of the nature
and extent of the competitive relationship on the relevant market
(including product characteristics, end-use, tarif classifcation,
consumer habits and preferences ethical concerns about
PPMs can only be relevant if they afect buying behaviour),
whereby the intent of the implementing country does not matter
- Whether the advantage is granted immediately and
unconditionally the ‘liket product from another Member
should receive the same treatment without conditions
a. – The ad valorem-rates are customs duties, and as such fall
within the scope of Article I:1 of the GATT;
– The measure de facto gives an advantage to countries
producing organic unroasted cofee beans (in the form of a
2%-lower custom on their products);
– The only diference between organic unroasted cofee beans
and non-organic unroasted cofee beans is that in their
production process, these former is not subject to pesticides
and other chemicals and the latter is. However, if PPMs afect
consumer behaviour on the Wellandian market, this might
result in the consideration of the Panel that the products are
‘liket. However, as seen in the facts of the case, Wellandianst
buying behaviour is not subject to much change when there
are ethical considerations into play. Hence, it is likely that
these products are found to be like;
– A non-organic unroasted cofee bean from State A does not
receive the same treatment as an organic unroasted cofee
bean from State B, and hence the measure does not apply
immediately and unconditionally. It can thus be concluded
that the measure is in violation of Article I:1.
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller rx. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.96. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72042 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now