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Non-tariff Barriers BASM530, John Ries. WTO dispute resolution The WTO offers dispute resolution when one member believes another member is violating.

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Presentation on theme: "Non-tariff Barriers BASM530, John Ries. WTO dispute resolution The WTO offers dispute resolution when one member believes another member is violating."— Presentation transcript:

1 Non-tariff Barriers BASM530, John Ries

2 WTO dispute resolution The WTO offers dispute resolution when one member believes another member is violating an agreement. A WTO panel is formed and issues a ruling based on interpretation of WTO rules. Panels: The Director General of the WTO proposes 3 (sometimes 5) panelists from different countries from a roster of panelist put forward by the members. Appeals are possible (to a WTO Appellate Body). Non-compliance with a panel ruling can result in compensatory (retaliatory) tariffs levied against the violating country.


4 Non-tariff barriers: Violations of national treatment Article III requires that "once goods have entered a market (i.e. after applicable duties have been paid), they must be treated no less favourably than “like” domestically produced goods.” This means that governments are not allowed to adopt regulations or set taxes in such as way as to "afford protection" to the domestic industry.

5 Case: Korean Soju What is soju? How did Korean taxes on soju compare to taxes on whiskey? Are soju and whiskey “like” products? Why might Korea want differential taxes on soju and whiskey? Who filed a complaint? How did to WTO rule? What is Korea likely to do in response?

6 Agreement on Technical Barriers to Trade (TBT) Rules established to prevent governments from adopting standards whose purpose is to protect domestic producers –Standards should address essential performance criteria (i.e., safety) and not written to match the design features of domestic products –Imports must have equal access to testing and certification systems –Nations should accept tests performed by competent foreign organizations –Regulations should be transparent

7 TBT Agreement The TBT also prohibits technical standards that pose “unnecessary obstacles to trade” Unnecessary obstacles to trade can result when (i) a regulation is more restrictive than necessary to achieve a given policy objective, or (ii) when it does not fulfill a legitimate objective. –Article 2.2 of the Agreement specifies that legitimate objectives include inter alia: national security requirements, prevention of deceptive practices, protection of human health or safety, protection of animal and plant life or health or the environment. »

8 Agreement on Sanitary and Phytosanitary Standards Nations set food safety standards to protect consumers. The SPS Agreement requires: –Members must base their SPS measures on “international standards, guidelines, or recommendations… However, members may use measures which result in higher standards if there is scientific justification.” –All measures be based on risk assessments that take into account “risk assessment techniques developed by relevant international organizations.”

9 “Japan Tastes Once Forbidden Fruit” “WTO: Measure Affecting the Importation of Apples” Why is Japan a good potential market foreign apples? What are key differences between Japanese and American apples? How long has the Japan been “nominally open” to apple imports? Why only now are foreign apples available in Japan? What is the process of getting foreign apples into stores in Japan? What is the argument that foreign apples actually benefit Japanese apple growers? What changes did Japan make in 2005?

10 “US escalates GM food row with Europe” What countries complained about the EUs ban on new food products? What was their complaint? What was the EU’s response? What new EU legislation “means that the moratorium is now dead”? What will happen if the EU loses? What special interests have a stake in the dispute?

11 “Panel finds that EU Ban on Hormones Remains WTO-Inconsistent” Why did the WTO rule that the EU’s ban on hormone-treated beef was inconsistent with WTO rules? How high are the hormone-levels in the beef? What did the US do after the EU refused to lift the ban after the 1998 WTO ruling? Who else besides the US produces hormone- treated beef? Why did the EU maintain that the US should lift its sanctions?

12 Biotechnology in Agriculture Confronts Agreements in the WTO What are GMOs? What are the primary GMO crops and what country is the leading producer? What countries require labeling of GMOs? How does EU regulation of GMOs differ from that of the U.S.? What are the complaints against the EU regulatory process? Why does the U.S. object to labeling requirements?

13 Canada toughens stance on meat dispute What is the US law that Stockwell Day objects to? Why was the law enacted? Why is the law a problem for Canadian livestock producers? What are the estimates of the harm that the law will cause Canadian producers? What are Canada’s options?

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