1. International Health Policy Program -Thailand 1 Sources: Baumberg B. & Anderson P. Osterberg E. Cressy P. & Fortescue J. Reviewed by Areekul Puangsuwan Presented in CAS Journal Club 09/01/10 Effects of Free Trade on Alcohol and Public Health

2. International Health Policy Program -Thailand 2 Introduction 1. Need for greater clarity about the effects 2. Second threats: “chilling effects” 3. Scope of study: GATT & GATS 4. Method of the study: Search from web of sciences and Journals

3. International Health Policy Program -Thailand Results WTO as a potential threat 1. Exceptions interpreted narrowly - GATT & GATS do not prevent the adoption or enforcement of measures if those measures are necessary to protect human health - Countries find themselves held to commitments they never knew 2. Burden to proof is substantial and difficult - Alternatives will not be equally effective - Not disguised restriction on trade or “unjustifiable discrimination” - involve in highly unpredictable decisions 3. Compensatory commitments - Countries can scale back their commitments but this involves compensation elsewhere > unaffordable for poorer countries 3

4. International Health Policy Program -Thailand Clarifying effects on 3 typology policies 1.Protectionist policies: not permissible. So, when lifted - Likely to increase consumption particularly in youth and women via a combination of reduced price (comparative advantage and productivity) and marketing - Likely to lead to increased alcohol related harms Results

5. International Health Policy Program -Thailand 2. Partly protectionist, partly health policies: at risk - Political pressure> complex delicate balance > messy compromises > having multiple aims + varying degrees of ineffectiveness 3. Health policies: likely to be defended -Still subject to necessity test > certain highly trade restrictive policies are unlikely to pass. -Quantitative restrictions -Purely health-motivated policy can be confident of being upheld./ unaffected. -How can countries demonstrate?

6. International Health Policy Program -Thailand “Regulatory Chill” Companies exaggerate claims over trade treaties Danger in a mistaken pessimism bordering panic Policy makers needlessly avoid effective policies Pure health ground + trade friendly

7. International Health Policy Program -Thailand Conclusions 1. FCAP > support from international community > help manage relationship between trade and alcohol 2. Rebuttable presumption of legitimacy under international law 3. Carving alcohol out of trade agreements > strongest way of defending. 4. Avoid making any further commitments related to alcohol 5. Introduce stringent alcohol policies to counteract the effects.

8. International Health Policy Program -Thailand Commentaries From Osterberg E. -WTO is not an obstacle > EU case: Cannot apply too different excise duty rates on like products -WTO is not an org defending health-motivated al policies -Gov. are not taking advantage of al control opportunity -Effective al policies have nothing to do with protectionism. 8

9. International Health Policy Program -Thailand Comments from the Industry Gov are not prevented from introducing measures Real danger of missing unseen consumption of locally produced drinks. Internationally traded al are less likely to be misused as they carry high price tag. There’re provisions for exceptions in GATT and GATS * No effect * Unnecessary