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Non-tariff Barriers

Non-tariff Barriers. BASM530, John Ries. 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.

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Non-tariff Barriers

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  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.

  3. 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.

  4. 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?

  5. 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

  6. 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. • www.wto.org/english/tratop_e/tbt_e/tbt_info_e.htm

  7. 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.”

  8. “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?

  9. “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?

  10. “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?

  11. 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?

  12. 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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