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Terms in this set (42)
VIENNA CONVENTION ON THE LAW OF TREATIES, ARTICLE 31:1
A treaty shall be interpreted in good faith in accordance with the ordinary meaning to be given to the terms of the treaty in their context and in the light of its object and purpose.
VIENNA CONVENTION ON THE LAW OF TREATIES, ARTICLE 31:2
The context for the purpose of the interpretation of a treaty shall comprise, in addition to the text, including its preamble and annexes:
(a) any agreement relating to the treaty which was made between all the parties in connection with the conclusion of the treaty;
(b) any instrument which was made by one or more parties in connection with the conclusion of the treaty and accepted by the other parties as an instrument related to the treaty.
VIENNA CONVENTION ON THE LAW OF TREATIES, ARTICLE 31:3
There shall be taken into account, together with the context:
(a) any subsequent agreement between the parties regarding the interpretation of the treaty or the application of its provisions;
(b) any subsequent practice in the application of the treaty which establishes the agreement of the parties regarding its interpretation;
(c) any relevant rules of international law applicable in the relations
between the parties.
VIENNA CONVENTION ON THE LAW OF TREATIES, ARTICLE 32
Recourse may be had to supplementary means of interpretation, including the preparatory work of the treaty and the circumstances of its conclusion, in order to confirm the meaning resulting from the application of article 31, or to determine the meaning when the interpretation according to article 31:
(a) leaves the meaning ambiguous or obscure; or
(b) leads to a result which is manifestly absurd or unreasonable....
GATT Article III:4
Internal Regulation; The products of the territory of any contracting party imported into the territory of any other contracting party shall be accorded treatment no less favourable than that accorded to like products of national origin in respect of all laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use.
GATT Article III:8(a)
The rule of national treatment does not apply "to laws, regulations or requirements governing the procurement by governmental agencies of products purchased for governmental purposes and not with a view to commercial resale."
GATT Article I
Most Favoured Nation Principle; any advantage, favour, privilege or immunity granted by any contracting party to any product originating in or destined for any other country shall be accorded immediately and unconditionally to the like product originating in or destined for the territories of all other contracting parties
GATT Art XI: 1
Non-tariff Barriers (Quantitative Restrictions Ban); No prohibitions or restrictions other than duties, taxes or other charges, whether made effective through quotas, import or export licences or other measures, shall be instituted or maintained by any contracting party on the importation of any product of the territory of any other contracting party or on the exportation or sale for export of any product destined for the territory of any other contracting party.
GATT Art XI: 1 RULE OF LAW
1) Reasonable ground to believe that sufficient incentives or disincentives exist for non-mandatory measures to take effects
2) The operation of the measures is essentially dependent on Government action or intervention
GATT Article XIII
Non-Discriminatory Administration of Quantitative Restrictions; No prohibition or restriction shall be applied by any contracting party on the importation of any product of the territory of any other contracting party or on the exportation of any product destined for the territory of any other contracting party, unless the importation of the like product of all third countries or the exportation of the like product to all third countries is similarly prohibited or restricted
GATT Article XIII: 1
stipulates that the importation or exportation of a product of a Member can only be prohibited or restricted if:
... the importation of the like product of all third countries or the exportation of the like product to all third countries is similarly prohibited or restricted.
GATT Article XIII:2
provides that Members shall:
... aim at a distribution of trade in such product approaching as closely as possible the shares which the various Members might be expected to obtain in the absence of such restrictions ...
Suppose that a government wants to protect its domestic industries from foreign competition. What are the different ways that the government can do so?
a) Tariffs on imports
b) quantitative restrictions in form of quotas or outright bans on imports
c) subsidize domestic producers, giving them a cost advantage over their foreign rivals
d) regulatory protectionism
country might, for example, require that imports undergo costly and time-consuming inspections, be labeled in the local language, be sold through specified distribution networks
If the government introduces a tariff, the price for consumers will rise, domestic production will increase, and there will be fewer imports.
Consumers will lose a certain amount of "consumer surplus" and the government will gain some revenue (same result for quotas on imports);
By choosing regulatory protection rather than a tariff or quota or subsidy
GATT Article II: 1 (a,b)
(a) Each contracting party shall accord to the commerce of the other contracting parties treatment no less favourable than that provided for in the appropriate Part of the appropriate Schedule annexed to this Agreement.
(b) The products described in Part I of the Schedule .... shall, on their importation into the territory to which the Schedule relates, .... be exempt from ordinary customs duties in excess of those set forth and provided therein. ...
GATT Art III (1): General Principle
contracting parties recognize that internal taxes and other internal charges, and laws, regulations and requirements affecting the internal sale, offering for sale, purchase, transportation, distribution or use of products, and internal quantitative regulations requiring the mixture, processing or use of products in specified amounts or proportions, should not be applied to imported or domestic products so as to afford protection to domestic production.
a charge imposed and collected by the importing country and paid for by foreign exporters or domestic importers and, ultimately, carried forward into higher consumer prices in the importing country.
- At the time of original negotiation of GATT tariffs were seen as the primary obstacle to free trade
- The initial goal of GATT was governing on a multilateral basis the progressive lowering of tariffs, in successive rounds of reciprocal bargaining
import licensing, valuation of goods at customs, pre-shipment inspections, rules of origin requirements, and certain investment measures
GATT Art III(2): Taxation (First Sentence)
<<The products of the territory of any contracting party imported into the territory of any other contracting party shall not be subject, directly or indirectly, to internal taxes or other internal charges of any kind in excess of those applied, directly or indirectly, to like domestic products. [...] >>
The definition of "like products" in Article III:2 first sentence should be constructed narrowly... (4)
1. Products characteristics, properties, nature
- Most characteristics are the same
- Commonality of end-uses
3. Consumer's taste
4. Tariff classifications
- Same headings in the Japanese tariffs;
- same tariff binding in tariff schedules
GATT Art III(2): Taxation (Second Sentence)
Moreover, no contracting party shall otherwise apply internal taxes or other internal charges to imported or domestic products in a manner contrary to the principles set forth in paragraph 1.
RULE OF BINDING CONCESSIONS
once a country lowers a tariff, it becomes "bound" and the country is obligated not to increase the tariff above the level at which it is bound (Art II: 1 (b))
How to determine the tariff rate?
1) WTO schedule of tariff concessions
2) Domestic tariff laws of the importing country
GATT Art III(2): Second Sentence Rule of Law
1) whether imported and domestic products are directly competitive or substitutable products;
2) whether the directly competitive or substitutable imported and domestic products are not similarly taxed; and
3) whether the dissimilar taxation of the directly competitive or substitutable imported and domestic products is applied so as to afford protection to domestic production
Measures that countries can justifiably use to restrict imports, despite the fact that they violate the non- discrimination principles of the WTO system
a) Anti-Dumping Duties
b) Subsidies Countervailing Measures
occurs when private firms of a country export a product at a price lower than the price it usually charged in its home market, thereby causing or threatening material injury to an industry in the importing state
WTO Anti-Dumping Agreement
allows government to act against dumping where there is genuine or material injury to competing domestic industry.
Anti-Dumping Action: Three Elements
1. Dumping is Taking Place
2. The Extent of the Dumping (Three calculation method)
3. Dumping is Causing or is Threatening To Cause Injury To The Domestic Industry
Methods to calculate product's usual value
1. Price in exporter's domestic market
2. Price charged by the exporter in another country
3. Exporter's production cost and normal profit margin
Subsidy; Countervailing duties (CVD)
is a financial or commercial benefit given to a producer, a manufacturer or grower by any government or public body of this kind.
- direct transfer of funds,
- government forgoes revenues otherwise due u provision of good or services
Countervailing duties (CVD)
are designed to offset the effects of a subsidy. They are similar to anti-dumping actions. However:
- Antidumping duties are assessed to remedy the actions of foreign firms
- Countervailing duties are assessed to remedy the actions of foreign government
A member country may restrict imports of a product temporarily if its domestic industry is injured or threatened with injury caused by a surge in imports
Safeguards measures may be imposed upon demonstration that:
1. serious injury (or threat of injury) has occurred, and
2. these measures are in the public interest
GATT Article XX
The most important of these are measures:
- (a) necessary to protect public morals,
- (b) necessary to protect human, animal or plant life or health,
- (c) relating to the importation or exportation of gold and silver,
- (d) necessary to secure compliance with laws and regulation that are not inconsistent with GATT,
- (e) relating to the products of prison labor,
- (f) imposed for the protection of national treasures of artistic, historic or
archeological value, and
- (g) relating to the conservation of exhaustible natural resources if such measures are introduced in conjunction with restrictions on domestic consumption or production.
Measures aimed at achieving these objectives are permitted provided they are not applied in a manner which would constitute:(1) a means of arbitrary or unjustifiable discrimination between countries where the same conditions prevail, or
(2) disguised restriction on international trade.
The Sanitary and Phytosanitary Measures Agreement (SPS)
allows members to take scientifically based measures to protect public health, provided that such measures are based on internationally established guidelines and risk-establishment procedures.
Leading Case: Hormone-Treated Beef case
Technical Regulations and Standards (TBT)
rules that exist to ensure that a product is produced according to an established process or to conform to specific requirements; Technical regulation, standard and procedures implemented to protect environment, human health and safety, national security, consumer information
GATT Art. XXIV
Customs and Free Trade Areas; permits the formation of free trade areas (FTAs) and customs unions (CUs);
It requires three conditions to be fulfilled by CUs and FTAs:
1. trade barriers on outside countries should not rise on average,
2. tariffs and other trade restrictions must be removed on 'substantially all' intra-regional trade within a 'reasonable' time period, and
3. the arrangement must be notified to GATT, which may decide to establish a working party to determine if these conditions are satisfied.
Free Trade Agreement (FTA)
Free Trade Agreement. Free trade is a system in which the trade of goods and services between or within countries flows unhindered by government-imposed restrictions; i.e., NAFTA
Customs Union (CU)
An agreement among several countries to eliminate internal barriers to trade and to erect common barriers against nonmember countries; the members adopt a common external tariff on each product.
GATT Art. XXIV: Enabling Clause
Under this provision, "partial" tariff preferences are admissible, that is, preferences among developing countries need not result in the formation of full FTA or CU.
Preferences that apply to only a subset of products
The arrangements among developing countries are almost always notified to the WTO under the Enabling Clause.
THIS SET IS OFTEN IN FOLDERS WITH...
Edexcel UK Politics: UK Elections
OTHER SETS BY THIS CREATOR
CRM100 - Ch.4
CRM100 - Ch. 3
CRM100 - Ch. 2