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Essay writing, sample essay topic: International Trade - 1623 words

.. st two of these principles have tended to apply to developed countries only. Until recently, developing countries have not been required to offer reciprocal concessions or to bind their tariff rates. The introduction of a market-access commitment reflects the fact that the contestability of service markets is frequently restricted by measures that apply to both foreign and domestic entities. The market-access article explicitly covers a number of such measures that were felt to be of particular importance.

To a degree it is the equivalent of GATT Article XI, which prohibits the use of QRs. Note, however, that the market-access obligation overlaps with the national-treatment requirement, as prohibited measures may be discriminatory as well as non-discriminatory (e.g. limitations on foreign equity participation violates market access and is discriminatory). This overlap creates potential for confusion and disputes. Other GATS obligations address issues such as transparency, recognition of licenses and certification of service suppliers, policies regarding payments and transfers for services, domestic regulation, and the behavior of public monopolies.

Article III (Transparency) requires all Members to establish enquiry points to provide specific information concerning any laws, regulations, and administrative practices respecting services covered by the Agreement. Article VI (Domestic Regulation) requires that Members establish disciplines to ensure that qualification requirements, technical standards, and licensing procedures are based on objective and transparent criteria, are no more burdensome than is necessary to ensure the quality of the services concerned, and do not constitute a restriction on supply in themselves (thereby possibly circumventing a specific commitment). Article XI requires Members to refrain from applying restrictions on international transfers and payments for current transactions relating to their specific commitments - it does not apply generally. In 1964 GATT adopted a specific legal framework within which the concerns of developing countries could be addressed. Part IV dealt specifically with trade and development and contained three new articles XXXVI to XXXVIII.

Article XXXVI stated that Contracting Parties should provide, in the largest possible measure, more favorable and acceptable market access conditions for products of export interest to developing countries, notably primary products and processed or manufactured products. Paragraph 8 of the article addressed the principle of less than full reciprocity by specifying that developing-country members should not be expected to make contributions that would be inconsistent with their level of development in the process of trade negotiations. The Alcoholic Beverages case addressed differences in domestic taxation between shochu, a white spirit of largely (but not exclusively) domestic manufacture in Japan, and various white and brown spirits and liqueurs such as vodka, gin, whisky, brandy, rum, and others, which were usually imported. The law was "facially neutral" in the sense that all shochu, domestic or imported, was taxed equally, and all the other beverages, domestic or imported, were taxed equally. The rates applied to the latter products, however, were higher than the rates applied to shochu.

The issue was whether the different categories of product should be considered "directly competitive or substitutable," and thus whether the differences in rates of taxation violated GATT requirements to tax like imported and domestic products equally and not to tax directly competitive or substitutable products so as to afford protection to domestic production. The panel found, and the Appellate Body affirmed, that the imported products were "like" or "directly competitive or substitutable" with shochu, and that the differences in taxation violated GATT Article III. The case therefore stands as a successful attack on facially neutral measures with a discriminatory effect against imports in Japan. However, the difference in treatment among the products in this case was clear on the face of the tax law. There was no dispute that the law treated the different products differently, only whether those differences in treatment were legally actionable because of the products being "like" or "directly competitive or substitutable." The case therefore offers little comfort for trying to address in the WTO the types of facially neutral measures in Japan in which proof of the existence of the measure and its discriminatory or market restrictive effect is indirect, complicated, or highly fact-dependent. Of key significance to developing country exporters is the creation of trade barriers against the foreign products due to the way of production.

Mexico won the case at the GATT against the US ban on the imports of tuna which consider to be caught in nets that were unfriendly to dolphin, and the shrimpturtle case had analogous result, but both of the cases made the GATT/WTO quite unpopular with the environmental groups. Transparency at the multilateral and national levels is essential to reduce domestic pressures for protection and to enforce agreements ( GATT, 1985). Efforts to increase transparency and examine Members trade policies take up a large part of the institution's time. The approach is inspired by what Professor Bhagwati has called the 'Dracula principle': problems may disappear once light is thrown on them ( Bhagwati, 1988). Transparency provisions of the WTO relate to both the acts of the WTO itself, and the actions of its Members.

As far as the WTO itself is concerned, most important WTO documents are made public. 1 WTO decisions, panel findings, and other major documents of the WTO bodies are published in a series entitled Basic Instruments and Selected Documents (BISD) edited by the WTO Secretariat in Geneva. The Secretariat also prepares regular newsletters and publishes ad hoc studies on particular aspects of the multilateral trading system. Under GATT -1947 smaller trading nations often perceived a lack of transparency concerning agreements reached between the major players in either MTNs or with respect to the settlement of bilateral disputes or trade issues. While bilateral agreements regarding specific trade issues are not necessarily a matter of concern, they may be detrimental to the interests of third parties who are left to determine the potential effects of the deal on their exporters. More important in terms of generating controversy has been the practice on the part of large traders of coming to an agreement between themselves and then attempting to present the deal as a fait accompli in a negotiating group in an MTN or in the Council. Turning to transparency of Members' policies, the WTO requires that all trade laws and regulations are published.

Article X of the GATT, Article III of the GATS, and Article 63 of the TRIPs Agreement all require that all relevant laws, regulations, judicial decisions, and administrative rulings are made public. There are many notification requirements embodied in the Articles of the Multilateral and Plurilateral Agreements, all of which require the existence of appropriate bodies or agencies that have responsibility for satisfying them. A consolidated notification, including all changes in laws, regulations, policy statements, or public notices, must be provided each year by WTO Members to the Secretariat. So-called enquiry points must be created that have the responsibility for answering questions and providing relevant documents regarding health and product standards. Under the GATS, at least once a year Members must inform the Council for Trade in Services of the introduction of new - or changes to existing - laws, regulations, or administrative guidelines which significantly affect trade in services covered by their specific commitments.

By 1997 each Member must establish one or more enquiry points to provide specific information to other Members, upon request, on all relevant measures of general application which pertain to or affect the operation of the GATS. Members must also establish judicial, arbitral, or administrative tribunals or procedures which provide, at the request of an affected service supplier, for prompt, objective, and impartial review of administrative decisions affecting trade in services. The WTO also has important surveillance activities. The WTO itself periodically reviews the trade-policy and foreign-trade regimes of Members. Matters of interest to developing countries are reviewed in the Committee on Trade and Development. Multilateral surveillance of trade restrictions for balance-of-payments purposes takes place in the Committee on Balance of Payments Restrictions. The Textiles Surveillance Body reviews bilateral agreements on trade in textiles involving MFA countries and the Textile Committee oversees the phasing out of the Multifibre Arrangement (MFA). Several Committees that oversee the functioning of specific agreements conduct surveillance of the relevant policies of Members at intervals of between every three months and every two years. The effective resolution of trade disputes is vital for the smooth functioning of the trading system.

The growing number of trade disputes in the 1980s and early 1990s was variously attributed to the intensification of trade conflicts resulting from changing patterns of comparative advantage, in conjunction with the existence of vaguely worded GATT provisions and differences in their interpretation (subsidies, agriculture). Certain disputes were essentially attempts to contest existing provisions with a view to clarifying them. Conclusion According to the issues discusses above, we see that the government officials of the country of Narnia were not legally authorized to imposed the Designer Tax on the imported products of Four X company from the country of Fargus. Their decision was intended to be justified by the fact that Four X company used artificial flavors in their products which are dangerous for health, but the this Tax also should be imposed on products that are sweetened, and the beverages produced locally were not the subject of this tax in spite of being sweetened. As WTO is taking part in resolving trade disputes, the Four X company can argue about the justness on application the new Designer Tax to its products, while it is not applied to the similar products produced locally. WTO might help in resolving this conflict, and allow the Four X company to challenge the Designer Tax.

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