scholarly journals Sorting Out Mixed Messages under the WTO National Treatment Principle: A Proposed Approach

2015 ◽  
Vol 15 (3) ◽  
pp. 423-450
Author(s):  
EMILY LYDGATE
Keyword(s):  
Market Analysis ◽  
National Treatment ◽  
Appellate Body ◽  
Policy Objectives ◽  
Treatment Principle ◽  
Mixed Messages ◽  
Implicit And Explicit ◽  
Competitive Products

AbstractWhen establishing whether a disputed regulation is protectionist under the WTO National Treatment Principle, there are two key elements: its effect on the market for competitive products, and its intent or policy rationale. Yet the Appellate Body has formally rejected both elements, and in the surprising 2014 outcome of EC–Seal Products, under the key provision GATT Article III(4), the latter was simply denied. This obfuscation leads to implicit and explicit conflation of these elements. In some disputes, qualitative findings about the existence and nature of competitive relationships are presented using the language of quantitative market analysis. In others, compelling policy objectives shape the outcome of a supposedly market-based analysis. This article proposes an approach that synthesizes two strands of scholarship, advocating more rigorous use of market-based evidence and stronger analysis of policy rationale. Separating these elements will achieve the appropriate balance between them and lead to greater transparency in dispute outcomes.

scholarly journals Thailand–Cigarettes (Philippines): A More Serious Role for the ‘Less Favourable Treatment’ Standard of Article III:4

2013 ◽  
Vol 12 (2) ◽  
pp. 163-193 ◽  
Author(s):  
WILLIAM J. DAVEY ◽  
KEITH E. MASKUS
Keyword(s):  
Market Analysis ◽  
Legal Issues ◽  
External Cost ◽  
National Treatment ◽  
Appellate Body Report ◽  
Appellate Body ◽  
Treatment Standard ◽  
Treatment Principle ◽  
Policy Impacts

AbstractThis paper analyzes a number of economic and legal issues raised by the Appellate Body Report in the Thai–Cigarettes case. The paper suggests two improvements that could be made to Panel procedures; supports the Appellate Body's interpretation of Article XX(d) in the present case, which seems to discard an earlier mistaken approach to Article XX; and examines, in some detail, whether the Appellate Body's application of the ‘less favourable treatment’ component of GATT Article III:4 in this and other cases is consistent with its jurisprudence under GATT Article III:2 and TBT Article 2.1. From an economics perspective, the case is straightforward on its face. However, the Appellate Body's rigorous application of the ‘less favourable treatment’ principle might not survive a fuller market analysis in terms of policy impacts on conditions of competition. Further, while we agree with the rejection of Thailand's Article XX claim, we raise the question of whether a strict national-treatment rule may be an unwarranted constraint on policy where there is a clear trade-related external cost to address.

scholarly journals El apoyo a las energías renovables a la luz del Sistema Mundial de Comercio. El rol de los Acuerdos de la Organización Mundial de Comercio en permitir el desarrollo de proyectos de energías renovables

2017 ◽  
Vol 6 (12) ◽  
Author(s):  
Alamiro Andrés Alfaro Zepeda
Keyword(s):  
Renewable Energy ◽  
National Treatment ◽  
Trading System ◽  
The Core ◽  
Appellate Body ◽  
Energy Projects ◽  
Recent Developments ◽  
World Trading System ◽  
Treatment Principle ◽  
General Exceptions

The development of renewable energy projects is crucial to address many issues, from climate change to social and environmental demands. However, policies encouraging theses project may face resistance among WTO members, being contested under WTO panels. Different WTO member’s policies have been impugned regarding the so-called local requirements. Recent developments in the Appellate Body reports have shown that green policies or the support of renewable energy is compatible with the WTO law, directly or even under the general exceptions of the Article XX of the GATT. Nonetheless, the inclusion of national content requirements to access subsidies or benefits for renewable energy project are not allowed. Indeed, such measures violate the national treatment principle, one of the core principles of the world trading system.

scholarly journals Appellate Body Report, India – Additional and Extra-Additional Duties on Imports from the United States (WT/DS360/AB/R, adopted on 17 November 2008)

2010 ◽  
Vol 9 (1) ◽  
pp. 239-263 ◽  
Author(s):  
PAOLA CONCONI ◽  
Jan Wouters
Keyword(s):  
United States ◽  
Burden Of Proof ◽  
The United States ◽  
Central Point ◽  
National Treatment ◽  
Appellate Body Report ◽  
Appellate Body ◽  
Border Tax Adjustments ◽  
National Governments

AbstractThis paper critically reviews the main findings of the Appellate Body in the case India – Additional and Extra-Additional Duties on Imports from the United States (India–Additional Import Duties). This ruling sheds light on the interplay between two core provisions of the GATT, namely Article II GATT (Schedules of Concessions) and III GATT (National Treatment on Internal Taxation and Regulation). Linked to this demarcation, the question on the allocation of the burden of proof was a central point of contention in this dispute. The ruling also establishes the principle that WTO Members are allowed to use border tax adjustments, as long as the tax imposed on imports does not exceed the domestic tax. We argue that this principle can help to reconcile the objectives of the WTO with those of national governments.

scholarly journals Carbon-related border tax adjustment: mitigating climate change or restricting international trade?

2011 ◽  
Vol 10 (4) ◽  
pp. 497-525 ◽  
Author(s):  
CHRISTINE KAUFMANN ◽  
ROLF H. WEBER
Keyword(s):  
Practical Importance ◽  
Carbon Taxes ◽  
National Treatment ◽  
Trading System ◽  
Environmental Objectives ◽  
Process Compliance ◽  
Treatment Principle ◽  
Energy Taxes ◽  
Proportionality Test ◽  
Border Tax Adjustment

AbstractBorder tax adjustments in the form of carbon taxes on products from countries with lax environmental production standards or in the form of a required participation in an emissions allowances' trading system have become a heavily debated issue under WTO law. Such an adjustment might be permissible if energy taxes as indirect taxes are applied on inputs during the production process. Compliance with the Most Favoured Nation principle has less practical importance than the not-yet settled likeness discussion under the National Treatment principle. Consequently, since the compatibility of carbon-related border tax adjustment measures is partly contested, potential justifications such as the conservation of exhaustible national resources or the protection of health (Art. XX GATT) become relevant. The application of the necessity and proportionality test requires that carbon measures are tailored so as to substantially contribute to the achievement of environmental objectives and do not create any arbitrary or unjustified discrimination.

scholarly journals PENERAPAN PRINSIP NON-DISKRIMINATIF DAN NATIONAL TREATMENT OLEH INDONESIA DALAM RANGKA MEA BERDASARKAN UNDANG-UNDANG NOMOR 25 TAHUN 2007 TENTANG PENANAMAN MODAL

2017 ◽  
Vol 2 (1) ◽  
pp. 80-90
Author(s):  
Nurhani Fithriah
Keyword(s):  
National Treatment ◽  
Economic Resource ◽  
Treatment Principle

Indonesia yang tergabung dalam PBB turut mengambil langkah awal dalam kebijakan yang diratifikasi dengan persetujuan pembentukan WTO melalui Undang-undang No.7 tahun 1994, yakni keterikatan untuk melaksanakan seluruh hasil kesepakatan perundingan Uruguay.  Peraturan penanaman modal asing sesungguhnya tidak secara tegas termuat dalam perjanjian WTO, namun secara eksplisit muncul dalam rumusan prinsip-prinsip perdagangan bebas khususnya terkait prinsip non diskriminasi yang meliputi Most Favoured Nation (MFN) dan National Treatment Principle (NT). penanaman modal asing merupakan solusi bagi negara-negara berkembang, seperti Indonesia untuk mengoptimalkan pengelolaan sumber daya alam dan potensi ekonomi (economic resource) agar bernilai lebih tinggi. Dibentuknya Undang-Undang Nomor 25 Tahun 2007 tentang Penanaman Modal dimaksudkan untuk menarik investor asing dan investor dalam negeri. Permasalahan yang akan dibahas dalam tulisan ini yaitu terkait  kewajiban diterapkannya  Prinsip non-diskriminatif dan  National Treatment atau perlakuan yang sama bagi penanam modal asing di Indonesia dan penerapan prinsip Non-Diskriminatif dan National Treatment dalam kasus Pengadaan Mobil Nasional Indonesia. Kesimpulan yang didapat yakni Pemerintah Indonesia sudah menerapkan prinsip Non-Diskriminatif dan National Treatment dengan menerapkan prinsip tersebut di dalam Undang-undang Nomor 25 Tahun 2007 tentang Penanaman Modal. Indonesia juga menerapkan Prinsip Non-Diskriminatif dan National Treatment dalam Kasus Pengadaan Mobil Nasional Indonesia dengan  menjalani putusan yang mewajibkan Pemerintah Indonesia mencabut semua Keputusan Presiden beserta Peraturan lainnya yang terkait dengan persyaratan kandungan lokal.

scholarly journals Consumer preferences and the National Treatment Principle: emerging environmental regulations prompt a new look at an old problem

2011 ◽  
Vol 10 (2) ◽  
pp. 165-188 ◽  
Author(s):  
EMILY BARRETT LYDGATE
Keyword(s):  
Public Policy ◽  
Consumer Preferences ◽  
Environmental Regulations ◽  
Green Products ◽  
National Treatment ◽  
Policy Issues ◽  
Sustainability Criteria ◽  
Treatment Principle ◽  
Health Regulations ◽  
Specific Influence

AbstractShould consumers' preference for ‘green’ products help justify, from a WTO perspective, emerging regulations such as restrictions on trade in non-sustainable biofuels? Despite the role consumer preferences have played in WTO disputes, in association with the ‘like’ products concept, there has not been enough focused examination of their specific influence, particularly in disputes on ethical public policy issues, such as environmental or health regulations. To this end, this paper examines key GATT Article III disputes, pointing out that they included attempts both to measure, and also to interpret, consumer preferences. The latter approach becomes more tempting when consumer preferences are difficult to measure; import bans or restrictions associated with ethical public policy regulations can bring about such a situation. A hypothetical dispute about EC biofuels sustainability criteria demonstrates this problem. Options to make the concept of consumer preferences more coherent include limitations on how they can be invoked, and an increased commitment to capturing them through measurement.

First WTO Judicial Review of Climate Change Subsidy Issues

2013 ◽  
Vol 107 (4) ◽  
pp. 864-878 ◽  
Author(s):  
Sherzod Shadikhodjaev
Keyword(s):  
Renewable Energy ◽  
Dispute Settlement ◽  
The European Union ◽  
National Treatment ◽  
Appellate Body ◽  
Fixed Price ◽  
The Government ◽  
Renewable Energy Generation ◽  
Feed In Tariff

On May 6, 2013, in the combined reports Canada—Certain Measures Affecting the Renewable Energy Generation Sector and Canada—Measures Relating to the Feed-in Tariff Program (Canada—Renewable Energy/Feed-in Tariff), the Appellate Body of the World Trade Organization (WTO) upheld some key conclusions of a decision of the WTO’s dispute settlement panel (the panel), finding Ontario’s feed-in tariff (FIT) program in violation of certain of Canada’s WTO obligations. The FIT program permits qualified Ontario-based renewable energy producers to enter into long-term fixed-price electricity purchase contracts at premium rates in exchange for feeding into the grid. Japan and the European Union had challenged the program on two grounds: first, that conditioning FIT program eligibility on the use of locally produced materials discriminates against foreign goods, contrary to “national treatment” obligations; and, second, that it constitutes an unlawful subsidy (the provision of a financial contribution by the government that confers a benefit on a specific recipient), contrary to WTO requirements under the Subsidies and Countervailing Measures (SCM) Agreement. While affirming the panel’s decision on the first ground, the Appellate Body reversed its finding on the second, that the complainants had failed to establish a FIT-based “benefit” for electricity producers within the meaning of WTO law. But the Appellate Body itself could not eventually confirm the fact of illegal subsidization.

scholarly journals The TBT Panels: US–Cloves, US–Tuna, US–COOL

2013 ◽  
Vol 12 (2) ◽  
pp. 327-375 ◽  
Author(s):  
ROBERT HOWSE ◽  
PHILIP I. LEVY
Keyword(s):  
Economic Analysis ◽  
The State ◽  
International Standards ◽  
Legal Analysis ◽  
National Treatment ◽  
Economic Issues ◽  
Appellate Body ◽  
Key Points ◽  
Labeling Requirements ◽  
Technical Regulations

AbstractIn a series of controversial 2011 decisions, WTO DSM Panels sought to reconcile legitimate regulatory interests of the state with various obligations to treat imported products in an even-handed and not unnecessarily trade-restrictive manner. Among the key points of contention were which obligation pertained in each case – national treatment, limits on technical regulations, or rules governing standards. In each case, the Panel imposed significant restrictions on national regulatory practices, and in each case the Panel reasoning was challenged by the Appellate Body. This paper addresses some of the key legal and economic issues raised in the original Panel decisions, leaving the late-breaking Appellate Body decisions for future analysis. Given the unsettled nature of the terrain, the economic analysis focuses primarily on the question of national treatment, while the legal analysis deals with other interesting points that emerge from these rulings, such as the appropriate level of deference to international standards and the legitimacy of labeling requirements.

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