BLAW Ch 10

SPS measures

Sanitary and Phytosanitary - food animal and plant safety - country has right to protect human, animal, & plant life but can't use food safety as an excuse for blocking imports

outcome of US-Measures Affecting Production & Sale of Clove Cigarettes

US law prohibiting clove cigarettes isn't justified bc clove is "like" to menthol, which is allowed

TBT Agreement - conformity assessments

a mutual recognition of standards of which there's recognition of foreign quality certifications where the product is manufactured

trade issues with agriculture

agriculture is heavily subsidized by governments to provide market stability and price supports

TBT applies to

all products - agricultural, industrial, and consumer goods

technical barriers to trade (TBTs): technical regulations and standards...

are the same thing in practice - consumers won't buy a product without a "seal" of approval

outcome of EC Measures Concerning Meat and Meat Products (Hormones)

ban on beef containing residues of growth hormones violates the SPS agreement bc an existing intl accepted standard permits beef to contain a residue

WTO Agreement on Agriculture 1995

began removing govt intervention in the farming sector mostly aspirational

TBT Agreement - harmonization

bringing national standards in line with generally accepted international standards

SPS agreement: protective measures must follow:

can't be more restrictive that to the extent necessary, may not be disguised as a trade restriction, based on risk according to scientific principles/evidence, can't be used to discriminate against countries, inspections are fair and reasonable without delay

WTO mandates that countries use a balancing test with public goods rules -

must weigh protecting the public vs restrictions on trade

public good rules

often created by countries to restrict trade; truly, must pose as few barriers to trade as possible and cannot be trade barriers in disguise

Japanese Rice

- Japanese have national restriction on rice that have resulted in tons of excess stored rice - restrictions ensure that Japanese have self-sufficient in rice production - prices of rice fall but govt provides ever-increasing price supports to maintain its domestic rice system - stored rice is re-exported or donated as foreign aid

WTO Agreement on Govt Procurement (1994)

- applies to only the 47 countries that have signed and goods and services worth >130,000 SDRs (US $197,000) - reverses the GATT exception and reverses the Buy American Act requirements for US govt purchasing from AGP countries

WTO agreements on Trade in Financial Services: ... on Basic Telecommunication:

- banking, securities, insurance - opened telecommunication markets to foreign competitors

objectives of WTO Agriculture

- cut domestic subsidy payments to farmers - cut subsidizing farmers for exporting agriculture - must convert quotas and other non tariff barrier into tariffs

ISO 9000 governs... sets up... makes selling in ( ) much easier

- manufacturing and quality control, not indv item specifications - rigorous inspections of manufacturing and quality control processes to earn cert. (factory can earn certification when applies to all products made there) Europe

technical regulation

mandatory law or regulation affecting a product's characteristics

the AGP brings... prohibits...

...MFN trade, nondiscrimination, and transparency to govt procurement ...use of offsets requiring the seller to use local labor, domestic products, etc from buying country

WTO's 4 Ways to provide International Service:

1. cross border supply - supplying services across a border (intl calling) 2. consumption abroad - using a service provider in another country (tourism) 3. foreign commercial presence to provide a service (subsidiaries) 4. foreign indvs traveling to supply services

ISO

International Organization for Standardization - based in Geneva

TRIMS

Trade Related Investment Measures - eliminates trade balancing or local content requirements on foreign investments

TRIPS

Trade-Related Aspects of Intellectual Property Rights - WTO countries agreed to abide by IP conventions; domestic and foreign IP rights are treated the same and enforcement strengthened

least restrictive trade

WTO member countries, in setting otherwise valid restrictions on trade, shall make them no more onerous than necessary to achieve the goals for which they were imposed

codex alimentarius

a food code for international standards for protection of plants, animals, and foodstuffs

TBT Agreement - equivalence

accepting foreign standards that are functionally equivalent to domestic standards

trade balancing- local content requirements -

conditioning import levels with export levels requiring finished products to contain a certain % of locally produced materials

trade in services - recognition of licensing and professional qualifications

countries can require licenses for foreign applicants but have to grant them without discrimination on basis of nationality using objective criteria - license can't be based on requiring eduction in host country

prior approval requirements

country must approve compliance before sale in the importing country is allowed

prior certification requirements

country requires that product be certified by testing lab, but need not be "approved" by importing country

EU standards and technical regulations

efforts to reduce technical barriers to trade are critical bc of multi-national brands and consolidation of the euro - struck down German beer purity law & Italian pasta content regulations - attempting to increase its standardization through the use of the "CE mark" (intl mark for quality and safety)

TBT Agreement of the WTO

goal to minimize technical barriers to trade in Uruguay 1994 through harmonization, equivalence, and mutual recognition of standards

exception to GATT national treatment rules:

government buyers can buy from and favor its own domestic suppliers in its purchasing

trade in services

includes professional services (like law, accounting, engineering, etc0, health care, insurance, travel, etc 20% of world trade - 4 trillion in commercial service exports US is largest exporter of services

international standards (through ISO) foster intl trade

makes it easier to design products to intl standards rather than indv countries standards

WTO Agreement on Trade in Services (1994)

overseen by Council for Trade in Services and defines 4 ways to provide an international service

Japanese standards and technical regulations

product standards are based on design characteristics (how products should be designed) - "JIS mark" signifies it has been tested in Japan and is voluntary but consumers in Japan expect it

US standards and technical regulations

product standards based on performance - how the products should function

TBTs often used for... but are barriers to trade bc...

protection of public health, safety and welfare many aren't transparent to exporters ahead of time and often require "inspections" (problem for perishable goods)

government procurement

purchase of goods and services by the govt agencies at all levels

Buy American Act 1933

requires US federal agencies to purchase goods of US origin rather than foreign made goods (unless not in reasonable supply, unreasonably more expensive, or purchase under $2500)

administering AGP in the US

responsibility rests with Pres, can waive Buy American Act rules for AGP countries and developing countries

outcome of Thailand-Restrictions on Import of Cigarettes

restrictions went against GATT; had other measures reasonably available to control quality and quantity of cigarettes smoked that could achieve the health policy goals without blocking foreign import

WTO rules on nondiscrimination of services:

same basic rules as those on goods: no limits on #s of providers, can't require local participation, national treatment rules apply, laws/regulations must be reasonable, objective, & impartial

ISO examples

sizes of connecters (like screws, nuts, bolts), size of freight containers, safety devices, etc

EU Common Agricultural Policy

subsidies to farmers in Europe total over 1/3 of the entire EU budget

ISO 9000 certification

the standard for ensuring product quality through the product design and manufacturing process

Chinese standards and technical regulations

uses the China Compulsory Certification mark (CCC) which all imported products must have and is earned through inspection of samples by China and Chinese regulators traveling to exporting country to inspect foreign plants **major IP theft issues - socialist and communist state with bureaucratic regulatory framework

standard

voluntary guideline established by a private or administrative body