Legal Section 4
certificate of origin
required for all shipments moving among the united states, canada, and mexico; it certifes the goods qualify as having originated in north america for all commercial shipments over 1k
single european act
some 'qualified majority' voting, 1987
qualified majority voting
The EU voting system in which the Council of Ministers does not need to reach unanimity on most issues. not all member states had to agree on proposals (abandoned unanimous consent)
european council
The heads of state of EU members and the president of the European Commission, big picture
-began as 2006 trans-pacific strategic economic partnership agreement (P4) which came out OF APEC and ASEAN -shows trade power of asia/pacific rim in 1980s on -regional FTA with tariff and NTB reductions -brunei, chile, singapore, new zealand
history of CPTPP?
-cargo trucks flow freely across border -but many mexican trucks lack US safety standards -can US require reloading just past border? no violates nat. treatment -can sanction specific trucks
in the matter of cross border trucking (NAFTA 2001)
automobiles
largest category of NAFTA merchandise - fully integrated
treaty of lisbon
political integration, EU vs. member state powers-similar to US constitution, makes charter of fundamental rights binding (maybe)
maquilador
production sharing plants or offshore assembly plants, or for mexico border plans along the US border
export taxes
prohibited by nafta, unless the taxes are also applied to similar goods sold for domestic consumption, taxes on exported goodssubs
EU directive
shall be binding as to the result to be achieved on each member state to which it is addressed but shall leave to the national authorities the choice of form and methods
Generalized System of Preferences (GSP)
special tariff preferences for selected products imported from any qualified developing country (mexico before nafta)
EU law > state law (commission of the european communitis v. italian republic)
supremacy doctrine?
-UK 15% -germany 21% france 15% italy 11% rest of EU 38%
EU GDP earners?
GATT/WTO allows FTAs to give better than MFN terms (ie. nafta was fine)
GATT/WTO allows FTAs to ...
pros: prop up mexican economy -political stability, reduce illegal immigration, mexico already part of GSP, access mexican markets, US firms already building there cons: lead to manufacturing and ag jobs leaving US, ross perot's giant sucking sound
NAFTA pros and cons?
trade increased with Canada and mexico (but was it already heading that way regardless?) manufacturing employment -decreased after nafta (but already headed that way especially after china joined wto)
US trade with nafta countries? US manufacturing employment?
-70% of steel and alum from NAFTA -mexico allows unions -keep ch. 19 and 20 arbitration, -limit ch. 11 with mexico, no canada (mexico and canada have TPP arbitration) -canada loses some dairy protections -updates IPR provisions -mexican trucks can deliver in US but not point to point -SOEs must use market behavior -sunset clause reaffirm every 6 or expires in 16 -any party can withdraw if another party enters FTA with an NME
USMCA changes?
signed sept 30 2018, in force july 1 2020
USMCA signed .... in force on
Common Agricultural Policy (CAP)
a EU policy based on the principle that a subsidy extended to farmers in any member country should be extended to farmers in all member countries
arbitral panel
a NAFTA panel, consisting of five members who are experts in trade or law
common market
a group of countries that acts as a single market, without trade barriers between member countries; protects right of all enterprises and persons within the area to do business, invest capital and sell services anywhere within the area without discrimination on the basis of national origin,
state state AD/CVD
chapter 19 nafta
state state NAFTA disputes
chapter 20 anfta
-long negotiations process -35 chapters 'acquis communautaire' -turkey a candidate since 1987 -all members must approve
accession process?
too big? new europeans are poorer, slavic/african/middle eastern influences, effect on labor markets, effect on 'european culture'
accession/new EU members?
four freedoms
as a result of the supremacy doctrine, EU has achieved considerable integration in four areas, called ... movement of goods, services, capital, people
-largest category of nafta merchandise: fully integrated -US has prior auto pact w/ canada -maquiladoras for parts going into US cars -increased mexican production of parts and vehicles (can get parts duty free from countries US can't) -ROO: 62.5% of vehicle cost and 60% of part cost (RVC) *many 'US" producers are foreign owned *increased automation
automobiles and nafta?
-northern ireland shares a border with ireland which is in the EU, trade issues now with brexit -majority of wales voted to leave -london and scotland voted to remain in EU
britain/ireland conflict?
arbitration - ISDS
chapter 11 (nafta)
RCEP:regional comprehensive economic partnership: cambodia, china, india, indonesia, laos, myanmar, philippines, south korea, thailand cptpp members: canada, mexico, peru members of both: australia, brunei, japan, malaysia, new zealand, singapore, vietnam
cptpp vs. rcep members?
-vietnam increased exports -most members increased imports -vietnam, NZ and singapore gain more export access -japan and singapore reduce trade barriers -china still major import/export market for all but mexico -likely more cross border services and partnerships (esp digital, e commerce) -clauses are being picked up by other trade deals
effects of CPTPP so far?
-disputed, but consensus is -increased cross border trade -US manufacturing declines but US auto industry more competitive -US textile declines but mexico more competitive than asia -consumer prices decline -immigration unchanged -no significant net effect on US economy
effects of nafta?
European Parliament
elected by citizens, # based on pop.
european commission
executive body, each state gets a rep-must swear to put EU first, 25k civil servants in directorates-general
customs user fees
fees imposed on importers to help fund the cost of customs enforcement and port services (eliminated by nafta)
european central bank
the central bank of those members of the European Union who share a common currency, in charge of monetary policy relating to the euro
production sharing
the process of spreading manufacturing and assembly operations across international borders, can involve the manufacture or fabrication of articles or component parts in one country and their assembly into finished goods in another
2008 to 2016 TPP negotiations (obama) feb 2016-original 12 nations of the TPP (US included) Jan 2017 Trump withdraws US march 2918- CPTPP-comprehensive and progressive agreement for TPP
timeline of TPP --> CPTPP?
free trade area
two or more countries agree to eliminate or phase out customs duties and other barriers to trade among the member countries, products originating in the FTA countries may be shipped duty free
regulations-binding on all states directives-instructions to one state decisions-focus on specific companies within a state recommendations and opinions-nonbinding
types of EU law?
substantial transformation test
used to determine the country of origin of goods imported into the US when the goods are produced or assembled in more than one country
-phased out tariffs, zero by 2008 -special treatment for NAFTA goods: wholly produced, certain RVC, or tariff shift -still some NTBs: spotty regulation/enforcment in mexico, canada got carve out for diary and broadcast TV, US limits foreign investment in mining, broadcasting, airlines, mexico has some SOEs -binding arbitration for disputes
what did nafta do?
-taiwan, philippines, colombia, koreo (ROK) -thailand, indonesia, bangladesh, india, sri lanka -china (sept. 2021) -approaching APEC ideal of pacific free trade area -maybe wto replacement?
who is interested in CPTPP?
tariff shift rule
The Annex 401 rules of origin may be based on a change in tariff classification, a regional value-content requirement, or both, depending on the requirements for that particular product
auto ROO raised from 62.5 to 75% now must make ~40% of autos and parts where workers make 16$/hour
USMCA raised auto ROO from .. to ... and changed ..
binational panels
panels where NAFTA cases now go, apply the same standard of review as would a court of law convened in the country where the case originated
european union
concept added by the Maastricht agreement, created the concept of a union as an expression of member states underlying unity as reflected in the communities
court of justice (ECJ)-appeals from european trial courts on EU law, civil law traditions, each state gets judge -all must ratify general court-trials against Eu institutions
court system in EU?
sept 1 20201 in japan (virtually)
fifth CPTPP commission meeting
no transfer fees, discriminatory ATM or credit card feeds, eurozone/european central bank
four freedoms: capital
customs union, no NTBS unless for health and safety EC article 30, like GATT article XX commission of the european communities v. Portuguese republic-ban on tint but not glaze
four freedoms: goods
Torresi v. Consiglio dell'Ordine degli Avvocati di Macerata, italians get spanish law degrees, apply to special section of italian bar
four freedoms: people
blanco and fabretti v. agencia delle entrante (ECJ 2014), italian law taxed foreign casino winnings but not domestic
four freedoms: services
customs union
free trade in all goods that come through any of the union members, even imports from outside the customs union c
EU regulation
general application, binding in its entirety and directly applicable in all member states, laws issued by the EU which are binding on Member States and automatically apply in each member country
APEC (Asia-Pacific Economic Cooperation)
group of 21 Pacific Rim countries, most with a Pacific coastline (U.S., Canada, China)
treaty of rome
like a regional FTA, unanimous consent, 1957
acquis communautaire
membership negotiations conducted in chapters, The body of laws and regulations new members of the EU must accept before gaining admission. accession treaty is drafted once negotiations are finished.
-mexican firm gets permit to build waste treatment plant -US corp pays 16.5M to purchase -mexico designates area a wildlife preserve -panel finds for US company but limits damages to $$$ spent
metalclad corp v. united mexican states (ICSID 2000)
maastricht treaty
more majority voting, EU citizenship for labor, eurozone and European central bank, 1991
regional value content
nafta requires a specified amount of this (automobiles an dparts)
nafta: established in 1994 as the biggest FTA in the world. integrated market especially for autos 'national treatment' .
nafta: established in ______ as the ________. was an _____ market, especially for _____which got ' '
national treatment
once goods arrive from another NAFTA country, they must be treated without discrimination and no differently than domestically made goods
council of ministers (council of EU)
one rep each, subject matter experts
Association of Southeast Asian Nations (ASEAN)
organization for economic, political, social, and cultural cooperation among Southeast Asian nations, myanamar, laos, thailand, vietnman, brunei, malaysia, singapore, philippines