LEGL 4900 Test 2: Chapter 10

WTO Agreement on Government Procurement (AGP)

Reverses WTO rules that allow government agencies to favor domestic products. Requires fair, open, and nondiscriminatory procurement practices and sets up uniform procurement procedures to protect suppliers from different countries

China Compulsory Certification Mark (CCC Mark)

Symbol of approved product in China Companies submit products to approved lab in china for inspections for quality, safety, and environmental standards. Then Chinese inspector must also inspect foreign plant to receive certification must receive before importing to china

technical barriers to trade (TBT)

Technical regulations and standards that apply to imported foreign products, can also affect domestic products the same way

Unilateralism

The policy that a nation should retaliate unilaterally against another country that discriminates against its products or firms rather than relying on an established international or multilateral framework for resolving trade disputes

United States- Measures Affecting the Production and Sale of Clove Cigarettes

US passed law banning cigarettes with flavor, herb, or spice, including fruit. To protect minors. Made exception for Menthol Cigs (US primary producer). Indonesia is one of the largest producers of clove cigarettes also banned by new law. Indonesia argues that this law unfairly discriminates against flavored tobacco products from other countries US claimed menthol was left to reduce widespread withdrawl and a black market for menthol cigs Court: WTO found that act violates Agreement on Technical Barriers to Trade (TBT) which prohibits technical regulations that treat imported products less favorably than "like products" of domestic origin, Menthol and clove cigs are like products due to competitiveness in marketplace.

commercial presence

a foreign company setting up subsidiaries or branches to provide services in another country

Trade-Related Investment Measures (TRIMs)

a national rule or regulation on foreign investment that has a direct or indirect effect on trade in goods

local content requirement

a regulation that requires a foreign company or other producer must use minimum percentage of locally made parts or components in the manufacture of a product Prohibited by TRIM

Codex Alimentarius

"food code" for the protection of the world's food supply developed slowly over most of the last century nowadays standards developed on basis of world wide studies

General Agreement on Trade in Services (GATS)

A WTO agreement governing the international trade of services. -Based on GATT -Defines 4 ways to provide service: 1) Services from one country to another, cross- border supply 2) Consumer/Firm uses service in another country, consumption abroad 3) Company sets of foreign branches/subsidiaries, commercial presence 4) Individuals traveling to another country to supply services, presence of natural persons

priority watch list

A list created by the USTR that helps US IP Rights negotiations and helps US companies identify countries where their IPRs might be in jeopardy Includes: Algeria, Argentina, Chile, China, India, Indonesia, Kuwait, Russia, Thailand, Ukraine, and Venezuela

CE Mark

A mark or label indicating the cargo conforms to standards required by the European Union for certain products (Kids toys, gas appliance, machinery, and medical and electric equipment) Businesses seeking mark are audited by EU body and product is tested by independent lab. Once authorized need no more approval to sell in EU Means Conformite Europeene

watch list

List of countries that, according to USTR, don't protect US IPRs has 23 countries on it

consumption abroad

consumers or firms making use of a service in another country

priority foreign countries

countries that deny adequate protection to US IP Rights. USTR identifies and reports a list of these countries

performance standards

describe how product should function Used in US More cost effective Easier to meet than design standards

Domestic Subsidies

distort markets by causing overproduction and suppressing prices while protecting the incomes of farmers Prohibited under WTO agreement on agriculture except for: research, disease control, environmental protection, and rural development. Also permits cash payments to farmers during emergencies

Trade in services

exports and imports of services such as global communications, travel, tourism, professional services, law, accounting, architecture, engineering, management consulting, health care, transportation and distribution, finance and banking, insurance, Computer and IT services, R&D, advertising, market research, entertainment, repair and maintenance, education, environmental engineering, and waste management

Transparency

extent to which a governments regulations are made readily available to public (including customs and import procedures, as well as technical regulations, product standards, and others)

Japanese Industrial Standards Mark (JIS Mark)

government authorized symbol of an approved product in Japan Voluntary, products without it tend to struggle in Japanese market Indicates product was submitted for on site inspection by appropriate Japanese ministry and has met standards for quality control, production techniques, and research methods.

Trade-Related Aspects of Intellectual Property Rights (TRIPS)

government rules on IP rights that have a direct or indirect effect on trade in goods

presence of natural persons

individuals traveling from their own country to supply services in another

conformity assessments

is when one country recognizes the certifications of products from another country.

Technical Regulation

law or regulation affecting a product's characteristics-such as its performance, design, construction, chemical composition, materials, packaging, or labeling-that must be met before a product can be imported or sold in a country

trade balancing requirements

laws that condition a company's right to import foreign goods on the basis of the volume of goods that company exports Prohibited by TRIM

International Organization for Standardization (ISO)

nongovernmental organization based in geneva comprising the national standards institutes of 163 countries. Created over 21000 standards

US Section 301

part of Trade act of 1974, permits US to take retaliatory trade action against other countries who's trade practices with US are unreasonable, discriminatory, or a violation of trade agreement

Agricultural Export Subsidies

payments or other benefits given to farmers that directly encourage, or are conditional upon, the export of food or agricultural products not considered illegal if part of foreign aid package to needy country

procurement offsets

prohibits a procuring agency from awarding a contract to a foreign firm on the basis of certain conditions EX: must uses domestic subcontractors, domestic materials, or local labor

Prior Approval

regulated products must undergo testing and inspection by an approved laboratory, receive a certification of compliance with technical standards, and then receive prior regulatory approval before sale

prior certification

regulated products need only undergo testing or inspection and certification testing lab certification remains in file no regulatory approval needed prior to import or sale

Sanitary measures

rules to protect human and animal health, safety, and quality includes spread of pathogen/disease

Phytosanitary measures

rules to protect plant safety or quality includes spread of pathogen/disease

government procurement

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

American National Standards Institute (ANSI)

A private, non-profit organization that coordinates the development and use of a voluntary consensus standards in the United States. Maintains an online "standards portal" that gives firms access to english translations of standards and technical regulations from China, India, and Korea, as well as various US standards in English, Mandarin, and Korean

Special Drawing Right (SDR)

A world currency created by the International Monetary Fund (IMF) to replace gold as a world standard. Valued by a "basket" of 5 major national currencies, the SDR has been called "paper gold."

market access agreements

Agreements that provide exports of goods and services with market access to foreign countries in following areas: 1) Technical Barriers to trade (include local/national standards) 2) Government procurement of goods and services 3) Trade in services (Including: consulting, engineering, banking/financial, insurance, telecom, and the professions 4) Trade in agricultural products 5) Trade related investment measures 6) Trade related aspects of IP rights

European Communities - Measures Concerning Meat and Products (Hormones)

EC banned the sale of beef from cattle grown with hormones due to popular demand. Claimed it was to protect public health. US complained ban violated GATT and issued retaliatory tariffs. (took away when went to WTO panel) US argued ban was unlawful under the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS agreement) and that the ban was not based on scientific principles, and it made trade more restrictive than necessary EC argued that measure offered equal access to EC market for all 3rd country animals without hormones, also public health Court: Ban violates SPS agreement. Where an internationally accepted standard exists permitting a certain level of hormone the EC ban violates that. If not international standard existed it would still violate because not base on risk assessment using scientifically accepted principles

Least Restrictive Trade

Principle of international trade law states that 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

Thailand - Restrictions on Importation of Cigarettes

Thai government restricts import of cigarette importing except by license. Only government owned Thai Tobacco has license and rarely imports tobacco products US complains to WTO saying restriction violates GATT article XI and that restriction is "more than necessary to protect human health" Thailand argues that the law was to control smoking and to prevent US cigarettes with all their chemicals in them from causing more harm to Thai people than Thai cigarettes Court: there are other GATT conforming ways to control cigarettes and achieve the public health goals that were the cause of the original ban. The current ban is in violation of GATT article XI and XX (b).

United States - Section 301-310 of the Trade Act of 1974

The EC wanted to review whether US Sections 301-310 (the Act) violated GATT dispute settlement procedures. The Act permits USTR to investigate possible violations of GATT or other international trade agreements, to negotiate a settlement of a dispute, and to request WTO DSB if necessary. Act also allows USTR to impose retaliatory tariffs or other trade sanctions either unilaterally or if authorized by WTO DSB. EC argued act violated WTO rules. Court: Sections 301-310 of US Trade Act of 1974 were found to be valid under GATT. Clarified that US can only impose retaliatory tariffs against WTO members only when authorized by DSB.

Design Standards

characteristics that govern how a product should be designed EX: product standards in japan have turned into these

Product Standard

voluntary guideline for product characteristics established by a recognized private or industry organization or association