Trade
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U.S.–Sections 301-310 of the Trade Act of 1974
EU argues that USTR can determine whether US rights have been denied even absent a DSB report. $ lost from such a violation cannot be compensated; Panel agrees, but recognizes that such a finding is not mandatory.
Panel: Under Art. XXIII, the WTO has exclusive authority to determine if an inconsistency has occurred, the reasonable time period in which a nation can implement DSB recommendations and the level of suspension of concessions that can be imposed as a result of a violation.
Legislation may be found to be violative, even if never applied; Thus, an Art. XXIII violation can occur by an ad hoc action or a general measure
Issue, then, is whether only mandatory or also discretionary national laws are prohibitedDoes § 304 violate DSU Art. XXIII?
Because §304 allows the U.S. to exercise its discretion whether to violate Art. XXIII, Panel finds it presumptively violative.
Panel finds it a “bad faith” action to maintain a system that provides for the possibility of circumventing the U.S.s WTO obligations, even if U.S. promises not to do so (counterargument: any country can, if it chooses, create and implement policies that violate WTO obligations; § 301 just streamlines process)
Though §301 is presumptively, a violation, an SAA submitted to Congress promises to base any determination of violation on DSB findings. Since the USTR could not find discrimination absent a DSB finding the same thing, §301 was all good.
TARIFF BINDINGS
Preferred trade barrier; most common; Major goal of GATT/WTO to turn trade barriers into tariffs
Three Types of Tariffs:
1) Ad Valorem: “Value added”; % of value of goods
Specific: Flat charge per unit/quantity of goods
Mixed: % plus charge per unit/quantity
Tariff Quotas: % levied depending on quantity of goods already allowed into country (e.g. X% up to Y quantity and Z% thereafter)
Benefits of Tariffs:
Tariffs more transparent; easy to see; quotas less so, more susceptible to corruption
Difficult to determine who gets/fills quotas
Effects of tariffs are clear in $ terms; allows super-efficient firms to make up for them
Provide $ to government, as opposed to firms like quotas do
Tariffs After GATT/WTO
Tariffs