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BLAW 3700 > CH 2: The World Trade Organization > Flashcards

CH 2: The World Trade Organization Flashcards

1
Q

What does GATT stand for?

A

General Agreement on Tariffs and Trade

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2
Q

when was GATT formed?

A

1947

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3
Q

What was the basis for the international trading system until WTO?

A

GATT

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4
Q

What does WTO stand for?

A

World Trade Organization

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5
Q

When was WTO formed?

A

1995

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6
Q

What were the two roles anticipated for GATT at its creation?

A
  1. to develop a code of rules governing trade relations among participating countries.
  2. to provide a forum where countries could discuss trade disputes and address trade related issues.
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7
Q

What are “rounds” in relation to WTO and GATT?

A

major negotiating sessions

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8
Q

How long did the Urguay Round last?

A

from 1987 - 1993

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9
Q

How many countries signed to create the WTO?

A

100

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10
Q

What is the objective of the WTO as outlined in the preamble?

A

raising standards of living, ensuring full employment and a large and steadily growing volume of real income and effective demand, and expanding the production of and trade in goods and services, while allowing for the optimal use of the worlds resources in accordance with the objective of sustainable development.

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11
Q

What do WTO members agree to? (Action and code wise)

A

to enter into reciprocal and mutually advantageous arrangements directed to the substantial

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12
Q

What circumstances led to the creation of GATT?

A

1930s protectionist trade policies in most nations.
The great depression
To boost domestic economies, some nations: imposed imported tariffs, imposed import quotas and implemented exchange controls.
This developed trading blocs
WW2, stimulated economies globally.

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13
Q

What is GATT?

A

A collection of trade agreements.

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14
Q

How many countries signed GATT?

A

23

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15
Q

What did GATT promote?

A

open markets
competition protected by agreed-upon rules.

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16
Q

What did GATT’s rule dictate?

A

rules for member countries to expand trade by making voluntary trade concessions that are:
transparent
multilateral &
discouraging trade discrimination against other trading partners (that are members)

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17
Q

What was GATT primary goal after WW2?

A

Reducing tariffs

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18
Q

What are the three fundamental rules of GATT?

A

Binding concessions rule
Most-favoured nations
national treatment rule

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19
Q

What is the most favoured nation rule?

A

a tariff negotiated between any two GATT countries should be available to all other member countries

20
Q

What is the binding concession rule?

A

Once a country lowers a tariff it becomes bound and the country is obligated not to increase the tariff above the negotiated bound level.

21
Q

What are the two exceptions of the Most Favoured Nation Rule?

A

Generalised system of preference (GSP), and the acceptance of free trade areas and customs unions.

22
Q

What is the Generalised system of preference? (GSP)

A

The system that provides that GATT members may give preferential treatment to exports from developing countries

23
Q

What is the national treatment rule?

A

The rule that once goods and services or investemnt are imported into a member country they must be treated the same way as domestic goods, services and investment; thus internal taxes and health and safety standards must be uniform for foreign and domestic concerns.

24
Q

How does a WTO tribunal look at a product to determine the national treatment rule?

A

physical characteristics
end uses
perceptions by consumers, including cross-substitutability
tariff classification

25
Q

What is dumping?

A

A company selling at a price lower than that in the home market.

26
Q

What are subsidies?

A

Government help given to producers, manufacturers or exporters

27
Q

What are safeguards?

A

a temporary limit of imports intended to protect domestic industry from surge in imports

28
Q

What are the three elements that must be present to warrant anti-dumping?

A
  1. The fact that the product is being sold at less than the normal price in the home market must be proven
  2. A calculation of the extent of the dumping. The margin on the product being dumped must be more than 2 percent the export price of the product in order for a government to take anti-dumping action.
  3. Proof that dumping is causing or is threatening to cause injury to the domestic industry.
29
Q

What are anti-dumping duties?

A

duties imposed on the country dumping that are above the usual duties.

30
Q

Who investigates allegations of dumping and subsidies? And where are they pursuant to?

A

The CBSA and the Canadian International Trade Tribunal (CITT)
Special Import Measures Act (SIMA)

31
Q

How long may safeguards be imposed up to?

A

Four year period

32
Q

How do you prove arbitrary or unjustified discrimination?

A
  1. A measure must result in discrimination
  2. discrimination must be arbitrary or unjustified in nature
  3. discrimination must occur between countries where the same conditions prevail
33
Q

What are the circumstances of exceptions?

A

necessary to protect public morals
necessary to protect human, animal, plant life or health
imposed for the protection of national treasures of artistic, historic or archaelogical value
relating to the conservation of exhaustable natural resources

34
Q

What is the process and production method?

A

The way a product is made or harvested

35
Q

What is a product related PPM?

A

standards set by an importing country based on the particular properties of the goods themselves; the standards may thus apply equally to imported and domestic goods.

36
Q

What are non-product related PPMs?

A

processing or production methods that are not discernible in the properties or characteristics of the finished product.

37
Q

What does the Sanitary and Phytosanitary Measures Agreement (SPS Agreement) do?

A

Allows members to take scientifically based measures to protect public health, provided that such measures are based on internationally established guidelines and risk-establishment procedures.

38
Q

what is the precautionary principle?

A

authorization or taking proactive action before there is complete scientific proof of risk.

39
Q

what is a free trade area?

A

An arrangement whereby two or more countries agree to remove, substantially all duties and restrictions of commerce among them but retain independent schedules for tariffs and other barriers applicable to other countries

40
Q

What is a customs union?

A

an agreement in which tariffs and trade barriers are eliminated among member countries and a common external tariff is adopted.

41
Q

What is the World Intellectual Property Organization?

A

A subset of the UN concerned with intellectual property

42
Q

How is Intellectual Property defined?

A

creations of the mind

43
Q

What are the two categories of intellectual properties?

A

industrial property: patents, trademarks, industrial designs etc.
Copyright: literary and artistic works

44
Q

What is the resolution process for disputes handled by the WTO?

A
  1. Consultations (60 Days)
  2. Panel Established by the DSB
  3. Terms of reference; composition
  4. Panel Examination; report issued to the DSB (6-9 months)
  5. Appellate review; report issued to the DSB (60-90 Days)
  6. DSB adopts panel/appellate report
  7. implementation
  8. Compliance issues (retaliation)
45
Q

What have been the benefits of the WTO?

A

Positive economic benefits and contributed to an increase in world GDP
their dispute-settlement system is considered to be one of the only effective state to state dispute resolution mechanisms internationally
The WTO makes global trade more consistent, predictable, transparent and enforceable.

BLAW 3700 (4 decks)

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