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Import Export Restrictions | Free International Law Essay

 

International Business Law

In this coursework I have been asked to complete one section of the coursework, which relates to Article XI of GATT and also discussing briefly any disputed cases within the Article XI of GATT.

In order for me to support my coursework I will browse through various academic articles, journals, books and other forms of resources, which would help me to complete the coursework given.

Q1 Find the text of Article XI of GATT and explain briefly the content of the article. Explain how you found the text of the article.

A:

Article XI: General Elimination of Quantitative Restrictions

• No prohibitions or restrictions other than duties, taxes or other charges, whether made effective through quotas, import or export licences or other measures, shall be instituted or maintained by any contracting party on the importation of any product of the territory of any other contracting party or on the exportation or sale for export of any product destined for the territory of any other contracting party.

• The provisions of paragraph 1 of this Article shall not extend to the following:

• Export prohibitions or restrictions temporarily applied to prevent or relieve critical shortages of foodstuffs or other products essential to the exporting contracting party;

• Import and export prohibitions or restrictions necessary to the application of standards or regulations for the classification, grading or marketing of commodities in international trade;

• Import restrictions on any agricultural or fisheries product, imported in any form, necessary to the enforcement of governmental measures which operate:

• To restrict the quantities of the like domestic product permitted to be marketed or produced, or, if there is no substantial domestic production of the like product, of a domestic product for which the imported product can be directly substituted; or

(ii) To remove a temporary surplus of the like domestic product, or, if there is no substantial domestic production of the like product, of a domestic product for which the imported product can be directly substituted, by making the surplus available to certain groups of domestic consumers free of charge or at prices below the current market level; or

(iii) To restrict the quantities permitted to be produced of any animal product the production of which is directly dependent, wholly or mainly, on the imported commodity, if the domestic production of that commodity is relatively negligible.

Article XI of GATT explains any contracting party applying restrictions on the importation of any product pursuant to subparagraph (c) of this paragraph shall give public notice of the total quantity or value of the product permitted to be imported during a specified future period and of any change in such quantity or value. Moreover, any restrictions applied under (i) above shall not be such as will reduce the total of imports relative to the total of domestic production, as compared with the proportion that might reasonably be expected to rule between the two in the absence of restrictions. In determining this proportion, the contracting party shall pay due regard to the proportion prevailing during a previous representative period and to any special factors which may have affected or may be affecting the trade in the product concerned.

Q2 List cases decided by the WTO dispute panels and Appellate Body relating to the interpretation of Article XI and briefly explain what two of the cases stated about the interpretation of Article XI. Explain how you found this information.

A: In case of Japan – Semiconductors, the WTO dispute panel observed that the interpretation of Article XI of GATT ‘was comprehensive: it applied to all measures, instituted or maintained by a contracting party prohibiting or restricting the importation, exportation or sale of export of products other than measures that take the form of duties, taxes or other charges'. (The report of the GATT Panel on Japan – Trade in semiconductors, BISD 355/116, 1989).

The WTO panel in case of India – Agricultural Products, has endorsed this broad interpretation. Which than further emphasised the broadness term of ‘restriction'. (The report of the WTO panel on India – Quantitative Restrictions on Imports of Agricultural, Textiles and Industrial Products, WT/DS90/R, 1999).

Therefore a broad interpretation has been given in Article XI of GATT 1994, also a note in Article III of GATT 1994 considerably restricts the applications of Article XI of GATT 1994 the notes which were provided ‘any of the measures listed in Article III: 1 which applies to an imported product and the like domestic products and is collected or enforced in the case of imports at the time or point of importation, is nevertheless to regarded as an internal tax or other internal charge or a law regulation or requirement of the kind referred to in paragraph 3 in Article III. (Article XI and Article III of GATT 1994).

On the basis of the Article III of GATT 1994, the WTO panel found that in case of EC – Asbestos that Article XI of GATT does not apply to legislation of a WTO member, prohibiting or restricting the

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