WWeek 4

Question 1

What is a ‘like’ product? Art/ 3 GATT

Answer 1

• The physical characteristics
• Their nature and quality of the products
• Their end users: who’s using them?
• Consumers tastes and habits
• The tariffs classification.

Question 2

Fundamental rule: Verbod op maatregelen die concurrentie beperken.

Answer 2

Dumping: Het in een andere staat op de markt brengen van prodcuten onder de marktwaarde. Staat waar wordt gedumpt mag heffingen doorvoeren.

Subsidiering: Subsidies mogen geen schade veroorzaken aan andere staten.

Question 3

Wanneer uitzondering art. XX GATT?

Answer 3

• de maatregel moet daadwerkelijk strekken tot het beschermde belang. er moet tussen maatregel en belang voldoende verband bestaan.
• De maatregel moet noodzakelijk zijn. Geen redelijke alternatieven.
• Het belang van de lidstaat om een uitzondering te maken moet worden afgewogen tegen het belang van andere lidstaten om het verdrag na te leven.

Question 4

Dispute settlement body

Answer 4

• Members of the WTO commit to settling their trade disputes through the procedures that are set out in the dispute settlement body.
• Obligatory consultation - States have to negotiate 60 days
• Panel is ad hoc created. They write a report (no judgement).
• The report is adopted by dispute settlement body
• WTO appelate body is not functional due to US.
• EU and 16 members made an interim appeal arbitration arrangement.
• Dispute settlement body monitors prompt implementation of recommendations that are made by pannels.
• It oversees the retaliation process (if there is failure to comply with recommendation it is possible for complaining state to retaliate (take measures that are geared towards bringing about future compliance))

Question 5

Foreign direct investment

Answer 5

Long term investment of capital or other resources into a foreign jurisdiction..

Question 6

Calvo doctrine

Answer 6

Foreign investors were not entitled to any rights or privileges that were not enjoyed by their own nationals. Including recourse to international methods of dispute settlement.

Question 7

Hull formula (compensation for expropriation)

Answer 7

• Prompt: Without delay and with interest
• Adequate: the amount should be equivalent to the fair market value of investment immediately before the expropriation.
• Effective: The compensation has to be in a recognized useable currency that can be traded into the investors currency.

Question 8

When no fair and equitable treatment?

Answer 8

-Whether laws are:
- Transparant
-Consistent
- Reasonable
- Applied in uniased manner
- Respects legitimate expectations

• Treshold is very high: Very shocking absence of the rule of law

Question 9

ICSID

Answer 9

• Institutional framework trough which disputes are settled by ad hoc tribunals.
• Institutional framework for the chosen arbitrators by parties
• Consent is needed.