GATT Law Memorandum - Assignment Example

GATT law memorandum Name: Course: Instructor: Date: Introduction The article defines marketing segmentation as a complex process that starts with two phases that should be conversant with the WTO and the GATT protocols. The article argues that although trading segmentation is increasingly becoming a buzz word, On the other hand, International trade involves the exchange of goods; services and capital across international borders. International business law is believed to be, the act of observing the rule of law in the business arena. It involves focusing on economies and the law, tariffs, taxes, and licensing (Rivers, Theodore, 345). International business law varies from state to state but bound by one major law which the WTO. In relation to Paradiso state and according to Article 3 of the WTO 1945, the minister is therefore advised to begin with the seeking of the legal grounds before engaging with the broad principles of GATT which imply to the general agreement on tariffs and trade which regulated the trading of the goods between the member states. In addition to this, the Paradiso state minister will also consider the general agreement on trade in services (GATS). The member state is then supposed to come to the agreements and the annexes that do basically deal with the requirements of the specific issues that have been outlined by the state. After this, the state will then have to commit itself in the lengthy and the detailed schedules which are meant to govern specific foreign products and the relevant service providers and the way in which they are supposed to access their markets. This will be done through the binding commitment form on tariffs for the goods in general and the inclusion of tariffs and the quotas for specific agricultural goods. According to GATT regulations or agreement, the member commitment form will have to indicate how much access the service providers will be allowed to some specific sectors which are accompanied by a list of the service providers and the type of service they are rendering (Chaundry, A. 2002, p. 79). Recommendations to the trade minister’s case based on the two protocols In regard to section 4 (a) and Article 3 (b) of the GATT/WTO treaty, it clearly states that the set rules regarding particular member states in this context shall not exceed. This therefore implies that the minister is within his legal rights to demand for the application of the controlled investment by any member states within the treaty. This shall thereby be clearly outlined in the agreement form that will be signed between the contracting member states for the carrying out of the trade. Paradise being a developing country, there shall be a difference in the in reference to the most favored-nation and the preferential rates that are provided there in as this is said to have come into effect on April 10, 1947 and in respect to the charges on any of the products imported. According to article I of GATT, I strongly believe that the minister is right to present the issues at stake in the ministerial meeting for review and thereby seek permission to be granted the legal rights set by the WTO and the GATT to implement the proposed business operational terms between Paradiso and other member countries who are signatories the treaty. Paradiso being a third world country, its requisition therefore may be advised quickly due to the desire of the two treaties in the development of developing countries that are member states of the protocol. The mergin of preference in this context refers to the difference between the most favored member states duty rates and the preferential duty rates for the same products but not having an appropriate relation in those rates. Its also important for the minister to note that under the February 1996 car program, it is said that the granting of the benefits of the customs duty to the parts and the components was conditional to their being used in Indonesia which is a member state of the WTO, it was conditional and limited to one pioneer company that was producing cars. Another condition was basically the meeting of the local content as per the country requirements and local target. In relation to this, the minister would be too under the treaty rights to raise these demands and with no questionable double would be applicable basing on the country condition and can therefore be effected between the contracting member states of WTO/GATT. And for reasons that this condition is not consistent with the provisions in Article 1:1 of GATT, Paradiso minister should take advantage of this fact and implement this for the benefit of the trade between his country and member state of the WTO that its being contracted to. According to Article 1:1, it demands that if a member wishes to grant any advantage to the product that is originating from territory of another country, then such an advantage must be accorded with immediate effect and unconditionally to the like products that are originating from territories of all other members in the treaty. In addition to this, Article 1:1 is purposely meant to ensure unconditional MFN treatment where it considers the unconditional accord of the third world countries or developing member states within the WTO treaty and therefore it further adds that the extension this privilege may not be made subject to conditions with respect or other situational factors to those countries. Therefore this advantage given to a particular member product has to be accorded to like other WTO member products without subjection to discrimination based on origin (Hoda, A. 1987, 218). The sale of motorbikes by the Paradiso state to other member states will depend on the agreement between the contracting parties in the deal although it will be directed by the provisions of the protocols in the treaties. Because the minister is seeking legal grounds to supply his locally assembled motorbikes to developed countries, its upon him and the contracting member state to determine whether the products that are being supplied meet the requirements of the state that the Paradiso state wish to export its motorbikes, under the WTO, developed member state may accept the products from developing countries at certain tariffs although this was set in place to try and develop the economy of developing countries but the issue of meeting certain thresholds does matter too in the protocol, if at all the target country regulations will favor the goods from developing countries. WTO and GATT has provisions that govern trade between member states but does not manipulate internal trade rules set by any sovereign governments and therefore this implies that the supply of the motorbikes by the Paradiso state to the developed state will be entirely based on the agreement forms signed between the two member states although it is somehow protected by GATT. Under these provisions, the minister is therefore entitled to present his issue but its conclusion will be based on the trade contracting parties, if GATT gives him a go ahead then the member states that will be in contract with Paradiso will then determine the terms of the business in relation to the standards of the imports and exports. In regard to tariff waiving, Article 1 of the General Agreement states that all the contracting parties may adopt more different and favorable conditions for developing countries and may limit such conditions to other member states (36). In accordance with the Genève system of preference, preferential tariff should therefore be accorded by developed countries to products from other contracting parties that are classified within the developing countries this is therefore supposed to be enjoyed by Paradiso which is categorized among the developing countries. GATT too adds that the differential and more favorable treatment within its jurisdictions or protocol should be of concern to non-tariff measures which are governed by the provisions of the instruments that are wildly negotiated under its treaty. The minister of Paradiso is too under his rights to raise this and therefore he gets a support from 38 c which state that any global arrangements made by less developed contracting member states for elimination of the tariffs and in accordance with the procedures that have been reached by the contracting member states for products that have either been imported or exported to either of the parties in agreement. Alternatively, it states that a special favor can be given on the least developed member state by the developed member states in relation to either general or either specific measure that will in the end favor developing countries. According to Article 3 (a), favorable treatment may too be developed with the aim of facilitating and promoting the trade of the developing member states where member states may not raise any barriers that will create unnecessary difficulties for the running of trade of the other contracting members and this should not too compromise with the reduction of the tariffs and other binding factors in the treaty in trade in favor of a nation. This too provides the Paradiso minister with the legal rights to waive the tariffs between the agreed contracting member states basing on the terms between the two countries. This will too help developing countries have a controlled investment in the country and thus benefit the local people. Article 3c further adds that such treatments from the developed countries should be taken positively by developing countries in regard to development, trade needs for developing countries and financial aspect development which the Paradiso state is ready to embrace (Hodges, 1945, p. 218). In conclusion, the provisions of part II of GATT 1994, all the ministers’ requests are admissible before the general WTO ministerial and the GATT assembly. This allows him to table any terms that the member states wants to have considered basing on the member states recommendations and resolutions. Although some of them may not be applicable before the ministerial panel discussion, the act states the member shall forward its desired recommendations before the ministerial panel for review after every five years and even it will to be discussed before the panel, its provisions are under the protocol and this will hence protect its terms of operation with the trade partners they are in business corporation with. It prohibits the use, lease or the sale of the foreign built or products that have been reconstructed in foreign country in the commercial applications between the points in neither the national waters nor even the waters of an exclusive economic zone. This provides the minister with mandate to rule out any products that are to be exported to another contracting state that may ruin the relation. The establishment of high rated export to developed countries is also provided in the provided in the protocol. This is too supported by the WTO in regard to the support of the developing countries, under certain conditions of this protocol, the new member states particularly developing countries are supposed to be given special terms that will help develop their economy as upcoming members of the trade treaty. Although with these provisions in the treaty, it’s upon the member states or the trade partners to come up with agreed terms that will help boost their trade, it is not upon the WTO to negotiate the terms for them, it only provides and protects the terms of operations between the contracting member states. In regard to the international market establishment and the product protection from unfair competition, it still has some provisions under the WTO/GATT but still the provisions do not determine strict terms between the contracting member countries. This is basically upon the two member states who will come up with the trade agreements basing on the agreement forms provided by the WTO. The minister is therefore supposed to present his case in the ministerial conference for the review of the case presented which is supposed to be not later than five years after the entry into the WTO agreement which will be done after every two years provided this exemptions will still be in force to check whether the conditions which led to the creation of the need for exemption do prevail. Part c states that and therefore demands that the minister will be entitled to a yearly submission of the detailed notification of the statistics that will include a five year moving average of the actual deliveries of the vessel as well as the additional like that of the use, repair, sale of the exemptions that are covered in the document that will have been presented by the minister (Yusuf, A. 1982, p. 49). Countries that started with 0n-demand business models as opposed to the traditional ones have proved to be more successful. It is therefore imperative that traditional manufacturers adopt more business model that are in tandem with their size and scale and can promote efficient production. References Chaundry, A. (2002): GATT: developing country perspective, Asian books Golt, S. (1978): Developing countries in GATT system. Trade policy research centre publishers, pp. 38 Hoda, A. (1987): developing countries in the international trading system. Allied publishers, pp. 218 Hodges, L.W (1945): The Advent of GATT. Series on Business, Society and the State. Chapel Hill: University of North Carolina Press scholar. Pp. 118 Yusuf, A. (1982): legal aspects of trade preferences for developing states, a study in the influence of development needs on the evolution of international law. Brill publishers, Pp. 49 Zeiler, T.W, (1999). Free trade, free world: the advent of GATT. UNC press books Pp. 76 Read More