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Introduction of a Quota System on Solar Plates in Brazil - Essay Example

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The paper "Introduction of a Quota System on Solar Plates in Brazil" states that the company is under a legal obligation not to provide such a ‘hardship bonus’ since that would amount to discrimination between similarly placed employees who are working with the expatriated employees in the UK…
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Introduction of a Quota System on Solar Plates in Brazil
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1 Brazil has claimed that the quota restriction has been imposed on the ground that the solar plates emit radiation, and so, presumably the restriction has been taken as a measure to protect public health and the environment. As per Article XX (b) of GATT 1994, Member states have the right to take such measures necessary to protect human, animal, or plant life or health, provided that such measures are not arbitrary or a disguised restriction on international trade and relate to all obligations under GATT 1994 including Article XI paragraph 1 thereof.

2 Consequently, Brazil’s imposition of quota restrictions on the import of solar plates would be inconsistent with WTO law unless Brazil can demonstrate that the measure is covered by Article XX of GATT 1994. Brazil cannot place reliance on Article XX of GATT, 1994 to defend the quota restriction placed on the import of solar plates for the following reasons: a). Requirement of scientific evidence and risk assessment: In order to claim the exception under Article XX of GATT 1994, there should be sufficient scientific evidence to conclude that there exists a risk for human life or health and that the measures taken by the particular Member State are necessary for relation to the objectives pursued.

3 The elaborate rules for the application of the provisions of Article XX of GATT 1994, including Article XX (b) thereof, are codified under the Agreement on Sanitary and Phytosanitary Measures (“SPS Agreement”).4 As per the SPS Agreement any measure designed to protect human, plant or animal health, should be based on scientific principles and should not be applied without sufficient scientific evidence.5 The SPS Agreement also requires the Member States to ensure that any such measures are based on an assessment of the risks to human, plant, or animal life, employing proper risk assessment techniques. In EC – Hormones, the Appellate Body referred to the requirements of “sufficient scientific evidence” and “risk assessment” explaining that.

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