About the WTO
Annual Report 1998
The Annual report of the WTO focuses on the regular activities of the organization the details of its current structure staff and budget. The Annual report is published in the first half of each year.
Guide to the Uruguay Round Agreements
The Uruguay Round one of the longest and most complex economic negotiations ever undertaken was completed successfully in December 1993. Its results are embodied in nearly 30 legal agreements and a large number of supplementary decisions as well as a large number of highly detailed separate undertakings in which each country specifies the levels of trade restrictions which it promises not to exceed for thousands of different products or services.
Guatemala - Anti-Dumping Investigation Regarding Portland Cement from Mexico
On 15 October 1996 Mexico requested consultations with Guatemala in respect of an anti-dumping investigation commenced by Guatemala with regard to imports of portland cement from Mexico. Mexico alleged that this investigation was in violation of Guatemala’s obligations under Articles 2 3 5 and 7.1 of the Anti-Dumping Agreement.
Financial Services Trade, Capital Flows, and Financial Stability
This study argues that trade policies regarding financial services are an important—but often neglected—determinant of capital flows and financial sector stability. Financial services trade liberalisation which promotes the use of a broad spectrum of financial instruments and allows the presence of foreign financial institutions whilst not unduly restricting their business practices results in less distorted and less volatile capital flows and promotes financial sector stability. The study finds significant evidence in favour of this claim through an empirical analysis of GATS commitments in 27 emerging markets. For example countries which experienced financial crisis during 1991-97 show a combined indicator of financial services trade restrictiveness three times as high (= less favourable for financial stability) as countries without a crisis. The study' s findings have two important policy implications. Firstly liberalising international trade in financial services can be a market-based means to improve the "quality" of capital flows and to strengthen financial systems. This would complement other policies including financial regulation. Secondly even in countries where the financial system is weak and where immediate full-fledged financial sector liberalisation is not advisable certain types of financial services trade could be liberalised as such trade strengthens the financial system without provoking destabilising capital flows.
Japan - Measures Affecting Agricultural Products
On 7 April 1997 the US requested consultations with Japan in respect of the latter’s prohibition under quarantine measures of imports of certain agricultural products. The US alleged that Japan prohibits the importation of each variety of a product requiring quarantine treatment until the quarantine treatment has been tested for that variety even if the treatment has proved to be effective for other varieties of the same product. The US alleged violations of Articles 2 5 and 8 of the SPS Agreement Article XI of GATT 1994 and Article 4 of the Agreement on Agriculture. In addition the US made a claim for nullification and impairment of benefits.
Australia - Measures Affecting Importation of Salmon
On 5 October 1995 Canada requested consultations with Australia in respect of Australia’s prohibition of imports of salmon from Canada based on a quarantine regulation. Canada alleged that the prohibition is inconsistent with Articles XI and XIII of the GATT 1994 and also inconsistent with the SPS Agreement.
United States - Import Prohibition of Certain Shrimp and Shrimp Products
On 8 October 1996 India Malaysia Pakistan and Thailand requested consultations with the United States concerning a ban on importation of shrimp and shrimp products from these complainants imposed by the US under Section 609 of US Public Law 101-162. Violations of Articles I XI and XIII of the GATT 1994 as well nullification and impairment of benefits were alleged.
A Simple Trade Policy Perspective on Capital Controls
This note discusses capital controls using insights from the trade policy literature. It highlights some key issues that have been neglected in the current international debate on capital controls. Capital is tradable in the same way as many goods and services are. As a result much of the analysis pertaining to trade and trade policy in goods and services applies with equal force to capital movements. Free trade is typically the best trade policy no matter whether it is trade in goods services or capital. But if investor behaviour and the prevailing policy environment are not conducive to immediate free trade the choice of instrument for controlling capital flows becomes important. Tariffs and other price-related restrictions are preferable to quantitative restrictions or prohibitions because: (i) they cause less rent seeking and (ii) they do not insulate the domestic market from price changes and innovations in international markets.
Korea - Taxes on Alcoholic Beverages
On 4 April 1997 the EC requested consultations with Korea in respect of internal taxes imposed by Korea on certain alcoholic beverages pursuant to its Liquor Tax Law and Education Tax Law. The EC contended that the Korean Liquor Tax Law and Education Tax Law appear to be inconsistent with Korea’s obligations under Article III:2 of GATT 1994. On 23 May 1997 the US requested consultations with Korea in respect of the same measures complained of by the EC. The US also alleged violations of Article III:2.
Preferential and Non-Preferential Trade Flows in World Trade
This paper quantifies the extent of preferential trade as a share of total world trade in different regions of the world and for two periods. Results show that: i) preferential trade represented 40% of world trade in the period 1988-1992 and it slightly increased to 42% during the period 1993-1997; ii) during the second period agricultural products generally benefited more from the existence of preferential trade agreements than industrial products (maybe due to GATT-exemption); iii) the regional distribution of preferential trade is relatively uneven with a significant share of preferential trade in Western Europe (around 70 per cent) relatively low values in the Western Hemisphere (around 25 per cent) very low shares in Asia and Oceania (around 4 per cent) and average values in the rest-of-the-world (Eastern Europe and Africa); iv) the largest increase in shares of preferential trade between the two periods has occurred in the Western Hemisphere and in Eastern-Europe and Africa; v) at the country level there is an inverted-u-shape relationship between the share of preferential trade and the size and GDP per capita of individual countries; vi) countries which are highly open to trade tend to have a larger share of preferential trade on total trade in the period 1993-1997 suggesting that preferential and non-preferential trade can be seen as complements.
India - Patent Protection for Pharmaceutical and Agricultural Chemical Products - Complaint by the European Communities and their Member States
On 28 April 1997 the EC requested consultations with India in respect of the alleged absence in India of patent protection for pharmaceutical and agricultural chemical products and the absence of formal systems that permit the filing of patent applications of and provide exclusive marketing rights for such products. The EC contended that this is inconsistent with India’s obligations under Article 70 paragraphs 8 and 9 of the TRIPS Agreement (see similar US complaint in WT/DS50 where the Panel and Appellate Body reports were adopted on 16 January 1998).
Does Globalization Cause a Higher Concentration of International Trade and Investment Flows?
It has sometimes been argued that "globalization" benefits only a small number of countries and that this leads to greater marginalization of excluded countries. This paper argues that globalization is not necessarily biased towards greater concentration in international trade and investment flows. Marginalization is more likely to be explained by domestic policies in relatively closed countries. The paper shows that among relatively open economies the concentration of international trade and investment flows has declined over the last two decades whereas the opposite is true among relatively closed economies. Thus marginalization is not intrinsic to globalization. Key Words: Globalization international trade and investment flows concentration.
European Communities - Measures Affecting the Importation of Certain Poultry Products
On 24 February 1997 Brazil requested consultations with the EC in respect of the EC regime for the importation of certain poultry products and the implementation by the EC of the Tariff Rate Quota for these products. Brazil contended that the EC measures are inconsistent with Articles X and XXVII of GATT 1994 and Articles 1 and 3 of the Agreement on Import Licensing Procedures. Brazil also contended that the measures nullify or impair benefits accruing to it directly or indirectly under GATT 1994.
Indonesia - Certain Measures Affecting the Automobile Industry
On 3 October 1996 the EC requested consultations with Indonesia on 4 October 1996 and 29 November 1996 Japan requested consultations with Indonesia and on 8 October 1996 the US requested consultations with Indonesia concerning Indonesia’s National Car Programme. The EC alleged that the exemption from customs duties and luxury taxes on imports of “national vehicles” and components thereof and related measures were in violation of Indonesia’s obligations under Articles I and III of GATT 1994 Article 2 of the TRIMs Agreement and Article 3 of the SCM Agreement. Japan contended that these measures were in violation of Indonesia’s obligations under Articles I:1 III:2 III:4 and X:3(a) of GATT 1994 as well as Articles 2 and 5.4 of the TRIMs Agreement. The US contended that the measures were in violation of Indonesia’s obligations under Article I and III of GATT 1994 Article 2 of the TRIMs Agreement Article 3 6 and 28 of the SCM Agreement and Articles 3 20 and 65 of the TRIPS Agreement.
Exchange Rate Regimes and the Stability of Trade Policy in Transition Economies
This paper examines the interplay between exchange rate regimes and policies and commercial policy in six transition economies. In all these economies the rate of protection afforded domestic industry by the exchange rate has been eroded by high rates of inflation and insufficient growth in productivity. As a result there has been pressure on governments to increase trade barriers and each country examined has had recourse to various means of restricting imports. We argue that more flexible management of the nominal exchange rate would be a preferable way of dealing with the real appreciation of these countries’ currencies.
Guatemala - Anti-Dumping Investigation Regarding Portland Cement from Mexico
On 15 October 1996 Mexico requested consultations with Guatemala in respect of an anti-dumping investigation commenced by Guatemala with regard to imports of portland cement from Mexico. Mexico alleged that this investigation was in violation of Guatemala’s obligations under Articles 2 3 5 and 7.1 of the Anti-Dumping Agreement.
Australia - Measures Affecting Importation of Salmon
On 5 October 1995 Canada requested consultations with Australia in respect of Australia’s prohibition of imports of salmon from Canada based on a quarantine regulation. Canada alleged that the prohibition is inconsistent with Articles XI and XIII of the GATT 1994 and also inconsistent with the SPS Agreement.
European Communities - Customs Classification of Certain Computer Equipment
Complaints by the United States. These are in respect of the alleged reclassification by the European Communities for tariff purposes of certain Local Area Network (LAN) adapter equipment and personal computers with multimedia capability. The US alleged that these measures violate Article II of GATT 1994.
Can Bilateralism Ease the Pains of Multilateral Trade Liberalization?
Using the influence-driven approach to endogenous trade-policy determination we show how a free-trade agreement (FTA) with rules of origin can work as a device to compensate losers from trade liberalization. The FTA constructed in this paper is characterized by external tariff structures that are negatively correlated across member countries ensuring efficiency gains and through reduced average protection compatibility with the multilateral trading system's requirements. It is also politically viable and we demonstrate that in the countries concerned governments are willing to include its formation in the political agenda in spite of the fact that in equilibrium political contributions from producer lobbies decline after the agreement.
A Multilateral Agreement on Investment
Much has been recently written about the Multilateral Agreement on Investment (MAI) that has been negotiated by OECD countries. Perhaps even more has been said by the critics of those who would like to see an agreement of this kind extended among other countries. There has indeed been a great deal of "toing" and "froing" about the desirability of MAI and even misunderstandings about its merits. The principal question of this paper is whether there is any need for MAI. There are arguments in favour and against and this paper provides a short review. On balance the positive aspects of a multilateral agreement should outweigh the negative ones. The novelty of the paper is the attempt to address the critical voices. Given the lukewarm reaction in some countries it would seem sensible to pay more attention to these arguments – a feature that may only now become something of pressing need in the light of the difficulties encountered in the OECD negotiations.
Managing Capital Flows in Transition Economies with a Case-Study of Central and Eastern Europe
Management of capital inflows has unexpectedly become a major challenge in transition economies. These countries were expected to have an insatiable demand for foreign capital and an excess demand for capital inflows was therefore predicted by most observers. Foreign investors are also known to be very selective in their choice of markets and these countries were a big unknown. Moreover macroeconomic policy in these countries has been dominated by the objective of disinflation. We explain in this paper the reasons why some transition countries have been an attractive market for foreign investors and how important has foreign capital been for these countries. But the bulk of the paper provides an assessment of government policies to manage foreign capital inflows. We evaluate the policies against the background of different government objectives and in terms of the actual policy instruments used by the monetary authorities the timing and sequencing and the costs of these interventions. We argue that the initial responses to capital surges were poor; the authorities were reluctant to adjust their original policies and learn from the experiences elsewhere. Eventually their policy responses were changed but until the costs of inertia became too high. The authorities have effectively used sterilization policies more flexible exchange rate policies combined with tight monetary and fiscal policies. They also understood that an effective management of capital flows must start from well functioning markets and have been prepared to adopt structural policies whenever market imperfections could be identified.
Why are Trade Agreements more Attractive in the Presence of Foreign Direct Investment?
This paper argues that interests of nationals and owners of home-based foreign capital in the formation of a Trade Agreements (TA) are not antagonistic except under rather particular assumptions on initial tariffs among potential members. Further if initial tariffs are endogenously determined through an industry-lobbying process then TA that would have been immiserising in the absence of Foreign Direct Investment (FDI) may be welfare-enhancing in the presence of foreign-owned firms. The rationale is linked to the effect that the entry of FDI has on the pre-TA tariff through contributions to the incumbent government. These results may help explain recent integration programs between developed and developing countries.
Fiscal Policy Cycles and the Public Expenditure in Developing Countries
The paper studies empirically the fiscal policy instruments by which governments try to influence election outcomes in 24 developing countries for the 1973-1992 period. The study finds that the main vehicle for expansionary fiscal policies around elections is increasing public expenditure rather than lowering taxes and public investment cycles seem particularly prominent. Institutional mechanisms which constrain discretionary expenditure policies and which strengthen fiscal control are therefore worthwhile considering to prevent opportunistic policy making around elections.
United States - Import Prohibition of Certain Shrimp and Shrimp Products
On 8 October 1996 India Malaysia Pakistan and Thailand requested consultations with the United States concerning a ban on importation of shrimp and shrimp products from these complainants imposed by the US under Section 609 of US Public Law 101-162. Violations of Articles I XI and XIII of the GATT 1994 as well nullification and impairment of benefits were alleged.
Tying Governments' Hands in Commodity Taxation
In the 1970s taxation of "windfall" profits from primary products and intervention in trade and production tempted governments into expansionary fiscal policies whilst stifling the private sector and depressing growth. However the experience of the recent coffee boom has so far been more favourable: those African countries which liberalized and left a large share of the “windfall” with the private sector and which committed themselves to fiscal austerity via adjustment programs have shown better results in terms of fiscal stability private sector responses and economic growth than countries which did not reform. These findings suggest that constraints on discretionary government policies are desirable and that domestic institutions and international commitments could serve this purpose.
Multilateral Approaches to Market Access Negotiations
Market access negotiations in merchandise trade at the multilateral level cover tariffs and non-tariff measures (NTMs). While tariffs have been substantially reduced in earlier rounds they remain high in certain areas and further reductions involve a number of complex technical issues. Some formulae approaches not used in the Uruguay Round seem more favourable to developing countries. Elimination or phased reductions of NTMs in agriculture is one of the main areas for further market access negotiations in trade in goods. However most NTMs are now the subject to negotiations on the rules under which they may be applied e.g. in the areas of contingency protection and technical barriers to trade.
Transition Economies, Business and the WTO
Transition economies are going through a process of changing the role of the state allowing a greater role for the private sector. This is consistent with the market-oriented approach of the WTO. Remaining state agencies and enterprises will need to adapt their ways of doing business including in their approach to procurement of goods and services for economic and legal reasons. There is some hesitation about privatization as for foreign direct investment and where accepted about the precise timing. Where privatization of basic service monopolies occurs the role of the state shifts towards a regulatory function. In some private sector activities a non-interventionist approach to competition may be justified by market considerations while in others a pro-active policy may be necessary to ensure the benefits of economic liberalization.
Japan - Measures Affecting Consumer Photographic Film and Paper
On 13 June 1996 the United States requested consultations with Japan concerning Japan’s laws regulations and requirements affecting the distribution offering for sale and internal sale of imported consumer photographic film and paper. The US alleged that: the Japanese Government treated imported film and paper less favourably through these measures in violation of GATT Articles III and X. These measures nullify or impair benefits accruing to the US (a non-violation claim).
Argentina - Measures Affecting Imports of Footwear, Textiles, Apparel and Other Items
On 4 October 1996 the US requested consultations with Argentina concerning the imposition of specific duties on these items in excess of the bound rate and other measures by Argentina. The US contended that these measures violate Articles II VII VIII and X of GATT 1994 Article 2 of the TBT Agreement Article 1 to 8 of the Agreement on the Implementation of Article VII of GATT 1994 and Article 7 of the Agreement on Textiles and Clothing.
European Communities - Measures Affecting the Importation of Certain Poultry Products
On 24 February 1997 Brazil requested consultations with the EC in respect of the EC regime for the importation of certain poultry products and the implementation by the EC of the Tariff Rate Quota for these products. Brazil contended that the EC measures are inconsistent with Articles X and XXVII of GATT 1994 and Articles 1 and 3 of the Agreement on Import Licensing Procedures. Brazil also contended that the measures nullify or impair benefits accruing to it directly or indirectly under GATT 1994.
Financial Services and the WTO
This paper analyses the results of the financial services negotiations under the General Agreement on Trade in Services (GATS) at the World Trade Organization (WTO). It shows that the negotiations have contributed to more stable and transparent policy regimes in many developing and transition countries. The wide range of market access and non-discrimination commitments should advance the process of progressive liberalization. The commitments do not compromise the ability of countries to pursue sound macroeconomic and regulatory policies. However other aspects of the outcome do raise some concerns. First there has been less emphasis on the introduction of competition through allowing new entry than on allowing (or maintaining) foreign equity participation and protecting the position of incumbents. Secondly even where immediate introduction of competition was not deemed feasible not much advantage has been taken of the GATS to lend credibility to liberalization programmes by precommitting to future market access.
European Communities - Customs Classification of Certain Computer Equipment
Complaints by the United States. These are in respect of the alleged reclassification by the European Communities for tariff purposes of certain Local Area Network (LAN) adapter equipment and personal computers with multimedia capability. The US alleged that these measures violate Article II of GATT 1994.
Fiscal Policy Cycles and the Exchange Regime in Developing Countries
The paper studies empirically fiscal policies around elections in 25 developing countries as affected by the exchange regime. It is argued that countries with flexible exchange regimes are less likely to engage in expansionary fiscal policies before elections because such policies can result in devaluations and inflation which affects government popularity adversely. The empirical results show that governments indeed try to improve their re-election prospects with the help of expansionary fiscal policies only in countries with fixed exchange rates and adequate reserve levels. For some countries this raises doubts about the usefulness of fixed exchange rates for stabilizing the macro economy unless reforms of the institutional framework reduce the scope for election-oriented fiscal expansion.
Reform in Basic Telecommunications and the WTO Negotiations
This paper examines liberalization of the basic telecommunications sector in a number of Asian countries and the role of the General Agreement on Trade in Services (GATS) in this process. It begins by explaining the working of the GATS as a mechanism for multilateral liberalization efforts. It then presents a description of the reforms taking place in the telecom regimes of selected Asian countries and of the commitments these countries made in the recent GATS negotiations. The paper explores the reasons why governments have taken advantage of the GATS negotiations to make multilateral market-opening commitments even though they were not pursuing export interests. The paper also considers the limits to what was achieved by way of liberalization commitments in the negotiations. Allowing greater foreign equity participation without liberalizing the conditions of entry may raise national welfare concerns. Furthermore certain governments could have taken greater advantage of the opportunity under GATS to precommit to future liberalization.
European Communities - Measures Concerning Meat and Meat Products (Hormones)
On 28 June 1996 Canada requested consultations with the European Communities regarding the importation of livestock and meat from livestock that have been treated with certain substances having a hormonal action under Article XXII of the GATT 1994 and the corresponding provisions in the SPS Agreement TBT Agreement and the Agreement on Agriculture. Canada alleges violation of Articles 2 3 and 5 of the SPS Agreement; Article III or XI of the GATT 1994; Article 2 of the TBT Agreement; and Article 4 of the Agreement on Agriculture.
EU Import Measures and the Developing Countries
The EU's import policies towards developing countries are complex stemming from important sectoral and country variations in policy. Average tariffs are modest and while there are tariff peaks and escalation in some areas of interest to developing countries these are being reduced as a result of the implementation of the results of the Uruguay Round. The use of non-tariff measures has fallen particularly as a result of agricultural tariffication and is being further reduced in textiles and clothing. The elimination of VERs has not led to an increase in the use of alternative measures. Contingency protection falls more heavily in chemicals iron and steel certain textile items and certain electrical consumer goods and on Asian Central and Eastern European and former Soviet Union countries. The operation of various factors appears to be working to mitigate the use of trade defence measures in recent years helping to counter pressures that seem likely to arise as liberalization proceeds.
Regulatory Autonomy and Multilateral Disciplines
A major challenge for the multilateral trading system is to secure the benefits of trade liberalization without infringing on the freedom of governments to pursue legitimate domestic objectives. The difficulty lies in distinguishing between two types of situations. In one a non-protectionist government cannot prevent certain domestic policies from incidentally discriminating against foreign competitors. In the other a protectionist government uses a legitimate objective as an excuse to design domestic policies which inhibit foreign competition. The challenge is to devise rules which are sensitive to the difference between these two situations exonerating the former while preventing the latter. The approach suggested in this paper is to create a presumption in favour of the economically efficient policy measure with departures inviting justification.
India - Patent Protection for Pharmaceutical and Agricultural Chemical Products
On 7 April 1997 the US requested consultations with Japan in respect of the latter’s prohibition under quarantine measures of imports of certain agricultural products. The US alleged that Japan prohibits the importation of each variety of a product requiring quarantine treatment until the quarantine treatment has been tested for that variety even if the treatment has proved to be effective for other varieties of the same product. The US alleged violations of Articles 2 5 and 8 of the SPS Agreement Article XI of GATT 1994 and Article 4 of the Agreement on Agriculture. In addition the US made a claim for nullification and impairment of benefits.
Argentina - Measures Affecting Imports of Footwear, Textiles, Apparel and Other Items
On 4 October 1996 the US requested consultations with Argentina concerning the imposition of specific duties on these items in excess of the bound rate and other measures by Argentina. The US contended that these measures violate Articles II VII VIII and X of GATT 1994 Article 2 of the TBT Agreement Article 1 to 8 of the Agreement on the Implementation of Article VII of GATT 1994 and Article 7 of the Agreement on Textiles and Clothing.
European Communities - Regime for the Importation, Sale and Distribution of Bananas
Complaints by Ecuador Guatemala Honduras Mexico and the United States. The complainants in this case other than Ecuador had requested consultations with the European Communities on the same issue on 28 September 1995 (DS16). After Ecuador’s accession to the WTO the current complainants again requested consultations with the European Communities on 5 February 1996. The complainants alleged that the European Communities’ regime for importation sale and distribution of bananas is inconsistent with Articles I II III X XI and XIII of the GATT 1994 as well as provisions of the Import Licensing Agreement the Agreement on Agriculture the TRIMs Agreement and the GATS.
European Communities - Regime for the Importation, Sale and Distribution of Bananas
Complaints by Ecuador Guatemala Honduras Mexico and the United States. The complainants in this case other than Ecuador had requested consultations with the European Communities on the same issue on 28 September 1995 (DS16). After Ecuador’s accession to the WTO the current complainants again requested consultations with the European Communities on 5 February 1996. The complainants alleged that the European Communities’ regime for importation sale and distribution of bananas is inconsistent with Articles I II III X XI and XIII of the GATT 1994 as well as provisions of the Import Licensing Agreement the Agreement on Agriculture the TRIMs Agreement and the GATS.
India - Patent Protection for Pharmaceutical and Agricultural Chemical Products
On 7 April 1997 the US requested consultations with Japan in respect of the latter’s prohibition under quarantine measures of imports of certain agricultural products. The US alleged that Japan prohibits the importation of each variety of a product requiring quarantine treatment until the quarantine treatment has been tested for that variety even if the treatment has proved to be effective for other varieties of the same product. The US alleged violations of Articles 2 5 and 8 of the SPS Agreement Article XI of GATT 1994 and Article 4 of the Agreement on Agriculture. In addition the US made a claim for nullification and impairment of benefits.
European Communities - Measures Concerning Meat and Meat Products (Hormones)
On 26 January 1996 the United States requested consultations with the European Communities claiming that measures taken by the EC under the Council Directive Prohibiting the Use in Livestock Farming of Certain Substances Having a Hormonal Action restrict or prohibit imports of meat and meat products from the United States and are apparently inconsistent with Articles III or XI of the GATT 1994 Articles 2 3 and 5 of the SPS Agreement Article 2 of the TBT Agreement and Article 4 of the Agreement on Agriculture.
European Communities - Measures Concerning Meat and Meat Products (Hormones)
On 28 June 1996 Canada requested consultations with the European Communities regarding the importation of livestock and meat from livestock that have been treated with certain substances having a hormonal action under Article XXII of the GATT 1994 and the corresponding provisions in the SPS Agreement TBT Agreement and the Agreement on Agriculture. Canada alleges violation of Articles 2 3 and 5 of the SPS Agreement; Article III or XI of the GATT 1994; Article 2 of the TBT Agreement; and Article 4 of the Agreement on Agriculture.
Canada - Certain Measures Concerning Periodicals
On 11 March 1996 the United States requested consultations with Canada concerning certain measures prohibiting or restricting the importation into Canada of certain periodicals. The US claimed that the measures are in contravention of GATT Article XI. The US further alleged that the tax treatment of so-called “split-run” periodicals and the application of favourable postage rates to certain Canadian periodicals are inconsistent with GATT Article III.
Mercosur
MERCOSUR is one of the most important examples of renewed world-wide interest in regional trade agreements. It may be seen as a consolidation of unilateral reforms undertaken in conjunction with major macroeconomic adjustments. The paper reviews the objectives of MERCOSUR and assesses its achievements focusing on institutions and fulfilment of commitments. It concludes that considerable progress has been made to achieving a customs union and even beyond that towards a common (but not EU-style single) market but there are a number of areas where progress is still to be made.
United States - Measure Affecting Imports of Woven Wool Shirts and Blouses from India
On 30 December 1994 India requested consultations with the United States concerning the transitional safeguard measure imposed by the United States. India claimed that the safeguard measure is inconsistent with Articles 2 6 and 8 of the ATC.
Canada - Certain Measures Concerning Periodicals
On 11 March 1996 the United States requested consultations with Canada concerning certain measures prohibiting or restricting the importation into Canada of certain periodicals. The US claimed that the measures are in contravention of GATT Article XI. The US further alleged that the tax treatment of so-called “split-run” periodicals and the application of favourable postage rates to certain Canadian periodicals are inconsistent with GATT Article III.
Brazil - Measures Affecting Desiccated Coconut
On 27 November 1995 the Philippines requested consultations with Brazil in respect of a countervailing duty imposed by Brazil on the Philippine’s exports of desiccated coconut. The Philippines claimed that this duty was inconsistent with WTO and GATT rules.
United States - Restrictions on Imports of Cotton and Man-Made Fibre Underwear
On 22 December 1995 Costa Rica requested consultations with the United States concerning US restrictions on textile imports from Costa Rica. Costa Rica alleged that these restrictions were in violation of the ATC agreement.