SOUTH ASIAN UNIVERSITY FACULTY OF LEGAL STUDIES SYLLABUS INTERNATIONAL TRADE LAW COMPULSORY PAPER-III LL.M PROGRAMME WINTER SEMESTER
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1 SOUTH ASIAN UNIVERSITY FACULTY OF LEGAL STUDIES SYLLABUS INTERNATIONAL TRADE LAW COMPULSORY PAPER-III LL.M PROGRAMME WINTER SEMESTER Course Title: INTERNATIONAL TRADE LAW Course Code: LW-4 Course Instructor/s: Dr. V.G Hegde and Dr Prabhash Ranjan Course Duration: One Semester Credit Units: 4 Medium of Instruction: English Prerequisites: Nil Precursors: Nil Equivalent Courses: N/A OBJECTIVE The International Trade Law has gained more importance in recent decades in the wake of unprecedented focus of nations on developing close international economic relations. Initially, the General Agreement on Tariffs and Trade (GATT), 1947 provided the necessary setting, norms and regulations for the evolution of international trade law. However, over the last few decades, the GATT system has undergone a significant change, although some of the basic norms for regulating international trade remain intact. Some of these basic norms, for example, include Most-Favoured Nation Treatment (MFN), National Treatment (NT), Safeguard Measures, Anti-dumping norms, prohibition of Quantitative Restrictions and subsidies, trade issues concerning developing countries, settlement of trade disputes within the GATT/WTO system. GATT system, despite it being dominated by major trading countries, attempted to bring about several improvements in its operation through various rounds of negotiations. Several rounds of such negotiations have been held to bring down not only tariffs, but also to bring some kind of a balance into the global trading system. Concerns of newly emerging developing countries were sought to be accommodated in some of these rounds, although implementation of these `special and differential treatment provisions remain largely ineffective. The Uruguay Round of negotiations, eighth in the series of such rounds, brought about major changes. The World Trade Organisation (WTO) as a permanent global trade institution was created. Besides 1
2 the creation of the WTO, the Uruguay Round of negotiations brought on board several new issues into the negotiating agenda of the GATT/WTO system such as, for instance, intellectual property rights, investments and services. The GATT system which was hitherto was primarily concerned with the tariff reduction of goods that are being either exported or imported, now with the advent of WTO, the new norms sought to regulate several new areas in international trade law. With the rapid development of technology in several areas the nature and functioning of international trade also transformed. Considering the range of topics and the interpretative techniques used in its dispute settlement process the relevance and reach of WTO has increased manifold. The rapid process of globalization also created the conditions for the dominant role for the WTO in global trade affairs. Therefore, it is important to understand both the legal and institutional framework of GATT/WTO. This course will attempt to do that. Further to this, the increase in the membership of the WTO in the last several years also shows its growing importance in the global trading system. The majority membership of the WTO now consists of developing countries and this membership has resulted in creating binding trade obligations. The implementation of these obligations created by the WTO Agreements has been presenting several difficulties for the developing countries. These obligations, it is being argued, have shrunk the policy space for the countries to manage their trade and economies taking into account their own realities. The obligations created for the WTO members of the South Asian countries will have special reference. Bangladesh, India, Nepal, Pakistan and Sri Lanka are the members of WTO and have been subject to varied kinds of obligations under various WTO covered agreements. The other South Asian countries, Afghanistan for example, is in the process of joining WTO as a member. Implementation issues have assumed importance in the context of these South Asian Countries. The South Asian Free Trade Area (SAFTA) has been functioning, albeit with certain constraints. Some of these regional trade issues in the context of South Asia will be addressed. Besides these aspects, the course will focus on various aspects of international trade law with specific focus on the GATT/WTO Covered Agreements. The applicability of international law to the working and interpretation of the WTO agreements will also form a part of the course. The focus of the course will be to familiarize students with the nature and structure of international rights and obligations in the field of international trade with specific focus on South Asia. COURSE CONTENT WEEK-1 [VGH] An Overview - Concept and Nature of International Trade Law Origins - Theories of International Trade, Globalization and International Trade. WEEK-2 [VGH] Historical Background of the General Agreement on Tariffs and Trade (GATT, 1947) - Evolution of WTO GATT 1994 and WTO South Asia and GATT/WTO 2
3 WEEK-3 [VGH] Legal Structure, Principles and working of WTO and Its Covered Agreements Understanding the structures of the Covered Agreements Issues concerning implementation of WTO agreements and rulings WEEK-4 [VGH] Most-favoured Nation Treatment (MFN) History and Basic issues Grandfather clauses Definitional Issues - GATT/WTO cases concerning MFN WEEK-5 [VGH] National Treatment scope and application History and Basic issues GATT/WTO cases concerning National Treatment. WEEK-6 [VGH] Like products scope and application aim and effect test the product and process distinction WEEKS 7 & 8 [PR] Plurilateral Trade Agreements (PTAs) (Article XXIV of GATT) What are PTAs and Customs Union (Article XXIV of GATT) What conditions have to be satisfied for a PTA to be consistent with Article XXIV of GATT (internal and external trade requirements) Notification and Transparency mechanism for PTAs SAFTA Compulsory Readings: S Lester, B Mercurio et al (2012), World Trade Law: Text, Materials and Commentary (Hart Publishing: Oxford), World Trade Organization (CUP: Cambridge),
4 Key Cases: Argentina Safeguard Measures on imports of Footwear, Appellate Body Report, WT/DS121/AB/R, adopted on 12 January 2000 Turkey Restrictions on Imports of Textile and Clothing Products, Appellate Body Report, WT/DS34/AB/R, adopted on 19 November WEEKS 9 &10 [PR] Imposition of Anti Dumping Duties under the Anti Dumping Agreement Dumping and Anti dumping Measures; Challenging anti dumping measures; Concept of Zeroing in anti dumping investigations; Determination of Injury and demonstration of a causal link Standard of review in the Anti Dumping Agreement. Compulsory Readings World Trade Organization (CUP: Cambridge), and Simon Lester, B Mercurio et al (2012), World Trade Law: Text, Materials and Commentary (Hart Publishing: Oxford), Key Cases: United States Continued Dumping and Subsidy Offset Act of 2000, Appellate Body Report, WT/DS217/AB/R adopted 27 January 2003 United States Anti Dumping Act of 1916, Appellate Body Report, WT/DS136/AB/R, adopted 26 September European Communities Anti Dumping Duties on Imports of Cotton Type Bed Linen from India, Appellate Body Report, WT/DS141/AB/R, adopted 12 March United States Measures Relating to Zeroing and Sunset Reviews, Appellate Body Report, WT/DS322/AB/R, adopted 23 January
5 WEEKS 11 & 12 [PR] Imposition of Safeguard measures under the Agreement on Safeguard Measures (Week 11) Relationship Between Article XIX of GATT and the Agreement on Safeguards Conditions to be satisfied for imposition of Safeguard Measures Injury requirement in safeguard measures Causation requirement Parallelism in imposition of safeguard measures Characteristics of Safeguard measures Compulsory Readings S Lester, B Mercurio et al (2012), World Trade Law: Text, Materials and Commentary (Hart Publishing: Oxford), World Trade Organization (CUP: Cambridge), Key Cases: Argentina Safeguard Measures on imports of Footwear, Appellate Body Report, WT/DS121/AB/R, adopted on 12 January 2000 United States Definitive Safeguard Measures on Imports of Wheat Gluten from the European Communities, WT/DS166/AB/R, adopted 19 January United States Definitive Safeguard Measures on Imports of Circular Welded Carbon Quality Line Pipe from Korea, WT/DS202/AB/R, adopted on 8 March United States Definitive Safeguard Measures on Imports of Certain Steel Products, WT/DS248/AB/R, adopted 10 December WEEK 13 [PR] Imposition of Technical Barriers to Trade 5
6 What standards of the TBT Agreement a country has to satisfy while imposing technical requirements on trade? TBT Agreement Article 2.1 National Treatment and Most Favoured Nation (meaning of treatment no less favourable ) TBT Agreement Article 2.2 More Trade Restrictive than Necessary Obligation to base technical barriers to trade on international standards Compulsory Readings: S Lester, B Mercurio et al (2012), World Trade Law: Text, Materials and Commentary (Hart Publishing: Oxford), World Trade Organization (CUP: Cambridge), Key Cases: Readings: European Measures Measures Affecting Asbestos and Asbestos Containing Products, Appellate Body Report, WT/DS135/AB/R, adopted 5 April 2001 United States Measures Affecting the Production and Sale of Clove Cigarettes, Appellate Body Report, WT/DS406/AB/R, adopted 24 April United States Certain Country of Origin Labelling (COOL) Requirements, Appellate Body Report, WT/DS384/AB/R/WT/DS386/AB/R, adopted 23 July S Lester, B Mercurio et al (2012), World Trade Law: Text, Materials and Commentary (Hart Publishing: Oxford) Mitsuo Matsushita, Thomas J. Schoenbaum and Petros C. Mavroidis, The World Trade Organization: Law, Practice and Policy (Oxford University Press:2006). 4. Michael Trebilcock, Robert Howse, Antonia Eliason, The Regulation of International Trade, 4 th edition (Routledge:2012) 5. Peter Van den Bossche and Werner Zduoc (2013), The Law and Policy of the World Trade Organization (CUP: Cambridge), 6. Bernard Hoekman and Michel Kostecki, The Political Economy of the World Trading System (Oxford: Oxford University Press, 2005) 7. John H. Jackson, The World Trading System: Law and Policy of International Economic Relations, 2d edition(cambridge: MIT Press, 1997). 8. Kenneth W. Dam, The GATT: Law and International Economic Organization (Chicago: University of Chicago Press, 1970). 9. Christper Arup, The New World Trade Organisation Agreements (Cambridge University Press:2000). 6
7 10. Robert E. Hudec, The GATT Legal System and World Trade Diplomacy (Salem, New Hampshire: Butterworth, 2d edition, 1990). 11. UNCTAD, The Outcome of the Uruguay Round: An Initial Assessment (Geneva: UNCTAD, 1994), , (for all GATT/WTO cases and other primary documents) (for the perspective of developing countries) (for the perspective of developing countries) Selected GATT/WTO Case Law Australia-Salmon, Brazil-Tyres, Canada-Aircraft, Canada-Dairy, Canada-Autos, Canada- Lumber, Canada-Periodicals, Dram Chips Case, EC-Asbestos, EC-Bananas, EC-Bed Linen, EC-Hormones, EC-Sardines, EC-Tariff Preferences, Guatemala-Cement, Japan-Alcohol, Korea-Beef, India-Quantitative Restrictions, Thailand-Cigarettes, Thailand-H Beans, Tuna- Dolphin (1991), Tuna-Dolphin (1994), Turkey-Textiles, US-FSC, US-Gambling Services, US-Gasoline, US-Hot Rolled Steel from Japan, US-Section 337, US-Shrimp, US-Soft Lumber, US-Subsidies on Up Land Cotton, US-Wool shirts, 7
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