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Simon Lester
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Marc,
Yes, that's an excellent point. The US companies (and government) should be given an opportunity to restore trust in their ability to protect privacy.
Privacy as a Reason for Discriminating Against American Service Providers
I think I can safely assume that everyone has heard about the U.S. government program which uses American internet companies to access the online activities of non-Americans, so I won't get into the details. Not surprisingly, there have been some concerns expressed by law-makers outside of the ...
Thanks, Ben. I'm going to say more about all this soon in a post about the ORC survey. For now, let me just note the following: My sense is that the COOL measure examined by the panel and the Appellate Body is a lot more complex than what I was suggesting, and imposes significant costs as a result.
Global Trade Watch Praises the Appellate Body
Well, sort of: The WTO’s Appellate Body ruled that the program’s requirement that meat producers gather a greater amount of information about meat origins than is ultimately conveyed to consumers downstream violated WTO requirements. To address this concern, USDA’s new rule will offer consumers...
To answer my own question, there is some survey data here: http://www.consumerfed.org/pdfs/CFA-COOL-poll-press-release-May-2013.pdf
As is often the case, they didn't ask the questions I'd want them to ask. I'll discuss this in a future post.
What Do Consumers think of COOL?
This is from a Washington Post article about USDA's revision to its country of origin labeling (COOL) measures, in response to a WTO ruling that the measures violate WTO obligations: But the regulations, posted Friday by the Department of Agriculture, are the latest move in a trade dispute that...
AK,
Given the lack of clarity regarding various WTO provisions, I don't think we can say that with too much certainty.
Also, a lot depends on the language of a specific EU measure in this area. It's hard to say in the abstract.
PPMs in the Renewable Energy Case
I've always thought that the importance of production and process methods for the analysis of WTO rules is greatly overstated, but I recognize that others find it relevant, or at least interesting. Hence, I feel obligated to point to the following statement by the AB in para. 5.63 of the Renewa...
Ben,
No offense intended. Just trying to liven up the sometimes dreary and technical world of trade law!
So let me ask you two questions:
1. What about a labelling measure that required a general statement along the lines of "processed in Countries X, Y or Z" on all meat products, simply listing all the countries where a step in the production process might have taken place. The processors would have to know generally where the animals they use came from, but wouldn't have to know where specific pieces of meat originated. So a processor who uses only Canadian and American cattle could just indicate "processed in Canada and/or the United States" on every product. Would that be good enough?
2. What would you think of a Canadian law that required labelling in a way that was intended to encourage Canadians to buy more Canadian meat and less American meat, and in fact had this effect?
Global Trade Watch Praises the Appellate Body
Well, sort of: The WTO’s Appellate Body ruled that the program’s requirement that meat producers gather a greater amount of information about meat origins than is ultimately conveyed to consumers downstream violated WTO requirements. To address this concern, USDA’s new rule will offer consumers...
Julia,
Many people who follow this blog could probably give a better answer than I can. But I'll speculate anyway: The money has gone to new buildings (dorms, classrooms, cafeterias, etc.).
Simon
Trade in Online Services: Education and Health
This is from a new Peterson Institute paper: In a recent book, The Cost Disease: Why Computers Get Cheaper and Health Care Doesn’t, William Baumol reports some arresting numbers to illustrate the spiraling cost of key services which are plagued by slow productivity growth. Since the 1980s, the ...
Perry,
Those are all very good points you make!
I confess that I didn't put too much thought into the post. I just get annoyed by the argument that treaties like this one (and I heard the same thing with the disability rights treaty last year) will help American business. That may be true, but it seems to me that supporters should be careful about putting that in print. It could rub some other countries the wrong way.
One of the Goals of the UN Arms Trade Treaty: Helping American Business
This is from a supporter of the UN Arms Trade Treaty: Importantly, the treaty would not force anything new upon the United States or upon American companies, because federal laws and regulations already require United States arms manufacturers to comply with a comprehensive export control syste...
Also, note that with trade agreements, there is mutual trade liberalization. With the UN Treaty, in relation to international competition aspects, it seems to be purely about helping "us" at the expense of "them".
One of the Goals of the UN Arms Trade Treaty: Helping American Business
This is from a supporter of the UN Arms Trade Treaty: Importantly, the treaty would not force anything new upon the United States or upon American companies, because federal laws and regulations already require United States arms manufacturers to comply with a comprehensive export control syste...
Perry,
I suppose that different people have different views on the purpose of trade agreements. And of course, the agreements probably reflect multiple purposes.
But the purpose that I would like to see play the biggest role in trade agreements is increasing the international competition in goods and services trade. That could mean benefits to domestic producers in their attempts to sell in foreign markets, where foreign trade barriers are removed; and it could also mean that domestic producers face more foreign competition in their own market. The overall goal is more competition and benefits to consumers, not helping domestic industries.
So, for me, using treaties to help domestic industries compete in foreign markets should not be a rationale for trade agreements. It may be an incidental effect, but it's not the goal.
But you're right, maybe it is a main purpose in practice, and maybe that's how governments try to get public support. I question whether this is an effective approach, though, and in my view it may be one reason that getting trade agreements signed is so difficult these days. If that's how all governments approach these agreements, it makes it very difficult to find a balance that everyone can live with.
One of the Goals of the UN Arms Trade Treaty: Helping American Business
This is from a supporter of the UN Arms Trade Treaty: Importantly, the treaty would not force anything new upon the United States or upon American companies, because federal laws and regulations already require United States arms manufacturers to comply with a comprehensive export control syste...
I'm not sure there is a definitive legal interpretation on this point, but see the reasoning of the EC - Vessels panel at paras. 7.76-91: http://www.worldtradelaw.net/reports/wtopanels/ec-vessels(panel).pdf
Cybersecurity and Trade Conflict
Over at Opinio Juris, Roger Alford talks about some new U.S. cybersecurity legislation that bars federal government purchases of IT equipment “produced, manufactured or assembled” by entities “owned, directed, or subsidized by the People’s Republic of China” unless the head of the purchasing age...
Thanks for these comments! Very helpful.
I had in mind something a bit radical, with different patent terms for different products. But I've now abandoned it as impractical.
Why Can't We Discriminate in Relation to Patents Based on the Field of Technology?
Article 27.1 of the TRIPS Agreement says: "patents shall be available and patent rights enjoyable without discrimination as to the ... the field of technology." The law is pretty clear, and doesn't leave much wiggle room. But why is that the rule? Why shouldn't countries discriminate in relati...
With regard to Article XI, the AB hasn't weighed in here, but the China - Raw Materials panel did say some interesting things. See paras. 7.862-950.
As for Article XX, I can imagine arguments that such measures are necessary for "human life or health" and "public morals."
It would be nice if all international legal instruments were clearly and neatly reconciled. But that may be too much to ask of negotiators.
Arms Trade Treaty
The General Assembly has approved the conventional weapons trade treaty. While the treaty requires members to restrict exports in certain circumstances, it contains no reference to WTO law requirements, and Art. 26 on the relationship with other agreements seems to assert dominance. See Joost Pa...
Joel,
I've been reading up a bit on this, although I'm still far from an expert. I looked at the report by Joost's colleagues; a paper by a critic; and Julian Ku's post at Opinio Juris. As far as I can tell, the main thing the treaty would do is require countries to have an export control regime that addresses concerns about weapons getting into the wrong hands.
In terms of how WTO rules apply, I don't see anything in the treaty that inherently violates WTO obligations. It doesn't seem too difficult to set up a domestic export control regime in a way that complies with the rules. My understanding is that the U.S. (and probably others) already have something like this, and I've never heard of a possible legal challenge here.
Of course, a particular government might implement the treaty in a way that does violate WTO rules. But any measure by a government may violate WTO rules in the way that it is implemented, so there's nothing new here.
If I'm right about all that, is there any need for clarification of the Arms Trade Treaty's relationship with WTO rules? Or can we just wait for countries to act pursuant to the treaty (if, in fact, they do act), and judge their actual measures as implemented?
Arms Trade Treaty
The General Assembly has approved the conventional weapons trade treaty. While the treaty requires members to restrict exports in certain circumstances, it contains no reference to WTO law requirements, and Art. 26 on the relationship with other agreements seems to assert dominance. See Joost Pa...
Just a quick response to this point: "allowing the free importation of foreign-printed books will cause publishers to abandon the discounts they currently offer on book sales in developing countries."
In the alternative, allowing the free importation of foreign-printed books might cause publishers to abandon the premium charged on book sales in developed countries.
Perry Bechky on IEL at SCOTUS
This is a guest post by Perry S. Bechky, Visiting Scholar at Seattle University School of Law and Senior Attorney at Dorsey & Whitney LLP. If you buy a book (or other copyrighted work), where does your right to resell it end? Does the answer depend on whether the resale crosses nati...
Tom,
Thanks for these additional details. I guess what I had in mind was that complainants always seem to allege discrimination, even when it is not at all apparent that discrimination exists. There have been some broad interpretations of non-discrimination obligations in the past, so you can always make some argument in this regard. My sense is that people like to include a claim of this sort, even if just for PR purposes. So, I was surprised Malawi didn't even argue it. Of course, this is just a TBT Committee meeting, so they are not precluded from arguing the point if an actual dispute starts up.
Simon
Malawi's Statement on the EU Tobacco Products Directive
At the latest TBT Committee meeting, Malawi has offered a very interesting communication (G/TBT/W/360) related to the EU's proposed Tobacco Products Directive. In short, they think it violates various TBT Agreement provisions. They raise several aspects of the measure in particular: the ingre...
Thanks, Debra! I edited the post to reflect your correction.
Simon
Canadian Investor-State Issues
Having mentioned some Canada - EU investment text tension the other day, let me follow-up with some additional notes on Canadian happenings in investment law. First, some Canadian groups are challenging the signed, but not yet ratified, Canada - China investment treaty in domestic court: If Ca...
Rob,
I agree that like products and burden of proof are very important issues here.
The role of Canadian government policies in the analysis is an interesting one. I'm not sure what to make of it, and I'm curious to see how the panel deals with it.
Simon
How I Am Thinking about the Discrimination Issues in the Seal Products Dispute
Before getting into the substance of the Seal Products dispute, let me take this opportunity to thank Rob for all of his reporting on the panel meetings. I don't think I've ever come across such a detailed analysis of this part of the panel process. I would guess that even people who disagreed...
It sounds to me like you are saying the following: Generally speaking, U.S. laws are more favorable to foreign investors than investor-state provisions are; however, in some instances, the investor-state provisions are more favorable, and we should preserve this.
Trans Atlantic Trade and Investor-State
From an opinion piece in the National Interest: A U.S.-EU deal may simultaneously reverse important trends governing international investment. ... While ISD clauses are widespread, they usually exist within the context of treaties between states characterized by economic asymmetries. For instan...
"US laws are generally more favorable to investors, including foreign investors, than has been the case under NAFTA, let alone the newer and less favorable agreements."
Sounds like an argument that we don't need investor-state! ;)
Simon
Trans Atlantic Trade and Investor-State
From an opinion piece in the National Interest: A U.S.-EU deal may simultaneously reverse important trends governing international investment. ... While ISD clauses are widespread, they usually exist within the context of treaties between states characterized by economic asymmetries. For instan...
Joost,
Let me make an observation and a comment.
First, the observation. This is from the press release announcing Graham's appointment to the Appellate Body:
"Mr. Graham served as Deputy General Counsel in the Office of the U.S. Trade Representative where he was instrumental in the negotiation of the Tokyo Round Agreement on Technical Barriers to Trade ..."
http://www.wto.org/english/news_e/pres11_e/pr647_e.htm
Second, the comment. I agree with Graham that the negotiating history could play a larger role than it currently does. It surprises me sometimes how little attention the parties and adjudicators pay to it. It's not that I think there are lots of clear answers to difficult interpretive questions in this history. But in the several areas I've looked into, there are informative details that would help shape the interpretation. And I think that ignoring these details, and placing so much emphasis on vague words in the text, does leave some decisions looking less credible.
The Balancing Act of Keeping Up "Respect" for AB Rulings (according to an AB member)
I’m intrigued by a speech Thomas Graham gave last week at Hofstra, reported also in Inside US Trade. Mr. Graham (the US member on the Appellate Body) points out that -- with an increasingly diverse WTO membership (think: China and now Russia) and deadlock in WTO negotiations -- the corner stone ...
Mark,
Check out the following table:
http://www.census.gov/compendia/statab/2012/tables/12s1291.pdf
If I'm reading this correctly, EU investment in the U.S. is roughly 6 times the amount of Canadian investment. Will that mean 6 times more cases? Will there be similar levels of cases against the EU and its member states? If so, the international investment system might look a lot different to those who are currently pushing for it!
But first they have to get this agreement done, which will be no easy task ...
Trans Atlantic Trade and Investor-State
From an opinion piece in the National Interest: A U.S.-EU deal may simultaneously reverse important trends governing international investment. ... While ISD clauses are widespread, they usually exist within the context of treaties between states characterized by economic asymmetries. For instan...
Mark,
I agree that the U.S. and EU have shown no sign of re-thinking investor-state, and the HLWG report suggests they will continue on the current path. But the following statement in the report struck me as significant:
"the United States and the EU have directly invested more than $3.7 trillion/€ 2.8 trillion on both sides of the Atlantic."
More investment means more opportunities for litigation, and based on those figures, there's a lot of investment!
It's not clear to me that either the U.S. or EU leaders have thought much about how an investor-state loss would play domestically. Or maybe it's more accurate to say, they are not going to worry about this issue until they start seeing a few losses. With the amount of investment that would be covered in a U.S.-EU agreement, they might have to start contemplating the impact of losses.
Trans Atlantic Trade and Investor-State
From an opinion piece in the National Interest: A U.S.-EU deal may simultaneously reverse important trends governing international investment. ... While ISD clauses are widespread, they usually exist within the context of treaties between states characterized by economic asymmetries. For instan...
Over at the Cato blog, I did a similar post, and then speculated a bit about what Krugman is doing. http://www.cato.org/blog/protectionism-not-dead-yet
Protectionism: Not Dead Yet
Paul Krugman has a post in which he proclaims "The Death of Protectionism." He refers to this chart from the ITC: And he says: In doing course prep for trade policy, I looked, as I always do, at the latest edition of the USITC publication on the economic effects of import restrictions — an...
Yes, I believe so.
Protectionism: Not Dead Yet
Paul Krugman has a post in which he proclaims "The Death of Protectionism." He refers to this chart from the ITC: And he says: In doing course prep for trade policy, I looked, as I always do, at the latest edition of the USITC publication on the economic effects of import restrictions — an...
In my paper, I relied on Article XVII. I worry about the scope of XVI in relation to domestic regulatory autonomy. But there may be specific examples of where XVI could be helpful here.
With regard to subsidies for purchases from local providers, here's what I said:
"Subsidies should be for students, not for domestic educational institutions. It is common for governments to give financial aid to students from lower- and middle-income families. However, these subsidies should not be used to discriminate against foreign online universities. If the purpose of
these programs is to help students, they should be granted regardless of the institution, provided it is a legitimate one.
In its initial negotiating offer as part of the Doha Round, the United States said:
“Scholarships and grants may be limited to U.S. citizens and/or U.S. residents of particular states. Tuition rates may vary for in-state and out-of-state residents.” These policies are designed to help students directly, not educational institutions themselves, and are therefore acceptable. The offer further states: “To participate in the U.S. student loan program, foreign institutions established in the United States would need to meet the same requirements as U.S. institutions.” This principle is also fine, if applied equally to foreign and domestic online institutions."
Liberalizing Cross-Border Trade in Higher Education
Here's something that the many academics reading this blog may be interested in. I've mentioned MOOCs (massive open online courses) briefly a couple times. Now I've written something more detailed: A Cato paper called Liberalizing Cross-Border Trade in Higher Education: The Coming Revolution ...
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