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The document outlines four major trade disputes before the WTO: the Brazil-Canada Aircraft Dispute, the EU/US Foreign Sales Corporation Dispute, the Asian/US Shrimp and Sea Turtle Dispute, and the US/EU Beef Hormones Dispute. Each case highlights the past, present, and future implications of these disputes on international trade rules, national interests, and global concerns like environmental protection and food safety. These disputes illustrate the complexities of reconciling differing national policies within the framework of WTO agreements.

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37 views3 pages

Assignment AM

The document outlines four major trade disputes before the WTO: the Brazil-Canada Aircraft Dispute, the EU/US Foreign Sales Corporation Dispute, the Asian/US Shrimp and Sea Turtle Dispute, and the US/EU Beef Hormones Dispute. Each case highlights the past, present, and future implications of these disputes on international trade rules, national interests, and global concerns like environmental protection and food safety. These disputes illustrate the complexities of reconciling differing national policies within the framework of WTO agreements.

Uploaded by

harshjhaghra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Name- Harshdeep Singh

Student ID- W0849491

Here's a summary of four major trade disputes before the World Trade
Organization (WTO), categorized by their impacts:

1. Brazil-Canada Aircraft Dispute

Past: In 1996, Brazil challenged Canadian subsidies to Bombardier, claiming


they violated WTO rules. Canada countered by challenging Brazilian
subsidies to Embraer.

Present: Both countries were found to be in violation of WTO agreements.


They have since modified their subsidy programs, but tensions remain.

Future: This case set precedents for how the WTO deals with government
support in high-tech industries, potentially influencing future disputes in
sectors like electric vehicles or renewable energy.

Example: Bombardier received loans from the Canadian government at


below-market rates, while Embraer benefited from Brazil's PROEX export
financing program.

2. EU/US Foreign Sales Corporation Dispute

Past: In 1997, the EU challenged US tax breaks for American exporters


through Foreign Sales Corporations (FSCs).

Present: The WTO ruled against the US multiple times. The US repealed the
FSC system but replaced it with similar measures, leading to further
disputes.
Future: This case highlights the ongoing challenge of balancing domestic tax
policies with international trade obligations, which may affect future tax
reform efforts globally.

Example: US companies like Boeing used FSCs to reduce their tax liability on
export income, giving them a competitive advantage over European rivals
like Airbus.

3. Asian/US Shrimp and Sea Turtle Dispute

Past: In 1996, India, Malaysia, Pakistan, and Thailand challenged US


restrictions on shrimp imports based on fishing methods that endangered
sea turtles.

Present: The WTO initially ruled against the US but later accepted a modified
version of the restrictions. This led to improved international cooperation on
environmental issues in trade.

Future: This case set a precedent for how environmental concerns can be
addressed within WTO rules, potentially influencing future eco-friendly trade
policies.

Example: The US required shrimp-exporting countries to use turtle excluder


devices (TEDs) in their fishing nets to protect endangered sea turtles.

4. US/EU Beef Hormones Dispute

Past: In 1996, the US and Canada challenged the EU's ban on hormone-
treated beef imports.
Present: Despite WTO rulings against the EU, the ban largely remains in
place. The US and EU reached a compromise in 2009, allowing some
hormone-free beef imports with reduced tariffs.

Future: This ongoing dispute underscores the challenges of reconciling


different approaches to food safety and consumer preferences in
international trade.

Example: The EU banned beef from cattle treated with growth hormones like
estradiol-17β, citing potential health risks, while the US argued the ban was
not scientifically justified.

These trade disputes illustrate the complex interplay between national


interests, international trade rules, and evolving global concerns such as
environmental protection and food safety. They have shaped WTO
jurisprudence and continue to influence trade negotiations and policies
worldwide. The resolutions (or lack thereof) in these cases demonstrate the
strengths and limitations of the WTO dispute settlement system in
addressing complex, multifaceted trade issues.

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