I.D.
END TERM EXAMINATION, APRIL 2017
B.A.LL.B. (HONS.)
SEMESTER-VIII X WTO
Max. Marks: 60 Time Allowed: 3:00 Hrs.
Note: Answer five questions including Question No. 1 which is compulsory. The marks carried by each
question are indicated at the end of the question.
1. Answer the following (each answer should be in approximately 100 words): (Marks 2×10=20)
a. State the difference in ambit between "like product" and "directly competitive or substitutable
product".
b. What are non-tariff barriers to trade? Give examples.
c. Identify the non-violation grounds under Article XXIII of GATT for filing of complaint by
one WTO member against another.
d. Define dumping.
e. What is the de minimis under Agreement on Subsidies and Countervailing Measures?
f. Define negative consensus and discuss its role in dispute settlement.
g. What is sunset review under Agreement on Antidumping?
h. Discuss the importance of Havana Charter.
i. Identify the security exceptions under WTO.
j. What is the "aim and effect" test?
2. Republic of Tana a WTO member country) has enforced import restriction in form of licenses on
importation of chocolates on the ground that consumption of chocolates has serious implications
on human health leading to obesity and therefore reduction of consumption of chocolate is the
object of its domestic legislation The Chocolate Hatao Act. The Chocolate Hatao Act defines
Chocolate as processed and packaged chocolates, chocolate in fluid form for consumption as
spread, toppings or in choco-chips form. Tana Chocolate Association is the sole authority who
would grant license for importation of chocolates and has granted such licenses only twice to Tana
State Chocolate Trading enterprise and Xama a non-WTO member trading partner of Tana) over
a period of 15 years. European Union has filed a complaint before WTO stating despite its several
attempts in procuring an import license, it has been denied such license. Xama has also stated the
licensing requirement was an attempt to flourish domestic industries on chocolate production and
that such import restriction is in violation of WTO principles. Tana however has claimed its The
Chocolate Hatao Act comes under Article XX of GATT and therefore stands justified.
The evidence filed by European Union shows domestic production has increased from 42% to 72
after introduction of The Chocolate Hatao Act. Chocolate imported from Xama amounts to
28% of the rest chocolate consumption in Tana.
Identify the WTO non-discrimination principles and other WTO provisions Tana may be in
violation of and explain how.
Examine whether Tana's defence under Article XX of GATT is justified or not.
(Marks
3. Khawasa WTO member country) imposed tax on wine differing according to the type of grapes
from which such wine has been made. It imposed lower tax on wine made from warmer climate
regions like Khawasa, its neighbor Bhawasa and Nawasa (both non-WTO members). While wine
made from grapes from relatively cooler regions like Viami, Fiami or Oriami which are other
trading partners of Khawasa were taxed differently at a higher rate. The wine made from both
warmer and cooler region grapes have same taste, same physical characteristics. Viami, Fiami and
Oriami being all WTO members have decided to approach Dispute Settlement Body of WTO on
like products that are the wine from different trading partners as well as domestically produced
wine is being treated differently.
Discuss whether Viami, Fiami and Origami can approach DSB for establishment of Panel
directly before entering into consultation, good office or mediation, etc.. with Khawasa.
Draft the Terms of preference for this dispute on behalf of Viami, FIami and Origami.
Decide with clear arguments based on provisions of GATT and cases, if any, whether Panel
should decide in favour of Khawasa or otherwise. (Marks
PTO
4. Asha, a non-governmental organization, provides financial assistance to artists of Pipli region
in Orissa, India specific to artists engaged in appliqué work industries in form of loans as well as
technical support in form of assistance in advertisements, promotion, etc… at reduced rates than
market. Asha, the NGO's objective is in consonance with the Central Government of India's
initiative to promote handicraft industries in India. Therefore Asha gets substantial funds from the
Government of India with specific instructions and guidance on how to help handicraft industries.
Similar appliqué works are also imported to India from Bangladesh and Bhutan. In 2016, both
Bangladesh and Bhutan have contended these loans and technical support through Asha amounts
to "favorable treatment" to domestic appliqué work producers and also qualifies as actionable
subsidies. Discuss:
Whether the financial and technical assistance provided by Asha would qualify as "subsidy"
under The Subsidies and Countervailing Agreement?
Whether such internal subsidy is in violation of National Treatment principle under GATT?
(Marks
Discuss the structure of WTO in a chart form. (Marks 04)
5. World Trade Organization is body concerned only with promoting international trade and not
with issues concerning environment or principles of sustainable development. Argue for or against
with help of detailed discussion on case laws, aim and objectives of WTO and other relevant
provisions.
Discuss how surveillance of implementation of recommendations and rulings of panel or
appellate body is done by DSB. (Marks
6. Quito, Quato, Quoto are three WTO member countries accused for dumping of footwears in
Sabquoto WTO member). The quantity of footwears dumped in a period 2015-2016 from
Quito, Quato and Quoto amounts to 1.95 2.55 and 2.80% individually of the total import of
products. Quito, Quato and Quoto has also produced evidence that dumping amounts to less than
of the export price individually from all three accused member country. Sabquoto has
appointed you as their legal advisor. Referring to the Agreement on Antidumping and Article VI
of the GATT, help Sabquoto in the following situations:
Criteria for qualification as a complaint to initiate complaint under Agreement on
Antidumping.
How Sabquoto can prove there is injury happening to its domestic industry from volume of
dumped import relying on the facts available in the question?
The application for initiation has to be backed by what kind of information by Sabquoto?
(Marks
What is normal value of products under Article VI of GATT? (Marks 01)
7. Quantitative Restrictions are to be applied in Non-discriminatory fashion. (Marks
Discuss the procedure for non-discriminatory administration of quotas or import licenses in
accordance with GATT provisions.
Also identify 4 situations which are exception to Rule of Non-discrimination in applying
quantitative measure.
What is Montreal rule in dispute settlement? (Marks 02)