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15. Objectives of technical barrier to trade.
Technical regulations and product standards may vary from country to country. Having
many different regulations and standards makes life difficult for producers and exporters.
If regulations are set arbitrarily, they could be used as an excuse for protectionism.
The Agreement on Technical Barriers to Trade tries to ensure that regulations, standards,
testing and certification procedures do not create unnecessary obstacles, while also
providing members with the right to implement measures to achieve legitimate policy
objectives, such as the protection of human health and safety, or the environment.
16. Differences between SPS and TBT Measures:
It should be noted that health-related trade restrictions are addressed by both the SPS
Agreement and the Agreement on Technical Barriers to Trade (TBT Agreement)
The SPS Agreement covers health protection measures as defined above.
The TBT Agreement covers all technical requirements, voluntary standards and the
procedures to ensure that these are met (called conformity assessment procedures), except
when these are SPS measures as defined by the SPS Agreement.
SPS measures typically deal with:
additives in food or drink
contaminants in food or drink
toxic substances in food or drink
residues of veterinary drugs or pesticides in food or drink
certification: food safety, animal or plant health
processing methods with implications for food safety
labelling requirements directly related to food safety
plant/animal quarantine
declaring areas free from pests or disease
preventing disease or pests spreading to or in a country
other sanitary requirements for imports (e.g. imported pallets used to transport
animals)
TBT measures typically deal with:
labelling of composition or quality of food, drink and drugs
quality requirements for fresh food
volume, shape and appearance of packaging
packaging and labelling for dangerous chemicals and toxic substances, pesticides
and fertilizer
regulations for electrical appliances
regulations for cordless phones, radio equipment etc.
textiles and garments labelling
testing vehicles and accessories
regulations for ships and ship equipment
safety regulations for toys
etc.
7. Dumping
If a company exports a product at a price lower than the price it normally charges on its
own home market, it is said to be “dumping” the product. Is this unfair competition?
Subsidies and countervailing measures
This agreement does two things: it disciplines the use of subsidies, and it regulates the
actions countries can take to counter the effects of subsidies. It says a country can use the
WTO’s dispute settlement procedure to seek the withdrawal of the subsidy or the removal
of its adverse effects. Or the country can launch its own investigation and ultimately
charge extra duty (known as “countervailing duty”) on subsidized imports that are found
to be hurting domestic producers.
Safeguards: emergency protection from imports
A WTO member may restrict imports of a product temporarily (take “safeguard” actions)
if its domestic industry is injured or threatened with injury caused by a surge in imports.
6. Contingent protection
Contingent protection could refer to almost any political or legal trade barrier
where it is necessary for an evidentiary and argumentative burden of some sort to
be discharged by a domestic industry to justify protection from imports. Such
protection could take any number of different forms. However, as a term of art for
trade lawyers, contingent protection is more specifically taken to mean safeguard
measures, or what is known as emergency action in GATT-speak, and the
remedies of anti-dumping and countervailing duties. Quarantine fits the wider
description of contingent protection, but because of its scientific basis is not
thought of as being based on attitudes towards “unfair” trade.
4. decision making mechanism of WTO
According to the Director General, the rule of consensus is the ‘democratic guarantee’ of
the institution, since everyone in theory has a voice. However, the reality is quite
different. How democratic decision-making is by consensus, depends on the ability of
countries to voice their dissent. The power politics within the institution means that
dissent by any country in a formal meeting, which goes to the extent of blocking
consensus, is rare.
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