CONFIDENTIAL LW/JAN 2013/LAW589

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION
COURSE
COURSE CODE
EXAMINATION
TIME
LAW OF INTERNATIONAL TRADE AND
FINANCE II
LAW589
JANUARY 2013
3 HOURS
INSTRUCTIONS TO CANDIDATES
1. This question paper consists of seven (7) questions.
Answer four (4) questions in the Answer Booklet. Start each answer on a new page. 2.
3. Candidates are allowed to bring into the examination hall the following (unannotated):
i) GATT1947
ii) G ATT 1994
Do not bring any material into the examination room unless permission is given by the
invigilator.
Please check to make sure that this examination pack consists of:
i) the Question Paper
ii) an Answer Booklet - provided by the Faculty
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 3 printed pages
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CONFIDENTIAL 2
LW/JAN 2013/LAW589
QUESTION 1
Economic globalisation cannot be said to be beneficial to all sections of a trading nation.
Discuss.
(25 mark)
QUESTION 2
While protectionism is bad, the World Trade Organization's (WTO) preference for the use of
tariffs over quotas as a protectionist device is extremely sensible.
Discuss.
(25 mark)
QUESTION 3
The WTO dispute settlement system has been defined as 'an integrated dispute settlement
system'. What does this mean and why is this important?
(25 mark)
QUESTION 4
a) When does a 'threat of material' injury within the meaning of Article 3.7 of the Anti-
Dumping Agreement exist?
b) What does the 'special and differential treatment' provision of Article 15 of the Anti-
Dumping Agreement require from members which are developed countries?
(25 marks)
QUESTION 5
a) What is the principal purpose of the Most Favoured Nation (MFN) treatment
obligation of Article 1:1 of the GATT 1994?
b) According to the Appellate Body in EC-Asbestos, which three questions of
interpretations need to be answered to clarify the concept of 'likeness'?
(25 marks)
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3 LW/JAN 2013/LAW589
QUESTION 6
The Beverage Container Act 1998 (Oldland) has prohibited the sale and importation of non-
alcoholic beverages (such as fruit juice and milk) in tetra-pack containers. It only allows the
sale and importation of non-alcoholic beverages in glass bottles. According to Oldland, glass
bottles can be recycled more easily and more efficiently than tetra-pack containers. Oldland
claims that glass bottles are almost 100% recyclable while tetra-pack containers are only
70% recyclable. However, most scientific studies on the 'recyclability' of glass bottles and
tetra-pack containers conducted by Oldland conclude that there is little difference between
the two types of containers.
Freeland was the main exporter of non-alcoholic beverage to Newland. It used tetra-pack
containers as opposed to glass bottles. It was, therefore, much affected by Oldland's
prohibition on the sale and importation of non-alcoholic beverages in tetra-pack containers.
Since Oldland became a WTO member, Freeland has been considering whether to
challenge the import ban as inconsistent with WTO law. According to Freeland, Oldland sets
an exaggeratedly high level of environmental protection. Freeland argues that there is no
scientific basis for the importation ban. Alternatively, Freeland argues that Oldland, rather
than prohibiting the sale and importation of non-alcoholic beverages in tetra-pack containers
or remove whole thing to say-alternatively, Freeland argues that Oldland could pursue its
environmental policy objectives by discouraging the use of tetra-pack containers through the
imposition of an environmental tax on tetra-pack containers. It should be noted that Oldland
does not prohibit the use of tetra-pack containers for alcoholic beverages such as wine.
Freeland also notes that Oldland has rejected its invitation to start multilateral negotiations
on a phasing out of the use of tetra-pack containers for non-alcoholic beverages.
You have been instructed to prepare a legal brief in support of the position of Freeland.
(25 marks)
QUESTION 7
The WTO is facing four fundamental challenges. First, it must reform its own internal
structures and decision-making to address the needs of the future. Second, it must respond
to the demands of civil society and integrate broader social concerns into its agenda. Third, it
must address the problem of poverty. Fourth, it must find a way to coexist with proliferation
of bilateral and regional free trade agreements.
Discuss.
(25 marks)
END OF QUESTION PAPER
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