Internation trade law
Assume that the newly enacted Tariff Amendment Act 2010 of Australia has introdused a new retail exercise tax on certain luxury product including cars and Jewelley.Accordingly. a 30 percent tax has been imposed on all vehicles worth over USD 30,000 while cars priced at USD 30,000 or under are taxed at 10 percent.Arguably, the 90 percent of the imported cars from Japan fell in to the high tax classification, Whereas only 10 percent of domestic cars fell into that high tax classification.Japan assert that automobiles costing over USD 30,00O are like product to Automobiles costing less, since they have the same end use.basic physical characterisistics,and tariff classification. Further a mere difference in plice between the imported and domestic product is not sufficient for those products to be considered unlike for the purposes of General Agreement on Tariffs and Trade(GATT)Australia disagrees with this approach. arguing that the tax could be imposed on the bases of a threshold of USD 30,000 as long as the tax is not applied so as to afford protection to domestic production. The purpose of Artical 111 of GATT is not to prevent consracting parties from differentiating between product for policy purpose unrelated to the production of domestic production.yet Japan is planiing to go for a legal battle.
To make the matter worse,very
recently the Director of Animal and plant Quarantine of Australia has adopted anothr policy for the importation of bananas from overseas.The policy provides that the importation or bananas can only be permitted subject to the adherance to import condations throughout the supply chain the Quarantine Act 1908 and the application of phytosanitary measures as specified in the import proper resk assesment method based on international standernds. On the top it has fixed the bound tariff 4% for New Zealand,which is not applicable to any other WTO member states.Hi TECH,a popua New Guine based company.without any previous experience in doing bissiness overseas is keen to export bananas to Australia
Answer the fpllowing;
– What are possible legal issuels raised in the above scenario from the perspective of international Trade law?
– Identifly and exermine blierfly statutory and judicial authorities that cound be relevant to adequately deal with those issuels?
– Advise Australia and Japan as to whether Australia can adopt such a tax.
measure and policy. What grounds does Japan need to extablish in order to obtain possible remedies?
– Analyse these by referring to the interpretation of like product and less favourable tretment by the Appellate body.
Advise Hi Tech:
-What policy and legal concideration should be taken into account in exporting bananas in Australia?Wound you advise Hi Tech to ise non-Discriminating pliciples under ILT? In such a case how can it make effective use of international standards, expecially of those under WTO agreements to successfully challege Australia phytosanitary measures?
– What are other issuels that may also arise in evaluating legal issuels and detrmining Australia obligation in regards to importing bananas under ITL?Support your answer with spencial reference to relevant laws and judicial decitions.