tariffs Video 3

Overview of Quantitative Restrictions

  • Focus on Article 11 of GATT, which prohibits various forms of restrictive measures.

  • These restrictions include quotas, import/export licenses, and other policy measures.

  • The text appears comprehensive, covering many potential issues.

Prohibition of Restrictions

  • Article 11 broadly applies to any measures that prohibit or restrict:

    • Importation

    • Exportation

  • Excludes duties, taxes, and certain other charges.

  • The measures impact the flow and availability of products in trade.

Definitions

  • Prohibition: A complete ban on the trade or import of a specific commodity.

  • Restriction: Any action resulting in quantitative limits on imports or exports, often influenced by governmental action.

  • No numerical calculation is necessary to establish a restriction; focusing on the design of measures is key.

Scope of Measures under Article 11

  • Article 11 covers:

    • Express prohibitions and restrictions on specific commodities.

    • Measures with a restrictive effect even if they appear innocuous, such as:

      • Tax schemes affecting export volume.

      • Discretionary licensing requirements.

      • Minimum import/export price systems.

      • Delays in issuing export licenses.

      • Restrictions at ports of entry.

  • Government involvement is crucial; private company measures typically do not qualify unless backed by governmental activity.

Non-applicability of Certain Measures

  • Domestic quotas do not fall under Article 11, such as:

    • Screen quotas for local productions.

  • Article 3, focusing on national treatment, differs from Article 11, which specifically addresses import/export processes.

Distinction Between Article 3 and Article 11

  • Article 3 concerns internal measures affecting imported products within a state's market.

  • Article 11 directly addresses measures impacting actual importation.

  • Import/export orders are prohibited, while regulations on domestic measures should be non-discriminatory.

Exceptions to Article 11

  1. Export Restrictions:

    • Prevent shortages of essential commodities.

  2. Standards Application:

    • To classify or rate market needs of products.

  3. Agricultural and Fisheries Products:

    • Import restrictions for managing industries are permitted.

General Exceptions in WTO Agreements

  • Governments can take non-economic measures for:

    • Protecting human, animal, and plant life.

    • National security concerns (Article 21).

    • Addressing balance of payments difficulties.

    • Supporting developing countries in specific industries.

Conclusion and Future Discussions

  • The implications of these restrictions became prominent during the COVID-19 pandemic, with various countries enacting quantitative measures.

  • Examination of case laws and practical implications of Article 11 and its exceptions will be the focus of the next session.