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Please note the case is in orange. The assessment question is in green. The structure is in red. Legal Submission Exercise1 Traditionally, Newland is a wine-drinking country. However, recent market...

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Please note the case is in orange. The assessment question is in green. The structure is in red. Legal Submission Exercise1 Traditionally, Newland is a wine-drinking country. However, recent market research has shown that demand for beer in Newland is steadily growing. Superbrew Inc. of Richland, one of the world's largest beer producers, therefore wants to increase its exports of low alcohol beer, high alcohol beer and non-alcoholic beer to Newland. Before its accession to the WTO, Newland limited the importation of beer of any kind to a meagre 50,000 hectolitres per pear. This quantitative restriction was put into place in the late 1950s to protect the many winegrowers in Newland from competition from imported beer. The National Association of Wineries (NAW) was, and still is, a powerful lobby in Newland politics. On accession to the WTO, Newland abolished the quantitative restriction on the importation of beer and introduced customs duties instead. Since 1995, Newland has imposed the following ad valorem custom duties2: · 10 per cent on wine; · 20 per cent on low alcohol beer and non-alcoholic beer; · 30 per cent on high alcohol beer. Newland has exempted the following beverages from customs duties: · high alcohol beer produced in the United States; and · high alcohol beer produced in micro-breweries Since last year, when a case of serious customs fraud was discovered, Newland has required that all beer be imported through two designated ports only. This requirement does not apply, however, to beer imported from neighbouring Nearland, a country currently negotiating accession to the WTO. Shortly after Newland joined the WTO, it also revised its tax regime for alcoholic and non-alcoholic beverages. The following VAT rates now apply: · 2 per cent on domestically produced non-alcoholic beverages and non-alcoholic beverages produced in the United States; and · 5 per cent on all other imported non-alcoholic beverages. The following excise tax rates apply: · 15 percent on wine; · 15.5 percent on low alcohol beer and non-alcoholic beer; · 30 per cent on high alcohol beer. In Newland, beer, whether domestic or imported, may only be sold by licensed beer merchants and may not be sold in supermarkets. No such restrictions exist on the sales of domestic or imported wine. In addition, they do not apply to Australian beer. 1 The question is from Peter Van den Bossche The Law and Policy of the World Trade Organization (2nd ed, Cambridge University Press, Cambridge, 2009) Pp398-400. 2 Ad valorem custom duties are calculated according to the price of a product or service, rather than at a fixed rate. Superbrew Inc. not only wants to sell its beer in Newland’s supermarkets, it also wants to establish a wholesale trade company in Newland as well as a network of retail shops to handle the distribution of its beer. Superbrew has been told it can do neither. Pursuant to the Fair Competition Act of 1991, imported as well as domestic beer is subject to a minimum price requirement, annually set by the Ministry of Commerce of Newland. Furthermore, Newland prohibits the use of additives in low alcohol beer while leaving the use of additives in high alcohol beer unregulated. In support of the national wine industry, Newland’s National Federation of Restaurateurs, a government-sponsored organisation, has instructed its 10,000 members not to serve beer with traditional Newland dishes. Municipal authorities in Newland’s main wine-producing region prohibit serving beer on weekends. Note also that, since the Armed Forces Reform Act of 1996, the armed forces of Newland are required by law to buy domestic alcoholic beverages. You are an associate with the Brazilian law firm, NogueiTa Neto Avogados. Your firm has been hired by Superbrew Inc. to give legal advice on all the issues raised above. You have been instructed to limit your legal brief to the question of whether there are violations of the non-discrimination obligations under WTO law. At present, you will not address the question of whether a possible violation can be justified under the 'general' or other exceptions provided for in the GATT 1994 or the GATS. · The Superbrew Inc. likes good, tight, well-argued submissions and it should not be too ‘wordy’. So, present your brief as succinctly as you can. · You can use dot points to prepare your Brief. · You may use the following headings in a sample BRIEF form as headings for your brief. · Please refer to · Article I:1 of the GATT 1994 https://www.wto.org/english/docs_e/legal_e/06-gatt_e.htm see section 1, no need to see section 2 and 3. · Article II:1 of the GATS https://www.wto.org/english/docs_e/legal_e/26-gats_01_e.htm#ArticleII see Article II most-favoured-national treatment. · Article III of the GATT https://www.wto.org/english/docs_e/legal_e/gatt47_01_e.htm#articleIII see article III. · Article XVII of the GATS https://www.wto.org/english/docs_e/legal_e/26-gats_01_e.htm#articleXVII see article XVII · and relevant WTO cases for non- discrimination principles. Please find one from WTO website or Lecture regarding non-discrimination principles. · Due date: · Length (excluding footnotes and bibliography): 1300 words without reference lists. · Should include some academic references. See “recommended” references picture. And also, combine with references in the each lecture slide will be useful as well. · Using HARVARD referencing style. · Should include IN-TEXT references. · Everything copied from journal, book, article, URL, news etc should all be referenced as well. Because those are not your OWN WORK. · Essay should be submitted via your Gradebook. · Extensions may be granted if supporting documentation can be provided. Please apply for an extension via your course website. · A penalty of 5% per day will be applied to late essays. · Assessment format in the next page Note: a copy of the Assessment Feedback sheet is available in your Course outline. BRIEF - STRUCTURE I PURPOSE II KEY POINTS / ISSUES III RELEVANT RULES IV RECOMMENDATION / ADVICE Assessment Item: Legal Submission Exercise Student names: …… The Graduate Qualities being assessed by this assignment are: Demonstration and application of 1: are prepared for lifelong learning 2: are effective problem solvers 3: communicate effectively 4: demonstrate an international perspective Assessment Criteria Feedback Rating: 0 (very poor) – 10 (excellent) A: Legal Writing Skills (50% of the total mark) Written communication skills, including the use of clear, effective language, an appropriate writing style, and attention to sentence construction, paragraphing, spelling, punctuation and grammar. XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX Clear and appropriate presentation, including compliance with correct legal referencing requirements. XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX B: Quality of Legal Analysis (50% of the total mark) Identification of the key legal and policy issues arising in the case which require detailed analysis and discussion; XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX Knowledge and understanding of rules, principles and policies articulated by the judges in the case, including discussion of the relevant legislation XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX Content, structure and balance of the submission XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX Summary Comment Week 1 Matsushita,, M,, Schoenb aum,, T & Mavrodis,, The World Trade Organization : Law,, Practice and Policy , ( 3rd ed,, Oxford University Press,, Oxford P 2015)) o Chapter 1,, ‘TThe World Trade Organization’’ P1 – P 30 . o Chapter 2,, ‘WWTO Law and Domestic Law’’ P31 - 46.. o Chapter 3,, ‘SSources of Law and Pr inciples of Interpretation’’ P47 - P82.. Simon Lester and Bryan Mercurio,, World Trade Law , Hart Publishing ( 2 nd ed,, 2013 );; o Chapter 2 , ‘TThe History and Institutions of the Multilateral Trading System’’ P 5 5 - P 90 . o Chapter 3,, ‘WWorl d Trade Law and International Law’’ P91 - P109.. o Chapter 4,, ‘WWorld Trade Law and Domestic Law’’ P111 - P144.. Week 2 Matsushita,, M,, Schoenbaum,, T & Mavrodis,, The World Trade Organization : Law,, Practice and Policy , ( 3rd ed,, Oxford University Press,, Oxford P 2015)) o C hapter 4 , ‘ Dispute Settlement ’ P 83 – P 110 . Simon Lester and Bry an Mercurio,, World Trade Law , Hart Publishing (22 nd ed,, 2012)) o Chapter 5,, ‘TThe Settlement of Disputes in GATT//WWTO’’,, P149 - P219 Week 3 Matsushita,, M,, Schoenbaum,, T & Mavrodis,, The World Trade Organization : Law,, Practice and Po licy , ( 3rd ed,, Oxford University Press,, Oxford P 2015)) o Chapter 6 , ‘ Most Favoured Nation Treatment ’ P1 55 – P 178 . Simon Lester and Bryan Mercurio,, World Trade Law , Hart Publishing (22 nd ed,, 2012)) o Chapter 7,, ‘NNon - Discriminatio n:: MFN and National Treatment’’,, P309 - P345 WEEK THREE PRINCIPLES OF THE WTO TRADING SYSTEM:: THE MOST FAVOURED NATION PRINCIPLE European Communities – Measures Affecting Asbestos and Asbestos - Containing Products (WWT//DDS135//AAB//RRReport of)) pp XXXXXXXXXX Week 4 Matsushita,, M,, Schoenbaum,, T & Mavrodis,, The World Trade Organization : Law,, Practice and Policy , ( 3rd ed,, Oxford University Press,, Oxford P 2015)) o Chapter 7 , ‘ National Treatment ’ P1 79 – P 214 . Simon Lester and Bryan Mercurio,, World Trade Law , Hart Publishing (22 nd ed,, 2012)) o Chapter 7,, ‘NNon - Discrimination:: MFN and National Treatment’’ , P 265 - P308 Week 5 Matsushita
Answered Same Day Jul 12, 2020

Solution

Arun answered on Jul 13 2020
149 Votes
Newland Analysis
Introduction
[footnoteRef:2]The company supe
ew wants to invest in the country Newland. The country has abolished the quantitative restriction on the beer importation and placed customs duties. The country has exempted USA produced high alcohol beer and in micro
eweries. The tax regime is also revised where 5 percent custom duty on imported non alcoholic beverages is imposed. The excise tax imposed is 15 percent for wine, 15.5 percent for low alcohol beer and non alcoholic beer and 30 percent on high alcohol beer. The beers can be sold by the licensed merchants but wine does not have such restriction. Also Newland do not apply such condition to Australian beer clearly giving privilege to Australian beer. [2: Principle of the trading system Available from: https:
www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.htm (Accessed 13 July, 2018).
Most favoured nation treatment Available from:https:
www.wto.org/english/docs_e/legal_e/26-gats_01_e.htm#ArticleII (Accessed 13 July, 2018).
]
Also to support the national wine industry from beer companies, the national federation of the restaurants in Newland instructed that beer should not be served with traditional Newland dishes. The beer serving on weekend is also prohibited. The armed forces are required to purchase only domestic alcoholic beverages. Certainly the WTO principles are violated in this case.
Analysis
There are issues of discrimination as the case reveals. The country is favouring Australian beer and USA products. The WTO agreement requires that countries should not normally discriminate between the trading partners Principle of the trading system (n.d.). [footnoteRef:3]Granting someone a special favour such as not placing custom duty or placing low custom duty cannot be acceptable act according to WTO principle. The principle is known as the most favoured nation treatment most favoured nation treatment (n.d.). [3: General agreement of trade and tariff 1994 Available from: https:
www.wto.org/english/docs_e/legal_e/06-gatt_e.htm (Accessed 13 July, 2018).
]
. There are certain exceptions to not follow this principle. Countries may set up a free trade agreement for goods that are traded within their group. The countries can offer special access to the developing countries in their market. But here the special access is given to the Australia and USA that are already developed countries. The countries can raise...
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