Please answer the following question: The State ofAirmaniais a developed country with very high environmental standards applicable
Question:
Please answer the following question:
The State ofAirmaniais a developed country with very high environmental standards applicable to domestic industries. Consumers inAirmaniahave a strong demandfor environmentally friendly products. They also have the technology to manufacture environmentally friendly products. The State of Bardon is a developing countrywith considerable industrial capability. It is a beneficiary of export driven development and is an important trading partner ofAirmania.Airmaniaimports a largeportion of Bardon's manufactured goods. While the State of Bardon has many environmental laws on its books, they are seldom enforced. Economic advancement fornow plays a more important role than environmental protection.
BothAirmaniaand Bardonare founding Members of the WTO Agreement.Airmaniahas justintroduced a law implementing a variation on an "eco-labellingprogramme" pursuant to which manufactured goods that satisfy certain criteria will be eligible to belabelled as "Eco-Friendly". The criteria will be developed and administered by a local non-governmental organization inAirmaniaknown as "Eco-Lab". Eco-Lab willexamine all phases of a given product's life-cycle (a cradle-to-grave analysis). This will include an analysis of how a product is made (the production processes usedand the environmental implications of these processes), as well as environmental factors associated with a product's packaging, its use, and its subsequent disposal.Eco-Lab will be entirely responsible for establishing the criteria and testing whether products satisfy the criteria and can wear the "Eco-Friendly" label.
Conformity withAirmania'sprogrammeis voluntary - in other words a manufacturer in Bardon will not need a label from Eco-lab to sell its products inAirmania. However, it isexpected that having the "Eco-Friendly" label will make products very popular amongAirmania'senvironmentally conscious consumers. You are a consultantforindustrial exporters in the State of Bardon. Your clients are worried that the eco-labelling scheme will make it more difficult to sell their goods inAirmania. Yourclients have approached you with questions concerning the WTO Agreement, in particular the TBT Agreement.
- 1 a) DoesAirmania'slaw fall under the TBT Agreement?
- b) If yes, is it a technical regulation, a standard or a conformity assessment procedure?
- c) What areAirmania'sobligations under the TBT Agreement with respect to notification andtransparency?
- d) What areAirmania'sobligations with respect to national treatment and MFN treatment?
- e) IsAirmania'sobjective legitimate? How does this point affect your analysis?
- f) Is it significant that because of their environmental knowledge and production skills,Airmania'sdomestic industries may benefit from the labelling scheme?
- g) IsAirmaniaallowed pursuant to the TBT Agreement to implement the scheme described above?If not, what changes must be made?
- h) How is your analysis affected by the fact that the labelling criteria includes processes andproduction methods?
- i) What would your evaluation of this dispute be under GATT Articles III and XX of the GATT 1994?
See for reference:
WTO | Technical Barriers to Trade
Technical Barriers to Trade | International Trade Law - YouTube
The TBT Agreement | International Trade Law - YouTube