PREPARATION 1
https://trungtamwto.vn/chuyen-de/192-van-kien-co-ban-cua-wto
Video 1:
1. Which of the following best describes Globalization 1.0?
A) There is no trade and all forms of economic activity are self-sufficient.
B) Foreign trade is limited to a minority of goods, and transportation is slow and
dangerous. Most goods are produced locally.
C) Foreign trade is common, and it is easy to transport goods over vast distances in a
short amount of time reliably.
D) Information can move almost instantaneously, instead of goods being produced at
a single location, free access to communication allows production to be split up into a
global supply chain.
2. What primarily caused the shift from Globalization 1.0 to Globalization 2.0?
A) Advancements in business organization.
B) Advancements in transportation.
C) Advancements in communication.
D) Advancements in political systems.
3. What primarily caused the shift from Globalization 2.0 to Globalization 3.0?
A) Advancements in business organization.
B) Advancements in transportation.
C) Advancements in communication.
D) Advancements in political systems.
4. What best describes how Globalization 4.0 is described in the video? [Which
we have not achieved yet]
A) Producing goods in many different countries in a global supply chain.
B) A majority of goods produced and consumed are international.
Video 2:
1. Which of the following is true about creative destruction?
A) In the short term it can be extremely detrimental for some, but in the long
term it is extremely beneficial.
B) In the short term it can be extremely beneficial for some, but in the long term it is
extremely detrimental.
C) Both in the short term and the long term it is extremely beneficial.
D) Both in the short term and the long term it is extremely detrimental.
2. What are both Kodak and Polaroid examples of?
A) The desire of people to hold on to old technologies.
B) The need for automation in the workforce.
C) Powerful companies that only increased profits due to creative destruction.
D) The painful side of creative destruction.
3. What does the number of American farmers reveal about creative destruction?
A) That creative destruction can free up labor for new pursuits.
B) That creative destruction is a recent phenomena.
C) That creative destruction generally lowers output for a short time.
D) That creative destruction can cause an economic recession.
4. What does the American rose industry reveal about creative destruction?
A) That even trade can cause creative destruction.
B) That creative destruction cannot be applied to all products.
C) That creative destruction can sometimes have no positive effect.
D) That creative destruction can sometimes have no negative effect.
Video 3:
1. What does the “elephant graph” show?
A) The effect of globalization on GDP growth of different countries.
B) The effect of globalization on international trade.
C) The effect of globalization on total global economic output.
D) The effect of globalization on income growth for people of various incomes.
2. What has happened to the 1.1 billion people on the “back” and “head” of the
elephant graph?
A) They have become more impoverished.
B) They have seen little change in their livelihood.
C) They have been lifted out of extreme poverty.
D) They have gained incomes equivalent to wealthy 1st world countries.
3. What is the primary reason people in the top of the “trunk” of the elephant
seen the most benefits under globalization?
A) They have access to the best education.
B) They work for the best companies.
C) They live in the most wealthy countries.
D) They can take advantage of global markets.
4. Why have the working and middle class in rich countries seen little to no
growth?
A) Outsourcing & Automation.
B) Immigration & International Conflict.
C) Automation & Immigration.
D) Immigration & Outsourcing.
1. What are differences between the GATT and WTO’s dispute settlement
system?
GATT Dispute Settlement System: Ad hoc committees were used to settle disputes,
on a case, by case basis. There was no established appeals board to assess panel
rulings. The General Agreement on Tariffs and Trade (GATT) had a few enforcement
mechanisms in place; moreover countries had the ability to obstruct the approval of
panel reports.
WTO Dispute Settlement System: Standing panels are set up within the WTO to
handle conflicts that arise ensuring there is a mechanism, in place, for dispute
resolution. The Appellate Body is an enduring entity tasked with evaluating panel
rulings. The World Trade Organization (WTO) possesses enforcement procedures
compared to other organizations, in this field due to its capacity to sanction retaliatory
actions in case a member does not adhere to a decision.
2. Can a Member challenge the WTO consistency of a measure by a private
party?
Yes, a member can challenge the WTO consistency of a member by a private party
because in WTO consistency means World Trade Organisation consistency have all
time dispute with the private company or by private party.
3. What is the prime object and purpose of the WTO dispute settlement system
and why is important to the multilateral trading system?
Within the World Trade Organization (WTO), the Dispute Settlement Mechanism
(DSM) is crucial because it establishes guidelines for settling trade disputes amongst
participating nations. This contributes to maintaining the trading system's confidence
and stability.
4. What is the WTO dispute settlement system’s preferred method of dispute
settlement? Why?
Nowadays, the WTO's dispute settlement mechanism is considered the most effective
dispute settlement mechanism in the international legal system. The WTO's preferred
method of dispute settlement is through mutually agreed solutions or consultations
between the parties, to encourage member states to resolve disputes amicably before
going to formal trial.
The consultation process helps the parties to agree on some differences between the
parties and can come to a mutual agreement. By consultation, the parties can talk and
reach a common agreement. Parties can negotiate outcomes that specifically address
their needs, avoiding the confrontational nature and potential rigidity of the council's
judgment or appeal, which also saves more time and money than litigation. Therefore,
this solution is prioritized for member states to ensure the maintenance of stable and
long-term cooperative relationships. However, If the consultation is unsuccessful, the
case of the parties will be adjudicated by the council or even the Appellate Body.
5. Why is the panels’ and Appellate Body’s task to clarify existing provisions of
the covered agreements an important task?
The task of clarifying the applicable provisions of the protected agreements of the
WTO councils and the Appellate Body is necessary, which will help maintain the
consistency, fairness, transparency and of the provisions. Moreover, there are many
long and complex provisions in WTO agreements, which can be interpreted in many
ways, so without clear guidance, it is easy for member states to misinterpret and
misapply.
By providing competent interpretations, councils and the Appellate Body help ensure
that disputes are resolved based on a common understanding of the rules, promoting
fairness in the dispute resolution process. This clarification also enhances legal
certainty, allowing countries and businesses to navigate the global trade landscape
with confidence, knowing that they are complying with established norms. Moreover,
the decisions made by these bodies contribute to the development of a precedent body,
guide future cases, and reduce the likelihood of repeated litigation on similar issues.
Finally, the role of councils and the Appellate Body in clarifying the terms is crucial
to ensuring a stable, fair, and rules-based international trading system.
6. What are the remedies for breach of WTO law?
There are three main types of remedies for violations of WTO law, and others may be
available:
“(i) The first is the withdrawal (or amendment) of the WTO Inconsistency Measure,
which is considered a final remedy;
(ii) The second type is reparations, a temporary remedy that is applied while waiting
for the final remedy
(iii) The third type is specifically retaliation which means the suspension of
concessions or other obligations. The DSU states that the second and third types are
not a substitute for the first.”1
In addition, during the application process, there are other remedies considered in
relation to whether the usual international law rule on compensation can be applied
when there is no specific rule in the DSU that excludes compensation for damages
suffered. This issue is related to the relationship between WTO law and international
law.
7. In your opinion, should a Member that causes significant damage to the
economy of another Member as a result of breach of WTO law compensate this
damage?
If a member of the WTO violates WTO law and inflicts substantial economic harm on
another member, that member ought to pay for the harm.
Basing on the WTO's primary goals, which consist of the following:
The WTO seeks to establish a trade environment that is predictable and steady in
order to promote economic expansion.
The WTO provides its members with procedures to resolve trade disputes amicably
and successfully.
The WTO strives to ensure that its members comply with the rules of the trading
system.
When one Member State violates its obligations and seriously weakens the economy
of another Member State, the fundamental principles on which the WTO was founded
are at risk.
Payments to aggrieved parties must meet the following conditions: Payments may
restore the affected member's financial situation to its pre-breach state.
1 Peter Van den Bossche & Werner Zdouc (2017), The Law and the Policy of the World Trade
Organization, Cambridge University Press, pg 205.
The ability to receive payments may deter other participants from engaging in similar
behavior.
Maintaining the integrity of the WTO: As a rules-based trading system, the WTO can
continue to maintain its credibility and effectiveness by holding its members
accountable for their actions.
A WTO Member State that violates WTO law and causes significant economic
damage to another Member State shall be liable for compensation for that damage,
regardless of the precise procedures normally used to determine and enforce
compensation.
8. Should customs duties, which were imposed in violation of WTO law, be
repaid to the importer?
The WTO is obliged to comply with the organization's rules and regulations in the
conduct of WTO members. That member is acting illegally a member applies customs
duties in violation of these rules.
The WTO's fair trade policy aims to create a fair and equitable trading environment.
Applying illegal customs duties distorts trade and can harm consumers and importers.
When a member violates its WTO obligations and harms another member, that
member is often required to pay compensation. Refunds of illegal customs duties are
unique in the form of reparations.
Illegal taxes can deter members from violating WTO law in the future to legally.
Due to this, if an importer can demonstrate that customs duties imposed on their
imports violate WTO law, they will be entitled to a refund of those duties.
9. What are the requirements that a panel request must meet? what are the
required qualifications for a panelist?
The requests must be submitted in writing. The parties should clearly identify the
specific measures under consideration. Provide a brief summary of the relevant details
of the legal basis of the complaint. Notify the Dispute Settlement Body (DSB) and all
WTO members when consultations have been held and the dispute has not been
resolved.
Criteria for a panelist:
Panelists must have expertise and experience in dispute settlement or adjudication of
international law, and must be familiar with the subject matter of the dispute. They
must be independent and not affiliated with any party to the dispute. Panelists must be
impartial and free from any conflicts of interest.
10. How and by whom are Members of the Appellate Body appointed?
Appellate Body (AB) is a standing agencies consisting of 7 members appointed by
Dispute Settlement Body (DSB) for a term of 4 years.
Members of the Appellate Body are selected from among reputable and recognized
figures with expertise in the field of law, international trade and in matters governed
by relevant agreements and they’re not affiliated with any government.
11. What can be appealed? Can factual findings ever be subject of appeal?
11.1 What can be appealed?
According to Article 17.62 of the DSB, an appeal is limited to the legal issues covered
in the panel report and the legal interpretations developed by the panel.
Therefore, the appellate review is limited to appeals on the leagal issues outlined in
the board’s report and the legal interpretations given by the board. The Council's
report can be appealed before the DSB approves it if the parties to the dispute,
especially the "winner" and the "loser" party, file an appeal with the Secretariat.
11.2 Can factual findings ever be subject of appeal?
According to Article 113 of the DSB, the function of the panel is to help the DSB
fulfill its responsibilities under the relevant agreements or agreements. The panel
should evaluate and make objective comments on the issues at hand, including an
2 An appeal shall be limited to issues of law covered in the panel report and legal
interpretations developed by the panel.
3 The function of panels is to assist the DSB in discharging its responsibilities under
this Understanding and the covered agreements. Accordingly, a panel should make an
objective assessment of the matter before it, including an objective assessment of the
facts of the case and the applicability of and conformity with the relevant covered
agreements, and make such other findings as will assist the DSB in making the
recommendations or in giving the rulings provided for in the covered agreements.
Panels should consult regularly with the parties to the dispute and give them
adequate opportunity to develop a mutually satisfactory solution.
objective assessment of the facts of the case and its applicability and conformity with
the relevant agreements, and make such comments, other conclusions may assist the
DSB in making recommendations or rulings provided for in the relevant agreements.
So, based on Articles 11 and Article 17.6 of the DSU, the factual findings other than
the panel's legal interpretations or conclusions, the Appellate Body can review a
panel's interpretation of WTO provisions as well as the panel's application of these
provisions to the facts in the case at hand.
Therefore, a factual finding may be considered for appeal when the appellant
considers that the finding was not made in a manner consistent with the requirements
of Article 11 of the DSB.
