International Economic Law and Policy Blog

The First CPTPP Dispute: New Zealand vs. Canada on Dairy

New Zealand has just filed the first ever CPTPP consultations request, relating to Canadian measures "concerning the allocation of dairy tariff rate quotas (TRQs) under CPTPP (dairy TRQ allocation measures)." The request states:

2. Canada’s dairy TRQ allocation measures encourage chronic underfill of its dairy TRQs, reduce their commercial value for exporting CPTPP Parties, and undermine the market access that was negotiated under CPTPP.

3. Canada maintains 16 dairy TRQs under CPTPP.1 Canada’s dairy TRQ allocation measures allocate the entire quota available under each TRQ into up to three ‘pools’. These ‘pools’ can only be accessed by specific importer groups, in accordance with rules set out in Canada’s dairy TRQ allocation measures. Each importer group is defined under Canada’s dairy TRQ allocation measures, and importers that do not fall within a relevant pool are not eligible to apply for, or be allocated, quota. In addition, under Canada’s dairy TRQ allocation measures, retailers are not eligible to apply for an allocation under Canada’s dairy TRQs.

The claims of violation are as follows:

5. Canada’s measures appear to be inconsistent with several provisions of CPTPP, including Canada’s obligation to:

a. ‘progressively eliminate its customs duties on originating goods in accordance with its schedule to Annex 2D’ under Article 2.4(2), and Appendix A of Canada’s Schedule to Annex 2-D;

b. ‘ensure that its procedures for administering its TRQs … are fair and equitable’ under Article 2.28(2);

c. ‘ensure that its procedures for administering its TRQs … are no more administratively burdensome than absolutely necessary’ under Article 2.28(2);

d. ‘administer its TRQs in a manner that allows importers the opportunity to utilise TRQ quantities fully’ under Article 2.29(1);

e. not ‘introduce a new or additional condition, limit or eligibility requirement on the utilisation of a TRQ for importation of a good, including in relation to specification or grade, permissible end-use of the imported product or package size, beyond those set out in its Schedule to Annex 2-D (Tariff Commitments)’ under Article 2.29(2)(a);

f. ‘ensure that … any person of a Party that fulfils [Canada’s] eligibility requirements is able to apply and be considered for a quota allocation under the TRQ’ under Article 2.30(1)(a) and paragraph 3(c) of Appendix A of Canada’s Schedule to Annex 2-D;

g. ‘ensure that … it does not allocate any portion of the quota to a producer group’ under Article 2.30(1)(b);

h. ‘ensure that … it does not ... condition access to an allocation on the purchase of domestic production’ under Article 2.30(1)(b);

i. ‘ensure that … it does not ... limit access to an allocation to processors’ under Article 2.30(1)(b);

j. ‘ensure that … each allocation is made in commercially viable shipping quantities and, to the maximum extent possible, in the amounts that importers request’ under Article 2.30(1)(c); and

k. ‘ensure that … if the aggregate TRQ quantity requested by applicants exceeds the quota size, allocation to eligible applicants shall be conducted by equitable and transparent methods’ under Article 2.30(1)(e).

The official CPTPP text, with all of the relevant provisions noted above, is here.

We are tracking FTA disputes on WorldTradeLaw.net (still a work in progress, but see here and here -- the New Zealand complaint is not up there yet). There's an obvious parallel between this New Zealand complaint and the U.S. dairy complaint against Canada under the USMCA (that consultations request is here). The  U.S. complaint starts off this way:

Canada’s dairy TRQ allocation measures set limits on the quantity of certain dairy products1 that may be imported at a lower (within access) rate of duty. Furthermore, through the dairy TRQ allocation measures, Canada, sets aside and reserves a percentage of those within access quantities for particular importer groups. For all of its dairy TRQs, Canada sets aside and reserves a percentage of the quota for processors, and for ten of the TRQs2 an additional percentage is reserved for so-called “further processors.”3

And of course the USMCA panel found a violation. As I understand it, Canada and the U.S. are currently trying to work out a resolution, and I'm just going to speculate a bit here and note the possibility that New Zealand perhaps wants to put some pressure on Canada so as to make sure that the resolution does not hurt New Zealand exporters.

TPP Roster of Panel Chairs

From Australia DFAT:

Expressions of Interest: Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Roster of Panel Chairs

The Australian Government is seeking expressions of interest from suitably qualified individuals to be considered for nomination to the roster of panel chairs pursuant to the dispute settlement chapter of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Under the CPTPP dispute settlement chapter panellists must:

• have expertise or experience in law, international trade, other matters covered by the CPTPP or the resolution of disputes arising under international trade agreements
• be chosen strictly on the basis of objectivity, reliability and sound judgement
• be independent of, and not affiliated with or take instructions from any CPTPP Party, and
• comply with the Code of Conduct¹ [PDF] in the Rules of Procedure² [PDF].

Suitably qualified individuals wishing to be considered for nomination to the CPTPP roster of panel chairs, should complete the attached template CV [DOCX] and email it, together with an expression of interest of no more than 200 words, to Trade.Law@dfat.gov.au by 1700 AEDT Monday 11 March 2019.

Individuals deemed suitable for nomination will be subject to a vetting process prior to nomination. Nomination does not guarantee appointment to the CPTPP roster of panel chairs.

Indian Journal of International Economic Law: Call for Papers

The Indian Journal of International Economic Law (IJIEL) is a law journal published by National Law School of India University, Bangalore (NLSIU) under the patronage of the Indian government sponsored chair on WTO Law. The Journal is oriented towards publishing academic work that considers the legal issues in the field of international economic law from a comparative perspective and/or the perspective of the developing world. The IJIEL accepts academic submissions in the form of articles, notes, comments or book reviews. IJIEL is now inviting submissions for Volume 8(1) and 8(2).

Volume 8(1):

Continuing with the past tradition, Volume 8(1) will be a general edition dealing with a host of legal issues in the field of international economic law, which includes multidisciplinary research concerning the WTO, trade laws at various levels of government, financial institutions, regulatory subjects such as taxation and competition policy, various services sectors such as banking and brokerage, linkages to human rights and cultural problems and international commercial arbitration.

Volume 8(2):

This year, considering the contemporary relevance of the Trans Pacific Partnership, IJIEL is coming up with a special issue on the “Implications of the Trans-Pacific Partnership”. The Trans-Pacific Partnership is expected to reshape business practices and trade law regime across the world. We have already received a very enthusiastic response for this issue and hope the student community would also want to contribute to the scholarship on this contemporary topic.

IJIEL is now accepting submissions for both the issues under the following categories:

1.  Articles (5000 to 12000 words) must deal with a theme of interest or importance comprehensively and are expected to show an extensive coverage of existing literature and a high level of analysis.               
2. Essays for the Law in Focus section (3000 to 5000 words) must concisely analyse contemporary legislations, landmark treaties or other specific issues in international economic law of a contemporary nature.
3. Case Notes, Legislative Comments and Book/Article Reviews (2000 to 7000 words).

The Editorial Board invites submissions for Volume No.8(1) and 8(2) of 2016. The Journal follows a rolling submissions policy and the deadline for the forthcoming volume is 25th March, 2016. Please send in your queries or submissions to ijiel.nls@gmail.com.

Financial University Organizes Conference on Russia and the WTO

On 19-20 May 2015, the Financial University of the Russian Federation held its first international conference on the topic of "WTO Law in the Legal System of the Russian Federation: Problems of Application and Teaching."  To my knowledge, this was the first international legal conference held to address the Russian Federation's 2012 accession to the World Trade Organization (WTO) and the current role of the Russian Federation in the WTO.  The Financial University under the Government of the Russian Federation (Finuniversitet) is a leading publicly-funded institution of higher professional education (whose roots go back to the early 20th century).  The conference was supported by a grant from the U.S. Russian Foundation for Economic Advancement and the Rule of Law (USRF).

The conference consisted of over two dozen presentations regarding international trade law and policy and the trade law of the Russian government. 

Among the main lecturers on the first day of the conference were: Jan Bohanes, senior counsel of the Advisory Centre on WTO Law (Geneva), who lectured on constructed normal value in antidumping; Professor Steve Charnovitz of George Washington University Law School (Washington, D.C.) who lectured on the WTO-plus provisions in the Russian WTO accession package; Professor Anatoly Kapustin, Head of the Legal Comparative Research Centre who lectured on Russia and WTO Law; Professor Vasilka Sancin of the University of Ljubljana who lectured on models for an appellate mechanism in investor-state dispute settlement; Anait Smbatyan, Senior Expert at the WTO Expertise Center (Moscow) who lectured on WTO implementation; Eric M. Solovy, partner at Sidley Austin LLP (Washington, DC) who lectured on the obligations of and caselaw under the WTO Agreement on Trade-Related Intellectual Property Rights (TRIPS) and the WTO Agreement Subsidies and Countervailing Measures (SCM).  Excellent additional presentations were made by Mark G. Pomar, President of USRF and by Professor and Deputy Rector Dmitry Sorokin of Finuniversitet.

On the second day of the conference, two parallel workshops were held featuring scientific presentations by leading academics and practitioners from Moscow and other Russian cities.  Several presentations addressed the challenges and opportunities of teaching international economic law to Russian students.  In addition, Professor Alexey N. Ruzhin of the Russian Foreign Trade Academy gave a lecture on the enforcement of international trade and customs law in the Russian economy.

Organizing a major global conference on WTO law is a difficult task and Financial University Associate Professor Igor Shulyatyev is to be commended for planning and carrying out a landmark conference on key policy and technical challenges facing the Russian government in its WTO membership.  In the future, the Financial University should consider building on its success and holding a second annual conference in 2016.