1 The Law of International Trade and the Multilateral Trading System 1
Ⅰ.Some Background Considerations 1
A.What Is the Law of International Trade? 1
B.Distinguishing the Law of International Business Transactions and the Law of International Trade 4
1.The Law of International Business Transactions 4
2.The Law of International Trade 5
3.Three Levels of Analysis 7
Notes and Questions 9
Problem 1-1 10
Ⅱ.International Trade Flows 10
Problem 1-2 11
A.Trade in Goods 12
B.Services Trade 12
C.Foreign Direct Investment 17
D.Technology Trade 17
Notes and Questions 18
Problem 1-3 19
Ⅲ.The Principal Global Economic nstitutions 20
A.The World Bank 21
Notes and Questions 22
B.The International Monetary Fund 22
Notes and Questions 23
Problem 1-4 24
C.The World Trade Organization （WI'O） 24
Mitsuo Matsushita, Thomas J.Schoenbaum, and Petros C.Mavroidis, The World Trade Organization: Law, Practice and Policy 25
Notes and Questions 27
Ⅳ.The Case for Free Trade: A Brief Look at International Economics 29
A.Arguments in Favor of Free Trade 29
Problem 1-5 29
Douglas Irwin, Free Trade Under Fire （2004） 30
Notes and Questions 41
B.United States-China Economic Relations 44
Problem 1-6 44
1.The Growing U.S.Trade Deficit with China 44
2.Currency Valuation Issues and “Hoarding” by China 45
3.Risks Created by the Trade Deficit with China 46
Notes and Questions 48
Ⅴ.Negotiating Trade Concessions 50
The Doha Development Agenda of 2001 51
Notes and Questions 52
Ⅵ.Dispute Settlement 52
A.General Considerations 52
Notes and Questions 54
Notes on Implementation and Remedies 56
United States—Standards for Reformulated and Conventional Gasoline 58
Problem 1-7 59
Problem 1-8 60
B.Trade Remedies 60
C.Nullification or Impairment 61
Problem 1-9 62
United States—Taxes on Petroleum and Certain Imported Substances 62
Problem 1-10 64
EEC—Payments and Subsidies Paid to Processors and Producers of Oilseeds and Related Animal-Feed Proteins 64
Japan—Measures Affecting Consumer Photographic Film and Paper 66
Notes and Questions 70
D.Burden of Proof 71
Canada—Measures Affecting the Importation of Milk and the Exportation of Dairy Products 72
Notes and Questions 77
E.Principles of Interpretation and Status of Adopted Reports 78
Problem 1-11 78
Japan —Taxes on Alcoholic Beverages 78
Notes and Questions 81
F.Trade Retaliation Under National Laws 82
Problem 1-12 82
Mitsuo Matsushita, Thomas J.Schoenbaum, and Petros C.Mavroidis, The World Trade Organization: Law,Practice and Policy 83
Notes and Questions 86
United States—Sections 301-310 of the Trade Act of 1974 86
Notes and Questions 90
Ⅶ.Preferential Trade Agreements 90
A.Introduction 90
Problem 1-13 94
Problem 1-14 94
B.The North American Free Trade Agreement: An Overview 95
Problem 1-15 97
Note on Labor and Environmental Standards in Preferential Trade Agreements 97
Note on Worker Productivity 98
2 The Implementation of International Trade Obligations in the Domestic Legal Order 101
Ⅰ.Introduction 101
Ⅱ.Domestic Implementation of International Trade Obligations 102
A.The United States 103
1.The Executive Branch 103
2.The Legislative Branch 107
3.The Judicial Branch 107
4.State and Local Government 107
5.Problems in the Allocation of Power over Trade 107
a.Negotiating a Trade Agreement 107
b.Treaty versus Executive Agreement 108
United States Department of State, Foreign Affairs Manual Circular No.175 （2d ed.1985） 109
Notes and Questions 109
c.Presidential Power over International Trade 109
Problem 2-1 110
United States v.Capps, Inc 110
Dames ? Moore v.Regan 113
Notes and Questions 118
d.The Clash Between State and Federal Power 118
Problem 2-2 118
Problem 2-3 119
Crosby v.National Foreign Trade Council 119
Notes and Questions 122
Problem 2-4 123
B.The European Union 124
Agreement Establishing the World Trade Organization 127
Problem 2-5 133
Ⅲ.The Effect of Ⅲnternational Trade Agreements on Domestic Law and Resolving Conflicts Between International and Domestic Law 133
A.The United States 133
Problem 2-6 134
Problem 2-7 134
The Uruguay Round Agreements Act （1994） 134
Notes and Questions 137
Problem 2-8 138
B.The European Union 138
Portuguese Republic v.Council 139
Notes and Questions 141
3 The Core Principles of the WTO: Most Favored Nation and National Treatment 143
Ⅰ.Introduction 143
Ⅱ.The Most Favored Nation Principle 144
Problem 3-1 145
Problem 3-2 146
Problem 3-3 146
Problem 3-4 146
A.Scope of the MFN Obligations 147
Problem 3-5 147
Problem 3-6 147
Belgian Family Allowances （Allocations Familiales） 147
Notes and Questions 149
B.The “Like Product” Issue 150
Treatment of Germany of Imports of Sardines 150
Notes and Questions 153
Problem 3-7 153
C.De Facto Discrimination 153
Canada —Certain Measures Affecting the Automotive Industry 153
Notes and Questions 157
D.Exceptions to MFN Obligations 158
Ⅲ.National Treatment 159
Problem 3-8 160
Notes and Questions 161
A.Internal Taxes and Charges 161
Japan —Taxes on Alcoholic Beverages 161
Canada —Certain Measures Concerning Periodicals 168
Notes and Questions 176
B.Government Regulation 177
Problem 3-9 177
Italian Discrimination Against Imported Agricultural Machinery 178
Problem 3-10 182
Korea—Measures Affecting Imports of Fresh, Chilled and Frozen Beef 182
Notes and Questions 190
Problem 3-11 191
C.Government Procurement 192
Norway—Procurement of Toll Collection Equipment for the City of Trondheim 193
Notes and Questions 196
4 Intellectual Property and TRIPs 199
Ⅰ.Introduction 199
A.Intellectual Property and International Trade 200
B.Intellectual Property and the WTO 202
C.TRIPs: An Overview 203
Ⅱ.Copyright 204
Phil Collins v.Imtrat Handelsgesellschaft GmbH 205
Notes and Questions 209
Ⅲ.Patents 210
A.Introduction 210
Problem 4-1 212
Notes and Questions 213
Problem 4-2 213
Problem 4-3 213
B.TRIPs and Pharmaceutical Patents 214
Problem 4-4 215
Problem 4-5 215
1.The Doha Declaration 216
DOHA WTO Ministerial Conference 2001: TRIPs and Public Health 216
Problem 4-6 217
2.The Implementation Decision 218
Implementation of Paragraph 6 of the Doha Declaration on the TRIPs Agreement and Public Health 218
Notes and Questions 219
3.Exceptions and Discrimination 220
Problem 4-7 220
Canada—Patent Protection of Pharmaceutical Products 221
Notes and Questions 229
Ⅳ.Trademarks and Geographical Indications 229
A.Trademarks 229
Problem 4-8 232
Problem 4-9 233
McDonald's Corp.v.Joburgers Drive-Inn Restaurant （Pty） Ltd 234
Notes and Questions 241
Problem 4-10 241
United States —Section 211 Omnibus Appropriations Act of 1998 242
Notes and Questions 249
B.Geographical Indications 250
Problem 4-11 250
Problem 4-12 250
Problem 4-13 250
Consorzio del Prosciutto di Parma v.Asda Stores, Ltd 251
Notes and Questions 256
Problem 4-14 257
Ⅴ.Enforcement Under TRIPs 257
A.Commercial Piracy 257
Statement of Professor Daniel Chow before the Senate Government Oversight and Management Subcommittee,April 20, 1994 260
Oral Testimony of Professor Daniel Chow before the United States-China Economic and Security Review Commission,June 8, 2006 262
Note on Trade Sanctions Under U.S.Special 301 262
Notes and Questions 263
Problem 4-15 264
B.TRIPs Enforcement Obligations 264
1.General Obligations 264
Problem 4-16 264
Notes and Questions 265
2.Criminal Enforcement 265
Problem 4-17 265
Notes and Questions 265
3.Civil and Administrative Enforcement 266
Notes and Questions 267
4.Border Controls 267
a.Customs Seizure and Forfeiture 267
Notes and Questions 268
b.Section 337 Exclusion Orders 269
Fuji Photo Film Co., Ltd.v.International Trade Commission 270
Notes and Questions 276
5 Trade in Services and the GATS 277
Ⅰ.Introduction 277
A.GATS, TRIPs, and GATT Compared 278
Ⅱ.The Definitions of “Services” and “Modes of Supply” 278
Notes and Questions 280
Ⅲ.GATS Obligations 281
A.General Obligations 282
Problem 5-1 283
Problem 5-2 284
Problem 5-3 284
B.Obligations for Committed Sectors 284
Problem 5-4 286
Problem 5-5 286
Problem 5-6 286
Notes and Questions 286
Note on the Lists of Article Ⅱ （MFN） Exemptions 289
Ⅳ.Market Access Commitments 289
Problem 5-7 291
Format for Country Schedules of Specific Commitments 291
Sample Schedule of Commitments: Arcadia 292
Problem 5-8 292
United States—Measures Affecting the Cross-Border Supply of Gambling and Betting Services 293
Notes and Questions 304
Note on Cross-Border Trucking Services Under NAFTA 306
Ⅴ.Sectoral Annexes to the GATS 307
Problem 5-9 308
Mexico—Measures Affecting Telecommunications Services 309
Notes and Questions 317
6 Foreign Direct Investment and TRIMS 319
Ⅰ.Introduction 319
Problem 6-1 319
A.FDI Within World Trade 320
Notes and Questions 326
Ⅱ.The Agreement on Trade-Related Investment Measures （TRIMS） 326
Problem 6-2 327
Canada—Administration of the Foreign Investment 327
Review Act 327
Problem 6-3 332
Indonesia —Certain Measures Affecting the Automotive Industry 332
Notes and Questions 341
Problem 6-4 341
Problem 6-5 341
Note on the Outlook for a General Agreement on Investment in the WTO 342
7 Trade in Goods: Customs and Tariff Law 345
Ⅰ.Introduction 345
A.Tariff Concessions 346
B.Economic and Social Policy Implications of Tariffs 347
Notes and Questions 348
Problem 7-1 349
Ⅱ.GATT Rules on Tariffs and Customs 349
Problem 7-2 349
Problem 7-3 350
Problem 7-4 350
Problem 7-5 350
Notes and Questions 350
Ⅲ.The Harmonized Tariff System 352
Problem 7-6 353
Problem 7-7 354
Notes and Questions 354
Harmonized Tariff Schedule of the United States 355
Ⅳ.Customs Procedures 358
Ⅴ.Product Classification 360
A.The WTO Rules 360
European Communities—Customs Classification of Certain Computer Equipment 360
Problem 7-8 365
European Communities—Customs Classification of Frozen Boneless Chicken Cuts 365
Notes and Questions 370
Problem 7-9 370
Canada/Japan—Tariff on Import of Spruce, Pine, Fir（SPF） Dimension Lumber 370
Spain - Tariff Treatment of Unroasted Coffee 372
Notes and Questions 373
B.The United States 373
Problem 7-10 374
Problem 7-11 374
Bausch ? Lomb, Inc.v.United States 375
Len-Ron Manufacturing Co., Inc.v.United States 378
Mead Corporation v.United States 383
Problem 7-12 387
Problem 7-13 387
Notes and Questions 388
C.The European Union 388
Council Regulation 2658/87 388
E.I.DuPont deNemours, Inc.v.Commissioners of Customs and Excise 389
Peacock AG v.Hauptzollamt Paderborn 391
Notes and Questions 393
Ⅵ.Valuation 394
A.The WTO Rules 394
Problem 7-14 394
Problem 7-15 395
B.United States Law 395
Century Importers, Inc.v.United States 395
Luigi Bormioli Corp., Inc.v.United States 398
Notes and Questions 405
Problem 7-16 405
C.European Union Law 406
Hans Sommer GmbH v.Hauptzollamt Bremen 406
Notes and Questions 407
Ⅶ.Rules of Origin 408
A.WTO Standards 408
B.United States Law 409
Problem 7-17 409
Koru North America v.United States 409
SDI Technologies, Inc.v.United States 414
Notes and Questions 418
C.European Union Law 418
Brother International GmbH v.Hauptzollamt Giessen 419
Problem 7-18 421
Ⅷ.Customs and Free Trade Areas 422
Cummins Inc.v.United States 422
Problem 7-19 426
Problem 7-20 426
Problem 7-21 426
Note on Determining Origin Under NAFTA 426
Article 401 427
NAFTA: A Guide to Customs Procedures U.S.Department of Commerce Guidelines 427
Notes and Questions 431
8 Non-Tariff Trade Barriers 433
Ⅰ.Introduction 433
Ⅱ.Quotas 433
A.Background 433
Problem 8-1 435
B.GATT Rules on Quotas 436
1.Overview 436
2.Article ⅩⅠ: The “General Elimination” Rule 438
Problem 8-2 438
Problem 8-3 438
Japan —Trade in Semi-Conductors 439
Notes and Questions 445
Problem 8-4 445
Canada—Import Restrictions on Ice Cream and Yoghurt 446
Notes and Questions 450
3.The Administration of Quotas 450
European Communities—Regime for the Importation, Sale and Distribution of Bananas 451
Notes and Questions 457
Ⅲ.Agricultural Trade 457
Problem 8-5 460
Problem 8-6 461
Chile—Price Band System and Safeguard Measures Relating to Certain Agricultural Products 461
Notes and Questions 466
Ⅳ.Technical Regulations and Product Standards 466
Problem 8-7 467
Problem 8-8 467
Problem 8-9 468
Problem 8-10 468
European Communities —Trade Description of Sardines 469
Problem 8-11 480
Ⅴ.State Trading Enterprises 480
Problem 8-12 481
Canada—Measures Relating to Exports of Wheat and Treatment of Imported Grain 482
Notes and Questions 488
9 General Exceptions: Trade and Civil Society 489
Ⅰ.Introduction 489
Notes and Questions 491
Ⅱ.Environmental Protection 492
Problem 9-1 492
Problem 9-2 492
Problem 9-3 492
United States—Import Prohibition of Certain Shrimp and Shrimp Products 493
United States—Import Prohibition of Certain Shrimp and Shrimp Products Recourse to Article 21.5 by Malaysia 502
Notes and Questions 506
Note on Environment and Trade 507
Problem 9-4 510
Ⅲ.Protection of Human Health and Safety 510
European Communities—Measures Affecting Asbestos and Asbestos-Containing Products 510
Note on the “Necessary” Requirement in GATT Article ⅩⅩ 515
Notes and Questions 517
Ⅳ.Food Safety: Sanitary and Phytosanitary Measures 519
A.Introduction 519
Problem 9-5 520
Problem 9-6 520
European Communities—Measures Concerning Meat and Meat Products （Hormones Case） 521
Notes and Questions 533
Note on the EC Biotech Products Case 534
Ⅴ.Workers' Rights 535
Problem 9-7 537
Problem 9-9 537
Problem 9-9 538
Note on Human Rights and International Trade 538
10 Safeguards 539
Ⅰ.Introduction 539
Ⅱ.Safeguards Under the WTO 540
Notes and Questions 541
Problem 10-1 544
Problem 10-2 545
Problem 10-3 545
Ⅲ.Safeguards Under U.S.Law 545
Corus Group PLC v.International Trade Commission 547
Problem 10-4 552
Consumers Union of the United States, Inc.v.Kissinger 552
Notes and Questions 557
Case Study One: The U.S.Auto Safeguards of 1981 558
Problem 10-5 558
Problem 10-6 558
Report to the President on Certain Motor Vehicles and Certain Chassis and Bodies Thereof 559
The U.S.-Japan Voluntary Restraint Agreement of 1981 565
Notes and Questions 567
Case Study Two: The U.S.Steel Safeguards Case of 2002 568
Problem 10-7 568
Report Submitted by President George W.Bush to the U.S.Congress （2002） Pursuant to Section 203（B）（1） of theTrade Act of 1974, as Amended 568
Problem 10-8 571
United States—Definitive Safeguard Measures on Imports of Certain Steel Products 571
Notes and Questions 581
Note on import Restrictions to Safeguard Balance of Payments 584
11 Developing Countries 587
Ⅰ.Introduction 587
A.Overview of Developing Countries 587
B.What Is a Developing Country? 589
C.The History of Developing Countries Within the GATT/WTO 590
Notes and Questions 595
Note on the Application of Safeguards and Quotas Concerning Textiles and Clothing 595
Note on Differing Views of Development 597
Problem 11-1 597
Ⅱ.The GATT and Developing Countries 598
Problem 11-2 598
Problem 11-3 598
Notes and Questions 599
Ⅲ.Developing Country Preference Systems Under the WTO 599
A.The Generalized System of Preferences for the Trade in Goods 599
1.The United States 599
Problem 11-4 600
Problem 11-5 600
19 U.S.C.§2461 600
19 U.S.C.§2462 601
19 U.S.C.§2463 601
Torrington Co.v.United States 603
Notes and Questions 608
2.The European Union 608
Problem 11-6 608
Problem 11-7 609
European Communities—Conditions for the Granting of Tariff Preferences to Developing Countries 609
Notes and Questions 620
B.Special and Differential Treatment Under Other WTO Agreements 620
Notes and Questions 621
Ⅳ.Agricultural Trade Subsidies 621
Problem 11-8 623
European Communities—Export Subsidies on Sugar 623
Note on U.S.—Upland Cotton 632
Postscript: The Growing Clout of Developing Countries: Implications for the Future of the WTO 636
12 Unfair Trade Remedies: Anti-Dumping and Countervailing Duties 639
Ⅰ.Introduction 639
Export America 641
Notes and Questions 643
Problem 12-1 644
Ⅱ.Dumping and Anti-Dumping Duties 644
A.The Economic and Political Debate 644
Michael K.Young, United States Trade Law and Policy 644
Thomas J.Schoenbaum, Market Contestability and Reform of the Antidumping Laws 645
Backgrounder, The Heritage Foundation, No.261 648
Notes and Questions 649
Problem 12-2 652
Problem 12-3 652
B.The Operation of the U.S.Anti-Dumping Laws: Procedural Aspects 652
Michael K.Young, United States Trade Law and Policy 653
Note on Appeals of Anti-Dumping Cases to Binational Panels Under NAFTA 659
C.The Calculation of Anti-Dumping Duties 660
Problem 12-4 661
Problem 12-5 661
Problem 12-6 661
Problem 12-7 661
1.How Dumping Is Determined 661
Notes and Questions 664
a.Dumping Calculations 665
Notes and Questions 668
Problem 12-8 670
D.Injury Analysis 671
Problem 12-9 671
1.Material Injury 671
Sandvik AB v.United States 672
2.Causation 676
Nucor Corporation v.United States 676
Notes and Questions 680
E.International Law Discipline on Anti-Dumping Proceedings: The WTO Antidumping Agreement 681
1.WTO Challenges to U.S.Anti-Dumping Law: Policy Issues 682
Problem 12-10 682
United States—Anti-Dumping Act of 1916 682
Notes and Questions 684
Problem 12-11 686
2.Procedural Aspects of U.S.Law Under the WTO 686
United States —Anti-Dumping Measures on Certain Hot-Rolled Steel Products from Japan 687
Notes and Questions 692
3.Dumping Determinations 694
United States—Measures Relating to Zeroing and Sunset Reviews 694
Notes and Questions 700
4.The Material Injury Analysis 700
European Communities—Anti-Dumping Duties on Malleable Cast Iron Tube or Pipe Fittings from Brazil 701
Notes and Questions 709
Ⅲ.Subsidies and Countervailing Measures 710
A.Introduction 710
B.The Economic and Political Rationales for Policies Against Subsidies 712
Types of Subsidies 712
The Economic Debate over Subsidies 713
Michael K.Young, United States Trade Law and Policy 714
Problem 12-12 715
Notes and Questions 716
C.Challenging Subsidies at the WTO: The Subsidies and Countervailing Measures Agreement 716
1.Defining Subsidies 717
2.General Framework 717
3.Agricultural Subsidies 718
4.Prohibited Subsidies 719
United States —Tax Treatment for “Foreign Sales Corporations” 719
Notes and Questions 724
5.Actionable Subsidies 727
Problem 12-13 727
Indonesia —Certain Measures Affecting the Automobile Industry 728
6.WTO Remedies for Subsidization 737
United States —Tax Treatment for “Foreign Sales Corporations” 737
Notes and Questions 743
D.Countervailing Duty Procedures Under U.S.Law 744
Michael K.Young, United States Trade Law and Policy 745
Problem 12-14 748
Problem 12-15 748
Problem 12-16 748
Notes and Questions 749
E.WTO Standards for Countervailing Duty Investigations 749
United States —Countervailing Duty Investigation on Dynamic Random Access Memory Semiconductors （DRAMS） from Korea 749
Problem 12-17 757
Notes and Questions 757
Note on the Privatization of State-Owned Enterprises 758
Note on the U.S.—Canada Softwood Lumber Case 759
13 Export Controls 761
Ⅰ.WTO Export Rules 761
Note on Multilateral Export Controls 763
Ⅱ.U.S.Export Controls 763
A.Introduction 763
B.Export Controls Under the EAA and the EAR 764
1.What Is Being Exported? 766
2.Where Is the Destination of the Export? 767
3.Who Will Receive the Item? 768
4.What Use Will Be Made of the Item? 769
Notes and Questions 769
Problem 13-1 770
Problem 13-2 770
Problem 13-3 770
Problem 13-4 770
Excerpts from U.S.Export Administration Regulations 771
Export Control Classification Numbers 771
Ⅲ.U.S.-Ⅲmposed Embargoes and Trade Restrictions on Foreign Countries 774
A.Introduction 774
Problem 13-5 775
B.The Cuban Embargo 775
Empresa Cubana Del Tabaco v.Culbro Corp 776
Notes and Questions 784
C.The Helms-Burton Act 784
Organization of American States: Inter -American Juridical Committee Opinion Examining the U.S.Helms-Burton Act 786
Opinion of the Inter-American Juridical Committee in Response to Resolution AC/Doc 3375/96 of the General Assembly of the Organization Entitled “Freedom of Trade and Investment in the Hemisphere” 786
Notes and Questions 790
Problem 13-6 791
Problem 13-7 791
Problem 13-8 792
Ⅳ.Anti-Boycott Regulations 792
Problem 13-9 793
United States v.Meyer 793
Notes and Questions 796
Bibliographical Note 799
Table of Cases 809
Index 815