CASE STUDY 3-1

Case Study 3-1



Case Study 3-1

Introduction

In this case European Communities, United States and Canada complained regarding the discriminatory liquor laws by Japan. For a thorough analysis and the legal concreteness of this case, a joint panel was established for clarifying the facts in this order.

Discussion

Statement of the Relevant Facts in the Case

The relevant facts in this case involved the complaint of European communities, United States, and Canada regarding the Japan's practice of taxation on Alcoholic Beverages. The complainants in this case was regarding the notion that the liquor is being exported to Japan was discriminated. They also claimed that this practice was entirely against the GATT Article III. Under this practice of Japan, they were levying heavy taxation on whisky, white spirits, cognac and Shochu was having lower comparative taxation (Bermann, 2007). According to the case by European communities, United States, and Canada, the Japanese liquor law is discriminatory as it makes technical conflicts with the GATT agreement. It encourages a discriminatory practice that is not in favor of the free trade justification and agreements set and promised by a multitude of registered countries. Following this crisis, they made launched their complaint.

An Analysis of the Legal Issues that were raised in the Case

After a thorough analysis and the legal concreteness of this case, a joint panel was established to for clarifying the facts in this order was the meeting of DSB. This meeting was held on September 27, 1995. The case discussed that this practice was entirely against the GATT Article III. GATT is also called as General Agreement on Tariffs and Trade. The agreements made under GATT were also incorporated in WTO. The General Agreement on Tariffs and Trade harmonize customs policies of the signatory parties. The treaty came into force in January 1948 and the secretariat ...