You are a specialist in WTO Law. You have been consulted by Mr James Cornell, t
You are a specialist in WTO Law.
You have been consulted by Mr James Cornell, the in-house counsel of
“Apco Ltd.”, an English company specialising in chestnut purée for
babies. It also produces “Babypounce”, a mango fruit syrup that is very
similar to mango liquor.
Apco Ltd currently sells only in the UK
but has been so successful, especially with Babypounce, that it has
decided to extend its activities overseas. It needs however to build a
new plant as its capacities are already very close to the maximum. In
order to reduce costs, it has decided to build the plant in the north of
England. This area is characterised by a high unemployment rate and
persistent social problems, and therefore receives aid from various
bodies. In order to build its factory in the north of England, Apco Ltd
needs to get a financial contribution from two organisations. One is
funded by the city council in the north of England and the other one is a
charitable organization (raising money from donations from
expatriates). As a result of personal connections in government Apco
also expects to arrange a loan with a well-known English bank at the
favourable rate granted to the State.
M. Cornell is happy with
these arrangements as at the end of the day, Apco Ltd will be able to
build a new plant and therefore export its successful products. However,
one of the company’s main target areas, a State named ‘X’, has now
become aware of the existence of the subsidies that Apco Ltd will
receive. It therefore decides to prohibit all importation of Babypounce
and Chestnut purée for seven years, despite the risk of local riots
(babies need their Babypounce). The decision was taken by the government
of X one week after being made aware of the potential subsidies to
Mr. Cornell must sign papers that commit to the new factory
in two weeks’ time but there will be no need for a new plant if Apco
Ltd cannot enter X’s market. M. Cornell seeks your advice under WTO Law.
He asks you to identify any relevant issues and suggest the legal
Demonstrate a thorough understanding of the legal principles of international trade through WTO agreements.
Understand the remit, procedures and operation of the WTO.
Understand the legal interpretation of WTO agreements.