WTO Panel Report on Airbus Dispute (DS316)

On October 6, 2004, the United States requested to the Dispute Settlement of the World Trade Organization for consultation with the Governments of Germany, France, the United Kingdom, and Spain (the "member States"), and with the European Communities ("EC") concerning measures affecting trade in large civil aircraft.

According to the request for consultations from the United States, measures by the EC and the member States provide subsidies that are inconsistent with their obligations under the SCM Agreement and GATT 1994. The measures include: the provision of financing for design and development to Airbus companies ("launch aid"); the provision of grants and government-provided goods and services to develop, expand, and upgrade Airbus manufacturing sites for the development and production of the Airbus A380; the provision of loans on preferential terms; the assumption and forgiveness of debt resulting from launch and other large civil aircraft production and development financing; the provision of equity infusions and grants; the provision of research and development loans and grants in support of large civil aircraft development, directly for the benefit of Airbus, and any other measures involving a financial contribution to the Airbus companies. The subsidies in question include those relating to the entire family of Airbus products (A300 through the A380)

The United States further notes that certain launch aid provided for the A340 and A380 appear to be illegal export subsidies in contravention of certain provisions of Article 3 of the SCM Agreement. The United States is also concerned that the measures appear to be inconsistent with Article XVI: 1 of GATT 1994.

The United States is further concerned that the measures appear to be causing adverse effects to US in a manner contrary to the provisions of Articles 5 and 6 of the SCM Agreement. The United States is concerned that the measures have caused and continue to cause nullification or impairment of benefits to the United States under GATT 1994 within the meaning of Article XXIII: 1.

On June 30, 2010The WTO issued the report of the Panel that had examined a complaint by the United States. In that Panel Report, certain recommendations have been stated which are as following:

1. As per the article 3.8 of the DSU, it has been concluded that, to the extent that the European Communities, France, Germany, Spain and the United Kingdom have acted inconsistently with the SCM Agreement, they have nullified or impaired benefits accruing to the United States under that Agreement.

2. According to article 4.7 of the SCM Agreement, taking into account the nature of the prohibited subsidies that the Panel have found in this dispute, it recommends that the subsidizing Member granting each subsidy found to be prohibited, withdraw it without delay and specify that this be done within 90 days.

3. According to article 7.8 of the SCM Agreement, in light of the Panel's conclusions with respect to adverse effects it recommends that, upon adoption of this report, or of an Appellate Body report in this dispute determining that any subsidy has resulted in adverse effects to the interests of the United States, the Member granting each subsidy found to have resulted in such adverse effects "take appropriate steps to remove the adverse effects or ... withdraw the subsidy".

--
Manish Sharma
LL.B. (Hons.), LL.M. (International Trade and Business Laws)
Faculty of Law,
ICFAI University, Dehradun,
Uttarakhand,
INDIA
E-mail: msharma28@gmail.com
Mobile No.: +91 9012372533

Suspension and termination of Anti-dumping duties on Price Undertaking

According to the Customs Tariff (Identification, Assessment and Collection of Antidumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Designated Authority may suspend or terminate investigation if the exporter concerned furnished an undertaking to revise his price to remove the dumping or the injurious effect of dumping as the case may be. No undertaking can however be accepted before preliminary determination is made. No anti-dumping duties are recommended on such exporters from whom price undertaking has been accepted. No price undertaking may, however, be accepted in case it is found that acceptance of such undertaking is impracticable or is unacceptable for any reason.

 

Rule 15 of the Anti-dumping Rules 1995 says that:

 

1.      The designated authority may suspend or terminate an investigation if the exporter of the article in question, -

                                i.            furnishes an undertaking in writing to the designated authority to revise the prices so that no exports of the said article are made to India at dumped prices, or

                              ii.            in the case of imports from specified countries undertake to revise the prices so that injurious effect of dumping is eliminated and the designated authority is satisfied that the injurious effect of the dumping is eliminated:

 

Provided, further that the designated authority shall complete the investigation and record its finding, if the exporter so desires, or it so decides.

 

2.      No undertaking as regards price increase under clause (ii) of the sub-rule (1) shall be accepted from any exporter unless the designated authority had made preliminary determination of dumping and the injury.

3.      The designated authority may, also not accept undertakings offered by any exporter, if it considers that acceptance of such undertaking is impractical or is unacceptable for any other reason.

4.      The designated authority shall intimate the acceptance of an undertaking and suspension or termination of investigation to the Central Government and also issue a public notice in this regard. The public notice shall, contain inter alia, the non-confidential part of the undertaking.

5.      In cases where an undertaking has been accepted by the designated authority the Central Government may not impose a duty under sub-section (2) of section 9A of the Act for such period the undertaking acceptable to the designated authority remains valid.

6.      Where the designated authority has accepted any undertaking under sub-rule (1), it may require the exporter from whom such undertaking has been accepted to provide from time to time information relevant to the fulfilment of the undertaking and to permit verification of relevant data:

 

Provided that in case of any violation of an undertaking, the designated authority shall, as soon as may be possible, inform the Central Government of the violation of the undertaking and recommend imposition of provisional duty from the date of such violation in accordance with the provisions of these rules.

 

The designated authority shall, suo moto or on the basis of any request received from exporters or importers of the article in question or any other interested party, review from time to time the need for the continuance of any undertaking given earlier.

--
Manish Sharma
LL.B. (Hons.), LL.M. (International Trade and Business Laws)
Faculty of Law,
ICFAI University, Dehradun,
Uttarakhand,
INDIA
E-mail: msharma28@gmail.com
Mobile No.: +91 9012372533

National Conference on Building Next Practices on Intellectual Property (IP) Management, 15-16 July 2010, Hotel Taj Krishna, Hyderabad

A national conference on IP is being held at Hotel Taj Krishna, Hyderabad, India in the month of July. Below is the information about the conference:-

Overview:

The national conference on building next practices on Intellectual Property (IP) management organized by The confederation of Indian Industry and Andhra Pradesh technology Development and Promotion Centre(APTDC) aims to take stock of the current scenario and adopt the next practices of IP management around the world, build an national and international network of professionals interested in the development of the nascent field of IP management as well as propose strategies for fostering the development of IP management best practices in India.

Background:
Intellectual Property has become a key consideration in day to day business decisions. IPR is an essential tool for achieving competitiveness in today’s business environment.

Many new products and services developed by companies and organizations embody different types of Intellectual Property (Patents, trademarks, designs, copyrights, trade secrets etc.). Companies need to dedicate resources and time for Creation, Protection and Management of Intellectual Property in order to achieve & sustain competitiveness at the market place.

While acquiring IP protection is an important initial step, effective Intellectual Property management means more than protecting a company’s Intellectual Property. It actually involves, in addition to protecting companies’ inventions, a company’s ability to commercialize its inventions, market its brands, license the know-hows, transfer technologies, conclude JVs and monitor & enforce IPRs. Leading companies and organizations increasingly consider Intellectual Property management as part of overall business plan and use it effectively in driving the business strategies.

The Need:

To be Competitive in Global environment, especially as the business is becoming Technology focused, it is necessary for the Corporates to align IPR and IP management in their business strategy so that they are under no threat of “Litigation “or “Infringement” Issues.

Creativity & Innovation are the essential ingredients to be nurtured if we plan to create more wealth out of Intellectual Property. It is important that there are proper mechanisms to identify invention to finally convert them into tangible assets for Corporate. This Mechanism can be triggered if the environment is conducive for IP Promotion, Identification & Protection. These three steps of channelising IP into Business is IP management.

IP has emerged as a key driver for building and sustaining competitive advantage in the contemporary knowledge economy. Policy advisors and decision makers regard IP as a means for promoting creativity and innovation and economic development. Firms view IP as a valuable corporate asset and a strategic business tool. Recent research indicates that over 50% of the value of many business organizations is attributed to IP. Increasing significance of IP is forcing business organizations to actively manage IP.

IP management education and research is in a nascent phase. Most business schools and faculties of management science have no IP management education and research programs. Furthermore, there is presently an acute shortage of resources (text books and case studies) and resource persons (lecturers and professors) on this subject. Although the number of research papers presented at the Academy of Management and similar meetings have been steadily increasing over the past years there is still much work to be done to integrate IP as part of mainstream management discipline.

What should be the research agenda in the field of IP management? How should academics and managers deal with the ever changing world of IP including ongoing developments at the national and international level? How do we bring together the disciplines of IP and management in a coherent manner which meets the test of rigor and relevance?

IP management has emerged as a major area of business competence. It has become as important as understanding innovation, technology, marketing, finance, corporate governance, industrial economics and strategy.

A level Playing field has to be set to channelise IP management for Wealth Creation Opportunities. In the same context Confederation of Indian Industry and APTDC is organising this National conference with an objective to :

Objectives of the National Conference:

• Develop an understanding of the basic concepts of IP management and learn about recent developments and next best practices in this field.
• Shape the future of IP management in India among Industry and Academia
• To provide a forum to learn implications of various important tools of Management of Intellectual Property Rights for enhancing competitiveness.
• Create a platform for Industry and Institutes to collaborate in this important Mission
• To share best Practices through case studies from leading corporates and Institutions.
• Establish linkages and partnerships with IP management professionals, teachers and researchers in the Country.

Important Technical Sessions to be covered:

• IPR’s and their strategic relevance: an overview
• Integrating IP with Management
• Role of IP Management in Enhancing Business Competitiveness
• Managing IPRs: Internal Assessment of Technology
• IPR’s Valuation, licensing and strategic alliances
• Management of IP : inter and intra-organizational issues
• Issues Relating to Commercialisation of IPRs
• Managing IPRs: Role of Networks and Strategic Alliances
• Developing a Road Map for the next best practices on IP Management

Who can Partner/Sponsor with us:

Law firms, Industry, Academic and Research Insitutions, Corporates, Government Agencies.

Who Should Atttend?

This conference will be beneficial to IP managers; consultants and professional who wish to shape the future of IP management Representatives from government agencies, including IP offices, business associations, chambers of commerce and other bodies with an interest in the subject of IP management education and research will also find the program useful.

This conference is also designed for professors, researchers and administrators and faculties of management science who seek a working knowledge of IP management with a view to launching educational and research programs in this emerging field.

Faculty:

Eminent IPR experts from the country and abroad, Policy makers and Practitioners will be invited to make presentations and share their experiences.

PROGRAMME CALENDER:

Date: 15-16 July 2010

Venue: Hotel Taj Krishna, Hyderabad
Timings: 9 AM - 6 PM (Both days)

Contact:

Kamaraju Chitrapu: 98492 39783(M), c.kamaraju@cii.in

Subhajit Saha: 98483 04423, s.saha@cii.in

Confederation of Indian Industry Andhra Pradesh Technology Development & Promotion Centre

I-II-252/9. Plot No.7, II Floor, Regal House, Motilal Nehru Nagar,

Begumpet, Hyderabad – 500 016, Andhra Pradesh, India.

Tel: 91 40 27765837/835/832, Fax: 91 40 27765836

The event information and reply form can be downloaded here

Call for Papers: RDI-NALSAR Conference On Legal Aid to Secure Land Rights to the Rural Poor: Role of Government, NGOs and Paralegals

In keeping with one of the objectives so stated in the concept note, Rural Development Institute in collaboration with NALSAR University of Law, Hyderabad is going to organize a National Conference on “Land, Poverty and Legal Aid Ensuring Secured Land Rights to the Rural Poor: The Role of Paralegals and Legal Aid” on April 10th & 11th, 2010 at NALSAR campus. As far as the rationale behind this conference is concerned, the discerning individuals are hereby requested to refer to the “Concept note”.

For participating or presenting papers in the conference, participants would have to fill in the registration form available at www.nalsarlawuniv.ac.in. If you wish to present a research paper in the conference, do kindly submit your abstract along with the registration form. The criterion for presenting the paper in the conference would be based on short-listing of selective abstracts by the selection committee and only the authors of the selected abstracts would be allowed to present the same in the conference. Thereafter, a month’s time will be given to the author for submitting the full-length paper and the papers so presented may be published in the form of a Book in due course of time.

For Event Webpage Click here

For details of the Call for Papers, Click here

For Registration form of the Conference, Click here

Draft Press Note 2010

Department of Industrial Policy and Procedures, Ministry of Commerce and Industry, Government of India has issued a 66 page draft Press Note of 2010 on the subject “FDI Regulatory Framework”. The press note was posted on the DIPP’s website and comments were invited on the same. The draft press note can be found here

By: Manish Sharma, LL.M. (International Trade and Business Laws), NALSAR.

E-mail: msharma28@gmail.com

One Day National Workshop on ‘SAARC Trade Relations: Legal Issues and Challenges’

South Asian Association of Regional Cooperation (SAARC) was established in 1985 by the Seven Member Countries of South Asia. In 2007, the membership increased to 8 with Afghanistan joining in. The M.K. Nambyar SAARCLAW Centre at NALSAR University of Law, established in 2003 is one of its kinds in the entire country in terms of its objectives. It has its own well equipped building for conducting lectures, conferences, meetings, moot courts, research and other activities. It has credible Fellowship Programmes with special emphasis on Post Graduate education and also Training Programmes for Law Teachers/Law Officials/Judges of SAARCLAW Region. One of the primary objectives of the Centre is to hold annual SAARCLAW conferences and conduct Research Projects on various legal issues concerning the SAARC region.

In furtherance of its mandate objective, the M.K. Nambyar SAARCLAW Centre has planned a one day national workshop on “SAARC Trade Relations: Legal Issues and Challenges”. The Workshop will be held on Saturday, 20th February, 2010 at the M. K. Nambyar SAARCLAW Centre, NALSAR University of Law, Justice City, Hyderabad.

The workshop is for a healthy discussion and debate on steps that need to be undertaken strengthening the economic cooperation within the region also focusing on SAARC’s role in the development of International Trade. The tentative themes of the Workshop shall be:

1. Rules of Origin (RoO) in the SAARC Region
2. Trade Barriers
3. Most Favoured Nations Treatment within the SAARC Region
4. Dispute Settlement Mechanism under SAPTA/SAFTA
5. SAARC’s Approach Towards WTO Issues
6. Informal Trade in the SAARC Region
7. Principle of Reciprocity and Non-reciprocity in SAPTA/SAFTA

This Workshop will explore the legal-cum-economic aspects of the SAARC and will provide a platform for discussion and aims to point towards possible outcomes to strengthen the legal cooperation and capacity building among the Member Countries.

Contact to participate: saarclawcentre@gmail.com

Website: www.saarclawcentre.org

India and Anti-dumping Laws : General-1

It is a matter of fact that India was a founding member of GATT 1947 and is also a founding member of WTO that came into existence on 1^st January, 1995. Under the WTO regime the GATT 1994 has been recognized as one of the important agreements on trade in goods which is more or less similar to GATT 1947 with few necessary amendments. WTO Member States concluded other separate agreements also which were the part of GATT 1947. ‘Agreement on Implementation of Article VI of General Agreement on Tariffs and Trade 1994’, commonly known as the ‘Agreement on Anti-Dumping’ is one such agreement.

India had committed to implement this agreement into its domestic law as part of a single undertaking. Sections 9A, 9B and 9C of the Customs Tariff Act, 1975 as amended in 1995 and the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 framed there under, form the legal basis for anti-dumping investigations and for the levy of anti-dumping duties. These laws are based on the Agreement on Anti-Dumping which is in pursuance of Article VI of GATT 1994.

Section 9A (1) says that where any article is exported from any country or territory to India at less than its normal value, then, upon the importation of such article into India, the Central Government may, by notification in the Official Gazette, impose an anti-dumping duty not exceeding the margin of dumping in relation to such article.

Further it states that margin of dumping is the difference between the product’s export price and its normal value. The normal value is the comparable price at which the goods under complaint are sold, in the ordinary course of trade, in the domestic market of the exporting country or territory. The export price of goods imported into India is the price paid or payable for the goods by the first independent buyer.

Paragraph 2.1 of Article 2 of the Agreement on Anti-dumping says, “For the purpose of this Agreement, a product is to be considered as being dumped, i.e. introduced into the commerce of another country at less than its normal value, if the export price of the product exported from one country to another is less than the comparable price, in the ordinary course of trade, for the like product when destined for consumption in the exporting country.”

In both the definitions following are the essential factors:

1. Export price less than Normal Value
2. Like Product
3. Material Injury to the Domestic Industry or Producers
4. Dumping Margin

If all the above factors exist then it is directly a case of dumping. And against that dumping, the Government of India can impose or levy anti-dumping duties to mitigate the material injury but to the extent of dumping margin or injury margin.

To be continued...

For an interpretation of the Anti-Dumping Agreement, kindly visit: WTO's website

By: Manish Sharma, LL.M. (International Trade and Business Laws), NALSAR.