Does airmania law fall under the tbt agreement

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Reference no: EM133393618

Case Study: The State of Airmania is a developed country with very high environmental standards applicable to domestic industries. Consumers in Airmania have a strong demand for environmentally friendly products. They also have the technology to manufacture environmentally friendly products. The State of Bardon is a developing country with considerable industrial capability. It is a beneficiary of export driven development and is an important trading partner of Airmania. Airmania imports a large portion of Bardon's manufactured goods. While the State of Bardon has many environmental laws on its books, they are seldom enforced. Economic advancement for now plays a more important role than environmental protection.

Both Airmania and Bardon are founding Members of the WTO Agreement. Airmania has just introduced a law implementing a variation on an "eco-labelling programme" pursuant to which manufactured goods that satisfy certain criteria will be eligible to be labelled as "Eco-Friendly". The criteria will be developed and administered by a local non-governmental organization in Airmania known as "Eco-Lab". Eco-Lab will examine all phases of a given product's life-cycle (a cradle-to-grave analysis). This will include an analysis of how a product is made (the production processes used and the environmental implications of these processes), as well as environmental factors associated with a product's packaging, its use, and its subsequent disposal. Eco-Lab will be entirely responsible for establishing the criteria and testing whether products satisfy the criteria and can wear the "Eco-Friendly" label.

Conformity with Airmania's programme is voluntary - in other words a manufacturer in Bardon will not need a label from Eco-lab to sell its products in Airmania. However, it is expected that having the "Eco-Friendly" label will make products very popular among Airmania's environmentally conscious consumers. You are a consultant for industrial exporters in the State of Bardon. Your clients are worried that the eco-labelling scheme will make it more difficult to sell their goods in Airmania. Your clients have approached you with questions concerning the WTO Agreement, in particular the TBT Agreement.

Questions:

a) Does Airmania's law fall under the TBT Agreement?
b) If yes, is it a technical regulation, a standard or a conformity assessment procedure?
c) What are Airmania's obligations under the TBT Agreement with respect to notification and transparency?
d) What are Airmania's obligations with respect to national treatment and MFN treatment?
e) Is Airmania's objective legitimate? How does this point affect your analysis?
f) Is it significant that because of their environmental knowledge and production skills, Airmania's domestic industries may benefit from the labelling scheme?
g) Is Airmania allowed pursuant to the TBT Agreement to implement the scheme described above? If not, what changes must be made?
h) How is your analysis affected by the fact that the labelling criteria includes processes and production methods?
i) What would your evaluation of this dispute be under GATT Articles III and XX of the GATT 1994?

Reference no: EM133393618

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