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Environmental Regulations and Corporate StrategyA NAFTA Perspective$
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Alan Rugman, Julie Soloway, and John Kirton

Print publication date: 1999

Print ISBN-13: 9780198295884

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198295884.001.0001

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The Agriculture Disputes

The Agriculture Disputes

(p.162) 9 The Agriculture Disputes
Environmental Regulations and Corporate Strategy

Alan Rugman

John Kirton

Julie Soloway

Oxford University Press

As shown in the WTO Appellate Body's 1998 decision regarding Beef Hormones, industry protection, trade, and food safety may constitute fundamental issues on the global trade policy agenda. In this particular case, the WTO panel and the appeal body found that the EU enforced unjustifiable trade restrictions and that they veered away from the trading obligations established by the WTO. The fundamental problem lies in how the domestic administration of the measures imposed by the WTO SPS Committee can be influenced by domestic producers who attempt to obtain shelter against more competitive imports. As fresh food products are sensitive to deterioration, barriers to entry may come about, since foreign producers are unlikely to receive fair treatment. In this chapter, we explore the agricultural case in which the discriminatory application of sanitary and phytosanitary standards restricted trade in North America.

Keywords:   Beef Hormones, WTO panel, SPS Committee, domestic producers, foreign producers, trade restriction, sanitary standards, phytosanitary standards

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