Understanding of the purposes of free trade agreements

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Reference no: EM132840032

The EU banned all metal water bottles made with a coating called Allcoat, because of a concern that one of the chemicals in the coating, XYZ3, could leak into the water in the bottle and cause cancer. Scientific evidence strongly suggests that XYZ3 causes cancer in lab mice when they consume a large quantity, but research has not shown that it causes cancer in humans. DrinkToGo, a Canadian manufacturer of water bottles coated with Allcoat, claims that there is no proof that the XYZ3 used in the coating actually leaks into the water placed in their bottles and also claims that the amount of XYZ3 in the coating is too small to cause harm to humans.

-How can DrinkToGo have this issue addressed by the WTO?

-If you were a member of the WTO dispute resolution panel dealing with this dispute, would you allow the ban to continue? Explain the reason for your answer, using WTO principles.

-Assume that the WTO dispute settlement body holds that the ban violates WTO rules. If the EU refuses to lift the ban, what can Canada do?

Choose one free trade area or customs union that we have studied. Using your understanding of the purposes of free trade agreements and customs unions, and referring to course concepts, discuss three ways that your chosen arrangement benefits and/or harms the economies of the member countries. You may discuss both harms and benefits in your answer if you wish.

Reference no: EM132840032

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