Good evening all,
The question that I have is basically homework.
Country A and C are member states of the World Trade Organisation (WTO). A trades regularly with C, but recently faced an issue. A is a major red wine exporter of C. Recently, C imposed a new internal taxation system for beverages. For all kinds of red wines, the taxation rate is 15%. For “Cherry”, the non-alcoholic energy drink that is made by a domestic brand of Country C, the taxation rate is 4%. Recommend if A has a prima facie case against C on the basis of violating the principle of National Treatment, to commence proceedings against C for its trade measure under the WTO dispute settlement system. State any relevant WTO law and cases and other authoritative sources to support your answer.
Right now I am looking at UNITED STATES - MEASURES AFFECTING ALCOHOLIC AND MALT BEVERAGES and Japan- Alcoholic Beverages as possible relevant cases since they deal with alcoholic beverages and internal taxes. In terms of relevant WTO law, I am looking at GATT Article III:1, III:2, and III:4 as they deal with internal taxes and protectionism, under the principle of national treatment.
I think the fact that the energy drink is non-alcoholic means that it is not 'like' red wine or even 'directly competitive or substitutable', so A might not have a prima facie case.
If any of you can recommend any other WTO laws or cases that might be relevant to this dispute, I would be grateful, or even any insights regarding this dispute.