Canada—Certain Measures Affecting the Automotive Industry
World Trade Organization, Appellate Body
WT/DS139, 142/AB/R (June 19, 2000)
Canada (defendant) imposed a tariff of 6.1 percent on imported automobiles. Canada then adopted orders that exempted certain imports from the tariff, including imports from companies that sold certain percentages of its automobiles in Canada and companies that used a certain percentage of Canadian materials in the manufacturing process. In effect, the exemption required the manufacturer to set up a manufacturing facility in Canada. Also, Canada closed the eligibility for the exemption in 1989. Several contracting parties of the General Agreement on Tariffs and Trade (plaintiffs) challenged the exemption scheme.
Rule of Law
Holding and Reasoning ()
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