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Canada—Certain Measures Concerning Periodicals
World Trade Organization, Appellate Body
WT/DS31/AB/R (June 30, 1997)
Canada (defendant) imposed several laws and regulations involving split-run periodicals, which are editions of a periodical originally produced for another market but also shipped to the Canadian market with advertising specifically targeted at Canada. The measures included a prohibition on imports of split-run periodicals, an increased excise tax on split-run periodicals, and more favorable postage rates granted to Canadian periodicals but not split-run periodicals. The United States (plaintiff) challenged these measures under the General Agreement on Tariffs and Trade (GATT). The GATT Panel determined that the import ban was prohibited by the GATT, Article XI, and Canada did not appeal. On the excise tax, Canada argued that the split-run periodicals were not like products, which meant that the periodicals could be treated less favorably without violating the GATT national-treatment principle. Canada also argued that the reduced postal rates were permitted as a type of subsidy allowed by the GATT to domestic producers. The GATT Panel ruled against Canada on both of those issues, and Canada appealed to the World Trade Organization (WTO) Appellate Body.
Rule of Law
Holding and Reasoning
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