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Canada—Import Restrictions on Ice Cream and Yogurt
General Agreement on Tariffs and Trade Panel
GATT B.I.S.D. (36th Supp.) 68 (Dec. 4, 1989)
Canada (defendant) had imposed limitations on the domestic production of raw milk since 1976. Canada also imposed certain import restrictions on raw milk as well. Later, Canada adopted import restrictions on ice cream and yogurt. The United States (plaintiff) challenged these import restrictions and argued that they were prohibited quotas. Canada agreed that they were quotas, but Canada argued that the restrictions were justified as an exception. Under Article XI:2 of the General Agreement on Tariffs and Trade (GATT), limiting the quality of certain imports as a quota is generally prohibited. Import restrictions should be in the form of tariffs instead. However, under Article XI:2(c)(i) of the GATT, there is an exception for quotas and import restrictions that apply to similar products that have a domestic agricultural restriction imposed on them. Canada argued that this exception applied.
Rule of Law
Holding and Reasoning
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