Premium Essay

Japan – Taxes on Alcoholic Beverages, 1998

In: Business and Management

Submitted By thereseabennett
Words 398
Pages 2
Case: Japan – Taxes on Alcoholic Beverages, 1998

Facts: Japan has imposed a higher tax on imported vodka than that of the local manufactured shochu, an alcoholic beverage. The US, Canada, and the EU view this as a violation of GATT Article III, paragraph 2, which states imported products should be taxed the same as similar domestic products. Japan and the US want this to be interpreted according to an “aim-and-effect” test. Japan also does not believe vodka is a similar product to shochu and the tax on the alcoholic beverages did not violate Art. III:2 because its the tax/price ratio was neutral.

Procedure: World Trade Organization, Dispute Settlement Panel

Issue: 1- Can the aim-and-effect test be applied to this situation? 2- Are vodka and shochu similar products? 3- Will a neutral tax/price ratio be sufficient enough to meet the Art. III:2 requirements?

Holding: (1- No, 2- Yes, 3- No) Japan has to bring their taxes on alcoholic beverages into compliance with Art. III:2.

Reasoning: (Lacarte-Muro, Bacchus, and El-Nagga)
A. Rule: Art. III:2 has a requirement for all WTO members which states that all states should enforce the same internal taxes on products as they do on similar domestic products. Similar products have to follow the principles of paragraph 1. Art III:1, which states taxes cannot be enforced to protect a domestic production. Similar products are determined one case-by-case basis with familiar end-users and the same physical characteristics.

B. Application: 1- Using the “aim-and effect” test would be too difficult to apply and to determine the real aims of limited legislation, which is based on the goals set out in Art. III:1. 2- Vodka and shochu will be bought and used by the same consumers and the filtration is different, however they have identical physical characteristics, therefore should be treated as similar products. 3- A...

Similar Documents

Premium Essay

Legal Aspect of Decision Making

...Saint Vincent and the Grenadines v. Guinea International Tribunal for the Law of the Sea Case No. 2, 1999, posted at www.itlos.org. Facts October 1997, the M/V Saiga, an oil tanker, was engaged in selling “gas oil” to fishing and other vessels within Guinea’s exclusive economic zone. The next day, the Guinean Navy boarded the Saiga just beyond Guinea’s exclusive economic zone and the master, crew, and the ship were arrested. The government of Guinea charged the master with importing “without declaring it, merchandise that is taxable on entering national Guinean territory, in this case diesel oil” and brought criminal proceedings against him for “committing the crimes of contraband, fraud, and tax evasion.” Procedural History November 1997, the SVG submitted a request to the International Tribunal for the Law of the Sea (ITLOS) for an order that would direct Guinea to release the Saiga and its crew. ITLOS issued an order on December 4 calling for Guinea to release the vessel and its crew upon the posting by SVG of a U.S. $400,000 letter of credit. Issue Was the Guinea failure to recognize the nationality of the Saiga and a violation of its rights of navigation justifiable on the ground that there was no genuine link between the ship and Saint Vincent and the Grenadines. Holding and Judgment The Tribunal concluded that there is no legal basis for the claim of the Guinea that it can refuse to recognize the right of the Saiga to fly the flag of Saint Vincent and......

Words: 2720 - Pages: 11

Premium Essay

International Trade

...1981 Saudi Arabia's trade surplus doubled, reaching a peak of US$82.5 billion. Trade (expressed in billions of US$): Saudi Arabia Exports Imports 1975 29.682 4.213 1980 109.083 30.166 1985 27.481 23.622 1990 44.417 24.069 1995 50.040 28.091 1998 N/A N/A SOURCE: International Monetary Fund. International Financial Statistics Yearbook 1999. The surplus declined steadily throughout the 1980s as export volume diminished and oil prices fell. By 1985, the balance of trade had fallen to just US$7 billion. In 1990, Iraq invaded Kuwait, prompting the United Nations to place an embargo on Iraqi oil. The cut in supply sent prices back up, and as Saudi Arabia heightened production to meet world demand (from 5.1 million b/d in 1989 to 8.2 million b/d in 1991), export revenues increased and the trade surplus rose once again. In 1996, export revenues exceeded import expenditures by US$35.3 billion. In 1998, the world economy slowed. At the same time, oil production by both OPEC and non-OPEC members increased. The higher production levels coupled with lowered demand caused the price of oil to fall by almost US$7/barrel, from US$19.12/barrel in 1997 to US$12.76/barrel in 1998. In Saudi Arabia, oil receipts fell and the trade surplus dropped to US$11.2 billion. In 1999, oil producers worldwide lowered production, and the...

Words: 1812 - Pages: 8

Premium Essay

Starbuck Corporation

...period whereas the financial year ended September 27, 2009 was a 52-week period. Key Facts: 2401 Utah Avenue South, Seattle, Washington 98134, USA T: 1 206 447 1575 www.starbucks.com * NASDAQ National Market Ticker: SBUX * No. of Employees: 137,000 * Turnover (US$ Mn): 10,707.4 * Financial Year End: September Mission: To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Vision: We are committed to doing business responsibly and conducting ourselves in ways that earn the trust and respect of our customers, partners and neighbors. Business description: Starbucks Corporation specializes in coffee and other related beverages. The company sells coffee, Italian-style espresso beverages, cold blended beverages and complementary food items, a selection of premium teas, and coffee-related accessories and equipment. Some of the key brands under which the company offers its products include Starbucks, Tazo Tea, Seattle's Best Coffee and Starbucks VIA Ready Brew. At the...

Words: 4089 - Pages: 17

Premium Essay

Coca Cola's Marketing Strategies

...TERM PROJECT MARKETING STRATEGY 1 Marketing Strategies Of Coca Cola PRESENETED TO: MR. SUFIAN AHMAD PRESENTED BY: Sami Ullah Khan 27s-640 2 TABLE OF CONTENTS CONTENTS 1. 2. 3. 4. Acknowledgement. Mission statement Introduction. Coca Cola. a. Coca Cola International. b. History. 5. Management. 6. Market share. 7. Financial report. 8. Dividends and Cash Plan. 9. Products. 10. Strategic planning. 11. Bottlers owned by Coca cola 12. Coca Cola Pakistan. 13. Major Competitors a. Pepsi b. History. c. Financial assets. • Market share. • Financial report. • Products. • Methodology 14. Some basic information regarding marketing of coke a. Target market: b. Major segments: c. Factors effecting sales: d. Major competitors: e. Strategies of quality: f. Threats from competitors: g. Targets that would like to attain: h. Expanding target market i. Threats and opportunities for price: j. Strategies of getting goals i.e. “high profits”: k. Marketing strategy: l. Expectations for the coming year: m. How coke determine the yearly budget: 15. Marketing strategies 16. Pest analysis . 3 DEDICATION This report is dedicated to my beloved parents, Who educated me and enabled me to reach at this level. 4 ACKNOWLEDGEMENT We think if any of us honestly reflects on who we are, how we got here, what we think we might do well, and so forth, we discover a debt to others that spans written history. The work of some unknown person makes our lives easier everyday. We......

Words: 9769 - Pages: 40

Premium Essay

Dalat Wine

...Scientific Article DALAT WINE: CHALLENGES IN ESTABLISHING THE NATIONAL WINE BRAND POSITION IS STILL YEARS AHEAD -*Ngo Binh, MA. in Marketing Bui Thi Lan Huong, PhD. I. COMPANY HISTORY 1.1 Wine manufacturing traditional in Dalat (Vietnam) Dalat wine has been popular in Dalat, an attractive city located 1500 m above sea level on Langbian high lands. For long time ago, Dalat wine has been produced traditionally by local producers from blackberries (dau tam). Traditional wine makers in Dalat grow themselves dau tam at Bong Lai area. It is reportedly that the first wine producer was Lafaro, a local company founded by Nguyen Huu Duc in 1974. This company imported a new variety of dau tam to produce its wine. Unfortunately, the company stopped to operate in 1975. Nguyen Chi Man, a 80-year-old man, who did distribute this wine at that time, asked the company's owner this variety of mulberry' seeds to grow, then to make wine for his own consumption and later on for his small business in Dalat. Since then, other traditional wine makers follow him to open wine factories and mulberry plantations, especially in Bong Lai. Because of their small scale, they did not build up particular brand name for their wine. Dalat wine has been considered effectively as a “geographical indication”. Dalat wine has been consumed mostly by Dalat residents. The mind climate of Dalat is the favorable place for consuming red wine, especially in traditional holidays. According to Nguyen Trong Anh Dong,......

Words: 7353 - Pages: 30

Premium Essay

Britvic Case Study

...Breaking Down the Chain: A Guide to the soft drink industry aCknowleDgments this report was developed to provide a detailed understanding of how the soft drink industry works, outlining the steps involved in producing, distributing, and marketing soft drinks and exploring how the industry has responded to recent efforts to impose taxes on sugar-sweetened beverages in particular. the report was prepared by sierra services, inc., in collaboration with the supply Chain Management Center (sCMC) at rutgers university – newark and new Brunswick. the authors wish to thank kristen Condrat for her outstanding support in all phases of preparing this report, including literature review and identifying source documents, writing, data analysis, editing, and final review. special thanks also goes to susanne Viscarra, who provided copyediting services. Christine fry, Carrie spector, kim Arroyo Williamson, and Ayela Mujeeb of ChangeLab solutions prepared the report for publication. ChangeLab solutions would like to thank roberta friedman of the yale rudd Center for food Policy and obesity for expert review. for questions or comments regarding this report, please contact the supervising professors: Jerome D. Williams, PhD Prudential Chair in Business and research director – the Center for urban entrepreneurship & economic development (Cueed), rutgers Business school – newark and new Brunswick, Management and Global Business department 1 Washington Park – room 1040 newark, nJ 07102 Phone:......

Words: 40786 - Pages: 164

Premium Essay

Cola Wars

...over a century, Coca-Cola and Pepsi-Cola vied for “throat share” of the world’s beverage market. The most intense battles of the cola wars were fought over the $60-billion industry in the United States, where the average American consumed 53 gallons of carbonated soft drinks (CSD) per year. In a “carefully waged competitive struggle,” from 1975 to 1995 both Coke and Pepsi achieved average annual growth of around 10% as both U.S. and worldwide CSD consumption consistently rose. According to Roger Enrico, former CEO of Pepsi-Cola: The warfare must be perceived as a continuing battle without blood. Without Coke, Pepsi would have a tough time being an original and lively competitor. The more successful they are, the sharper we have to be. If the Coca-Cola company didn’t exist, we’d pray for someone to invent them. And on the other side of the fence, I’m sure the folks at Coke would say that nothing contributes as much to the present-day success of the Coca-Cola company than . . . Pepsi.1 This cozy relationship was threatened in the late 1990s, however, when U.S. CSD consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi. In response, both firms began to modify their bottling, pricing, and brand strategies. They also looked to emerging international markets to fuel growth and broadened their brand portfolios to include non-carbonated beverages like tea, juice, sports drinks, and bottled water. As the cola wars......

Words: 13837 - Pages: 56

Premium Essay

Economic Freedom and Living Standards

...Economic Freedom and Living Standards April 24, 2008 Research Paper Sweden, Ivory Coast, India, North Korea, Singapore, and Brazil April 24, 2008 Research Paper: Sweden, Ivory Coast, India, North Korea, Singapore, and Brazil A country with a free economy have a higher standard of living than countries with poor economies. The standard of living can be determined by the overall economic standing, policy or reforms, political, social, and cultural conditions that a country displays. These factors can be measured in different ways such as the GDP, population, history, and various sources. In this paper, I will examine the economic structure of six countries and emphasize factors that contribute to the standard of living. Sweden Sweden is the world's 27th freest economy. According to the 2008 Index of Economic Freedom (IEF), it has an economy that is 70.4% free. Services, industry, and agriculture account for 59.8%, 38%, and 2.8% of GDP (World Factbook). It relies heavily on international trade, accounting for more than 50% of GDP. Main exports include paper products, machinery and transport equipment, and chemicals. The population is 9 million with a GDP of about $308.9 billion. Citizens are provided with a broad spectrum of public services and social welfare benefits that guarantee a minimum living standard and all residents are covered by national health insurance (Soldenberg). It is known to have one of the highest living standards in the......

Words: 4356 - Pages: 18

Premium Essay

Cola Wars

...over a century, Coca-Cola and Pepsi-Cola vied for “throat share” of the world’s beverage market. The most intense battles of the cola wars were fought over the $60-billion industry in the United States, where the average American consumed 53 gallons of carbonated soft drinks (CSD) per year. In a “carefully waged competitive struggle,” from 1975 to 1995 both Coke and Pepsi achieved average annual growth of around 10% as both U.S. and worldwide CSD consumption consistently rose. According to Roger Enrico, former CEO of Pepsi-Cola: The warfare must be perceived as a continuing battle without blood. Without Coke, Pepsi would have a tough time being an original and lively competitor. The more successful they are, the sharper we have to be. If the Coca-Cola company didn’t exist, we’d pray for someone to invent them. And on the other side of the fence, I’m sure the folks at Coke would say that nothing contributes as much to the present-day success of the Coca-Cola company than . . . Pepsi.1 This cozy relationship was threatened in the late 1990s, however, when U.S. CSD consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi. In response, both firms began to modify their bottling, pricing, and brand strategies. They also looked to emerging international markets to fuel growth and broadened their brand portfolios to include non-carbonated beverages like tea, juice, sports drinks, and bottled water. As the cola wars......

Words: 14055 - Pages: 57

Premium Essay

Business Law

...STRATEGIC DILEMMAS OF A SMALL MARKET PLAYER: THE CANADIAN WINE INDUSTRY Judith J. Madill Eric Sprott School of Business, Carleton University 1125 Colonel By Drive, Ottawa, ON, Canada, K1S 5B6 +1 (613) 520-2600 Ext. 8014 Fax: +1 (613) 520-4427 e-mail: Judith_Madill@carleton.ca Allan L. Riding Eric Sprott School of Business, Carleton University 1125 Colonel By Drive, Ottawa, ON, Canada, K1S 5B6 +1 (613) 520-2394 Fax: +1 (613) 520-2363 e-mail: al_riding@carleton.ca George H. Haines, Jr. Eric Sprott School of Business, Carleton University 1125 Colonel By Drive, Ottawa, ON, Canada, K1S 5B6 +1 (613) 520-2600 Ext. 7487 Fax: +1 (613) 520-4427 e-mail: george_haines@carleton.ca Abstract This paper undertakes an analysis of the strategic situation of the Canadian wine industry. A very small player by world standards, Canadian wineries face intense and intensifying competition within the domestic market. The demand side of this market is dominated by a small number of large provincial monopoly retailers. The supply side comprises five substantial firms that account for ninety percent of total wine production and a large number of very small wineries. The Canadian competitive environment is characterized by strong historical reputations of (and consumer preferences for) Old World wines, economies of scale and technology associated with New World wines, (at best) stable per capita wine consumption patterns, rapid increases in both the number of domestic wineries and land under......

Words: 9606 - Pages: 39

Free Essay

Market Entry Strategies

...ACKNOWLEDGEMENT In the name of Allah the Most Gracious and the Most Merciful. Alhamdulillah, all praises to Allah for the strengths and His blessing completing this group project for this subject IBM530/535 (International Business) Firstly, we would like to express our deepest thanks to our dedicated lecturer, Miss Riza Emifazura Bt Jaafar who had guided us a lot during this semesters session March-July 2013. Her invaluable help of guidelines support and suggestion in order to finish up our project. Not forgotten deepest thanks and appreciation to staff from Adabi Consumer Industries Sdn Bhd, Madam Azatul Izan Bt Mohamed Nordin as a product manager for giving us details information about Adabi’s product in local market and international market. We also thanks to all of group member that have been contributed by supporting this work and give fully cooperation, commitment and help during this project progress till it is fully completed Last but not least, thanks to our parents, family and friend for their constructive suggestion, idea and full of support for the report completion from the beginning till the end. Thank you. PART 1: MARKET ANALYSIS i. General Information The country that our company chooses is Indonesia. The name Indonesia has its roots in two Greek words: "Indos" meaning Indian and "Nesos" which means islands. It is an appropriate description of the archipelago as there are estimated to be a total of 17,508 islands, of which only about......

Words: 15994 - Pages: 64

Premium Essay

Eurozone - Course Paper

...[pic] Professional Higher Education Bachelor's Programme “European Business Studies” Course Paper in Economics TITLE Author: _______________ Group D1AX Supervisor:_______________ Riga, Month 2013 TABLE OF CONTENTS 1. Introduction 3 2. Literature survey 4 2.1 The nature of inflation 4 2.2 Methods of measuring inflation 6 2.3 Reasons and consequences of inflation 9 3. Practical rationale for analysing price dynamics in Latvia 13 3.1 Research into the causes of price changes in Latvia 14 3.2 Overall analysis of price dynamics in Latvia 18 3.3 Examination of price dynamics in relation to particular group of products in Latvia 22 4. Conclusions 25 5. Recommendations 26 6. Bibliography 27 7. Appendices 28 LIST OF TABLES, FIGURES AND FORMULAS Formulas Formula 2.1: GDP deflator 7 Formula 2.2: Inflation Rate Equations Formulas Calculator 7 Tables Table 3.1: Compliance with Maastricht criteria 12 Table 3.2: Government deficit 14 Figures Figure 3.2: Nominal and real household consumption 15 Figure 3.3: Household savings 16 Figure 3.4: Inflation in Latvia 1991 - 2012 17 Figure 3.5: Harmonized consumer price index of the EU Member States 18 Figure 3.6: Private consumption and consumer price index 19 Figure 3.7: Changes of producer prices 20 Figure 3.8: Consumer prices, producer prices and deflator's......

Words: 8654 - Pages: 35

Free Essay

Tobacco Industry

...1600’s the use of Tobacco reached much of Europe, Asia, Africa and North America.   Although paper cigarettes were developed around the same time as cigars, the first push for factory production came in 1881 with the issuance of a patent for a cigarette rolling machine that could produce 120,000 units daily.  By 1944, there were roughly 300 billion cigarettes produced annually.[i] However, the industry would take a turn in 1964 when the Surgeon General of the United States reported the dangers and health risks of cigarette smoking.  The tobacco industry has been combating consumer health awareness, governmental restrictions and taxes, and anti-smoking lobbying despite increased profitability ever since its introduction to the global market. Estimates place the current industry revenue at $465BN and gross profit at $280.3BN for 2010.  After taxes the estimated net profit will account for approximately 8.5% of the total industry revenue for this year. The industry employs 604.9 thousand with total wages approximating $11,807.8MM. Over the last 5 years, growth has dominated and 2010 marks continued success. Worldwide industry revenue, gross product and trading (exports and imports) are up 2.5%, 1.9% and 1.6% from 2009, respectively. However, some stagnation has occurred with the number of firms,...

Words: 14792 - Pages: 60

Premium Essay

Corporate Strategy

...DIRECTION DE L'ENSEIGNEMENT RESSOURCES PEDAGOGIQUES 79-81 avenue de la République 75543 PARIS Cedex 11 Tél: 01 49 23 57 24 Fax : 01 49 23 57 41 E-mail : ccmp@ccip.fr Internet : www.ccmp.fr NESTLE - DANONE and the bottled water sector G1329(GB) Par Franck BRULHART & Tim WHITE Faculté des Sciences Economiques et de Gestion Marseille - EUROMED Université Aix-Marseille II Intégration CCMP : 2004 Licence d'utilisation accordée à : _Euromed Marseille Ecole de Management Pour ce produit, l'établissement acquéreur est autorisé à : • Diffuser le produit à l'ensemble du corps professoral de l'établissement dans le but d’utiliser ce produit pédagogique pour son enseignement. • Reproduire le produit sans limitation de quantité, ni de durée. S'il s'agit d'un document au format numérique, celui-ci peut être diffusé par tout moyen et support (intranets et extranets dûment autorisés par l'établissement acquéreur) à l'exclusion de sites web librement accessibles au public extérieur à l'établissement acquéreur L’établissement acquéreur du produit s'engage à : • ne pas communiquer ou céder tout ou partie du produit à un tiers n'enseignant pas dans l'établissement acquéreur • conserver une version originale intégrale et datée du produit telle qu'elle a été livrée par la CCMP lors de l'achat, • conserver le logo de la CCMP et le logo de l'établissement créateur ainsi que les logos ou marques des entreprises citées dans le produit, Cette étude de cas est un...

Words: 7695 - Pages: 31

Free Essay

Japan Trade Laws

...Country Commerce Japan Released September 2011 The Economist Intelligence Unit 750 Third Avenue New York NY 10017 USA Economist Intelligence Unit The Economist Intelligence Unit is a specialist publisher serving companies establishing and managing operations across national borders. For 60 years it has been a source of information on business developments, economic and political trends, government regulations and corporate practice worldwide. The Economist Intelligence Unit delivers its information in four ways: through its digital portfolio, where the latest analysis is updated daily; through printed subscription products ranging from newsletters to annual reference works; through research reports; and by organising seminars and presentations. The firm is a member of The Economist Group. London Economist Intelligence Unit 26 Red Lion Square London WC1R 4HQ United Kingdom Tel: (44.20) 7576 8000 Fax: (44.20) 7576 8500 E-mail: london@eiu.com Hong Kong Economist Intelligence Unit 60/F, Central Plaza 18 Harbour Road Wanchai Hong Kong Tel: (852) 2585 3888 Fax: (852) 2802 7638 E-mail: hongkong@eiu.com New York Economist Intelligence Unit The Economist Group 750 Third Avenue 5th Floor New York, NY 10017, US Tel: (1.212) 554 0600 Fax: (1.212) 586 0248 E-mail: newyork@eiu.com Geneva Economist Intelligence Unit Boulevard des Tranchées 16 1206 Geneva Switzerland Tel: (41) 22 566 2470 Fax: (41) 22 346 93 47 E-mail: geneva@eiu.com This report can be accessed electronically as...

Words: 52449 - Pages: 210