Case Discussion and Internet Exploration Questions

Closing Case Shrimps, Turtles, and the WTO

Website — http://www.worldwildlife.org

Case Discussion Questions

Do you think the United States is correct to try to use its law and trade policy to force other countries to adopt environmental policies that it perceives to be sound?
Does the WTO decision have implications for US national sovereignty? If so, what?
Do you think that it is correct for the WTO to decouple trade policy from environmental policy? Why?
Do you think that other countries are correct to accuse the United States of hypocrisy on the environmental issue?
How should the United States react to the WTO decision in this case?

Internet Exploration Question

Sea turtles are prone to get trapped in the nets of shrimp boats, which lead to the deaths of the turtles. As a result, in 1989 the U.S. Congress passed a law that required shrimp boats to be equipped with a simple device that prevents the turtles from being trapped. In an effort to force other nations to follow suite, in 1996 the U.S. placed an embargo on the importation of shrimp from countries that failed to mandate the use of the turtle protection devices. Three countries were targeted by the 1996 ban, including India, Pakistan, and Malaysia.

In reaction to the ban on the importation of its shrimp to the U.S., the three countries mentioned above, along with Thailand, filed a complaint with the World Trade Organization (WTO). To arbitrate the dispute, the WTO formed an independent panel composed of three experts from countries not involved in the affair. The panel was charged with reviewing the U.S. position to see whether it conflicted with WTO rules.

The U.S. basically argued that the sea turtles were a natural resource and should be protected. In response, the complainants argued that the U.S. ban represented an unfair restraint on trade and was illegal under WTO rules. On April 6, 1998, the WTO ruled against the U.S. position. The WTO stated that while environmental considerations were important, the primary aim of international agreements on trade remained the promotion of economic development through unfettered free trade. Although the WTO has no power to overturn U.S. law, under its ruling the United States must pay a penalty to the WTO if it keeps its law and the import ban in place.

The WTO plays an interesting role in international trade, which is still evolving. Visit the WTO's website at {http://www.wto.org/}. Spend some time navigating the website and then answer the following questions. First, what is the major function of the WTO as describe by the information contained in the website? Second, in general, how does the WTO settle disputes? Finally, write a brief review of two items found in the "What's New" section of the website.

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