International marketing: US Cigarette Exporters Association Entry into Thailand

The join States, a large baccy producing country, campaigned to expand queen exports to make up for declining demand in the United States due(p) to increased awareness of health/environmental risks associated with smoking.

In April of 1989, the CEA (US Cigarette Exporters Association) filed an cheating(prenominal) trade practices petition against Thailand under Section 301 of the 1974 Trade Act. The complaint, which was genuine by the United States Trade Representative (USTR), alleged that Thailands state-owned tobacco company (the Thailand Tobacco Monopoly) unfairly restricted imports and trades of extraneous cigarettes. Thai officials maintained that the prohibition of foreign cigarettes was a genuine measure necessary to cling to the health of Thai citizens. bilateral negotiations in 1989 made little progress. This fact, to bumpher with U.S. anti-smoking pressure, caused the USTR to refer the office 301 case to the General Agreement on Tariffs and Trade (GATT).

The GATT encourages control surface markets by limiting the extent to which members direct trade finished instruments of trade control rather than prices. It thus prohibits quantitative barrier and other forms of protection except for customs tariffs. This prohibition includes indispensable taxes and other measures that discriminate against imports, including internal government regulations operating to protect domestic goods, such as bans on the internal sale of imported products.

However, GATT prohibitions on trade restrictions are not utilize without exception.



GATT Article XX recognizes certain protective measures necessary to protect human, animal, or plant life or health, as bulky as these measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where the same conditions prevail, or a disguised restriction on international trade.

During the course of the GATT proceedings, the United States argued inter alia that the Thai restrictions prohibiting cigarette imports were inconsistent to the GATT articles which prohibit...

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