Legal and Strategic Issues - Legality of Solia's GSP Act under WTO - Law Assignment Help

Assignment Task :

International Business Law-Assignment Brief. 

Ensure the legal and strategic issues involved in the case study are identified. Use secondary academic material, cases, articles, and it must be primarily descriptive and illustrative. The analysis of the regulatory questions posed by the case study lacks depth in relation to the findings made in the WTO jurisprudence. More depth needed, this should be demonstrated in the assignment write up that is of a master's level write-up. The analysis of the regulatory questions posed by the case study delves into the findings made by the WTO jurisprudence, but their application in practice is not fully justified in the report. The write assignment must fully justify the application practice. The case study demonstrates a reasonable understanding of the key points but the analytical and evaluative aspects of the submission lack some focus, thus the assignment must cover this in detail. Ensure the assessment demonstrates a satisfactory understanding of the main concepts. The structure of the report be satisfactory and coherent overall. Provide critical insights and solve the problem posed by the case study. The structure of the report must be solid and eases the reader's navigation of the various points. There be a correct identification of the main legal and strategic issues involved in the case study with further discussion of their various implications. The report must shows good use of primary and secondary material, providing also some critical insights for the purposes of the case study. 

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Case study The fate of Drink-it's exports under the new Generalized System of 

Preferences of Solia 

You are the members of the in-house legal team of Drink-it Ltd., a very successful medium sized company producing organic soft drinks with 70% of your sales dedicated to exports. The company is based in Lalaland, a state currently listed as a Least Developed Country (LDC) both by the World Bank and UNCTAD. Despite its LDC status, Lalaland's economy is growing fast and, according to economic forecasts by the World Bank and the International Monetary Fund, it is expected to exit the cohort of LDCs soon and join the one of developing countries with middle-income economies. 

The Republic of Solia, a Western' developed country which absorbs 60% of your company's exports, has recently modified via national legislation its Generalized System of Preferences (GSP): from January 2018 the GSP import tariffs for all soft drink products will increase from 5% to 7% ad valorem, while for listed LDCs (currently including Lalaland) the special tariff regime will keep customs flat at 0%. 

However, a recently adopted national 'GSP Ac? in Solia also contains a special “climate change action waiver', providing that: "any GSP-eligible country, which adopts and implements climate change policies aimed at reducing at least 30% of national greenhouse gasses emissions by 2030, will enjoy duty-free imports on listed products, regardless of its economic status". Among the listed products in the GSP Act appear all soft drinks products. 

For Solia's organic soft drinks market, LeDrinks Ltd. is your main competitor. LeDrinks is also an organic soft drink producer based in Dodoland. Unlike Lalaland, however, Dodoland is an environmentally friendly developing country. In the aftermath of the 2015 UN Paris Agreement on climate change, its Parliament has recently adopted a new 'National Climate Change Act', containing specific carbon emission reduction targets throughout the whole economy which are even more ambitious than those required under the Solia's 'climate change action waiver' of its 'GSP Act. 

Until recently, the LDC status of Lalaland has clearly boosted the competitiveness of Drink it's products in Solia's textiles market, especially against LeDrinks's products. Yet the recent regulatory developments seem to reflect a complex scenario. 

You are expected to circulate a legal briefing (3.000 words limit) at the next Drink-it's Board of Directors about: 

1- An overview of the relevant WTO regulatory context in this case; a detailed description of the likely impacts on Drink-it's business stemming from regulatory changes;  

2- the legality of Solia's GSP Act under WTO Law, according to a detailed analysis of the relevant WTO case law; and 

3- a clarification as to whether Drink-it can directly or indirectly initiate a dispute under the WTO.  

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