Christophe Charlier

Hormones, Risk Management, Precaution and Protectionism An Analysis of the Dispute on Hormone-Treated Beef between the European Union and the United States

The first commercial dispute settled by the WTO under the Sanitary and Phytosanitary Agreement concerned the disagreement between the European Communities and the United States over the European import ban on meat and meat products derived from cattle to which hormones have been administered for growth promotion purposes. The purpose of this paper is twofold: First, we analyse the WTOs approach to the notion of risk in the use of hormones and the role this played in reaching its decision to declare the EC ban on hormone-treated beef imports inconsistent with its obligations under the Sanitary and Phytosanitary Agreement. Second, we discuss the way in which the precautionary principle has been dealt with in the settlement of this conflict. We then show how this dispute has paved the way to a debate on the concept of protectionism to be applied in this kind of dispute. The European Commission in a recent communication on the precautionary principle has launched this debate.

Antidumping and Feed-In Tariffs as Good Buddies? Modeling the EU-China Solar Panel Dispute

The paper analyzes the interactions between trade and renewable energy policies based on the EU-China solar panel dispute which is the most significant antidumping (AD) complaint in Europe. We build a price competition duopoly model with differentiated products and intra-industry trade in photovoltaic (PV) equipment. We show that an optimal antidumping duty always increases with the feed-in tariff (FIT) program set in the home country. An appropriate antidumping duty - nullifying the dumping margin - decreases with the FIT program. We show that optimal FIT increases with the AD duty. Therefore, trade and renewable energy optimal policies may complement one another. Lastly, we introduce R&D activities in the PV sector, and international spillovers. We show that R&D makes the optimal FIT lower and increases the dumping margin. These effects are reinforced by technological spillovers.