TEAM CODE-01

AMITY UNIVERSITY INTERNATIONAL MOOT COURT COMPETEITION, 2017

IN THE DISPUTE SETTELMENT BODYOF WTO

THE CASE CONCERNING THE GATT TRADE PRINCIPLES

STATE OF LOCASIA(APPELANT)

V.

STATE OF GRANDIANA..........................................(RESPONDENT)

MEMORIAL OF APPEALANT
 TABLE OF CONTENTS

TABLE OF CONTENTS .............................................................................................................................. 2

LIST OF ABBREVIATIONS ....................................................................................................................... 3

INDEX OF AUTHORITIES......................................................................................................................... 4

STATEMENT OF FACTS ........................................................................................................................... 6

ISSUES RAISED ........................................................................................................................................ 10

ISSUE-1:- WAS THE REVOCATION OF TREATY BY STATE OF LOCASIA LEGAL ............. 11

Environment depletion:- ............................................................................................................................. 11

Meaning of the word endangered species ................................................................................................ 15

A safeguard from Incresing haegmony:- ............................................................................................ 18

ISSUE 2:- THE REVOCATION OF MFN STATUS IS A LEGAL ACT OR MERELY A POLITICAL
MOVE:- ...................................................................................................................................................... 22

Waiver of MFN status:- .................................................................................................................... 29

Heavy subsidies to the local exporters:- ..................................................................................................... 33

A violation of Free trade rule:- ................................................................................................................... 35

Compensation &damages:- ....................................................................................................... 36

PRAYER ................................................................................................................................... 37
 LIST OF ABBREVIATIONS

Art. :- ARTICLE

WTO :- WORLD TRADE ORGANISATION

GATT :- GENERAL AGREEMENTON TRADE AND TARIFF

MFN : -- MOST FAVOURED NATION

VCLT :- VIENNA CONVENTION ON LAW OF TREATIES

DSU :- DISPUTE SETTELMENT UNDERSTANDING

DSB :- DISPUTE SETTELMENT BOD

 INDEX OF AUTHORITIES

Conferences:-

1) United nation conference on environment and development11-13

2) Johanusberg summit on sutainable development.14

3) The Convention on International Trade in Endangered Species of Wild Fauna and

Flora..14

4) The wildlife research on gravys zebra text African wildlife

protection15

5) The World Economic Conference: Final Report 34, League of Nations Doc.
C.356.M.129.1927.II (C.E.I.46) (1927). ..22

Cases and researches:-

1) Text in dj herris ..14

2) State of Nicaragua v. united states case..20

3) Article xx general exception gatt laws.16

4) Appellate Body Report, Canada Certain Measures Affecting the Automotive Industry, 84,
WT/DS139/AB/R, WT/DS142/AB/R (May 31, 2000) [hereinafter Canada-Autos Appellate
BodyReport].23
 STATEMENT OF JURISDICTION

The two states namely the State of Locasia (Appealant) & State of Grandiana (Respondent) have
submitted there arguments in the Dispute settlement body of the World Trade Organisation. Both
the parties are full members of the UN and are also full members of WTO and hence are very
much bound by the decision of the dispute settlement body. Both the states are requesting to the
dispute settlement body to setup the penal under article vi of DSU in order to sort out the case on
the basis of penal report.
 STATEMENT OF FACTS

BACKGROUND:-

The moot problem deals with the dispute between two state namely State of
Grandiana & State of Locasia.
Both the countries are the members of WTO- GATT framework. Moreover they both
adhere to the laws and policies of WTO and are bound by the general laws and obligation
of the dispute settlement mechanism of WTO.

STATE OF GRANDIANA:-
Grandiana is developed country located in the continent of Alasia, which is the largest
continent of the world with a population of around 10 million people. It is second most
developed countries in the world.
It has achieved a global economic might in a short span of around 100 years since
independence.
It is a state full of industrial prosperity which is the main reason for the development of
the country; however is deficit in the natural resources because of the existing semi arid
geographical condition.
Grandiana is the major exporters of finished goods to many of the lesser developed
countries.
It is one of the founding members of WTO-GATT framework which is generally
committed to the ideas of free economic trade. The country has a general reputation of
helping the lesser developed countries in growth and development.
But the critics state that the main aim of the state is to maintain hegemony in the
countries across the world.
 STATE OF LOCASIA:-
Locasia is the least developed country situated in the continent of Eurosia which is
famous for its environmental heritage, ecological richness and biodiversity.
Locasia got independence around 20 years back and presently has around 1 billion
population.
The country is sound in ecological richness and has a huge deposit of basic raw material
and resources.
The country is stricken with abject poverty and long famines. Moreover there are a lot of
issues of inhuman treatment of laborers and abuses of the human rights across the
country; moreover due to this the country is not able to gain industrial soundness.
The country became the member of GATT- WTO framework five years ago. Five years
ago it opposed the idea of WTO because number of free trade obligation being onerous
on LDC.
But slowly and gradually it embraced the framework. Locasia and Grandiana has good
relation with one another.

TURN OF EVENTS:-
In march 2016, Dr. Jabio PM of Grandiana went on to official visit to locasia for
economical cooperation between the two countries.
They together signed an agreement, to develop a sea trading port in coastal region of
Nacaria situated in the western coast of Locasia.
On one hand this trading port will give an easy access to grandiana in the continent of
Eurosia, on the other hand it also generate revenue for the development of country. It was
agreed that the profit ratio must be 70:30. For the grandiana and Locasia respectively.
PM of grandiana has agreed to invest USD 100 million. For the establishment of the same
and provide the technical support too.
 Dr. Jabio said Both of the countries have faced similar problems in the past. Our
common heritage and are common ideals require that we must unite together for the
greater future. This trading port will be a symbol of our friendship and it will help us to
collaborate in the economic development of our countries. This trading port marks a
new start to our old friendship
In October 2016 grandiana transferred USD 20 million to locasia for the establishment of
the said port. Consequently the work started on full scale along with technical support of
grandiana.

GENISIS OF DISPUTE
In February 2017 the government of Locasia changed and now the CP party is in power
replacing the LJP party. They being the opposite party do not agree with the easternwhile
policy of LJP party and is called LJP as a capitalist stooge of grandiana.
The president Mr. Gnai (president) said:- The old government of Mr. Han, LJP Party
has plundered the wealth and the natural resources of our country. We cannot allow
this any further. We cancel the proposal of the trading port in alliance with Grandiana.
This project does not serve our national interests.
The agreement done by LJP party with state of Locasia was irrevocably revoked on 10
march 2017 because of the act that the region is rich in biodiversity and an endangered
species of zebra namely the Gravys zebra which is only found in this region across the
globe.
Hence it was feared that the industrialization of region would erode the environmental
worth of the region. The spokesperson of the party cited the Rio declaration 1992 in
support of the government viewpoint.
Moreover the Environment impact assessment report dated 1st January 2017 also
proposed the view that the trading port will completely erode the environmental richness
and will also make harm to the endangered species of zebra.
The state of grandiana opposed the revocation of the treaty contract. As a reaction to
these development the official spokesperson of state of grandiana said:- The revocation
of the treaty contract by the new government of Locasia is plainly against the rules of
 the international laws and the same is a lame attempt to wriggle out of its existing
obligations at the international level. We will pursue to matter at the appropriate level.
This illegal act of the State of Locasia will not be allowed to go unnoticed.

In may 2017 grandiana banned the import of consumer goods from the countries where
goods were made in violation of Human rights and labor rights moreover by illegal
animal hunting too.
This lead to reduction in export from Locasia to grandiana by 60% which in turn lead to a
loss of (app) USD 40 million per anum.
The spokesperson of Locasia reacted to this that these bans are nothing but a faade just
to take revenge of the cancellation of the said port building contract.
Also around the same time the state of grandiana gave monetary subsidy to its local
exporters of consumer goods provided that they meet the international slandered of
manufacturing and distribution.
These measures was strongly objected by local manufacturers of state of Locasia. Hence
the state of Locasia put a contravelling duty on the import of goods from grandiana in
order to safeguard the interest of local manufacturers and to avoid the alleged dumping.
The spokesperson of grandiana defended the trade measures by saying that these
measures are not directed towards any specific country but is done only to protect the
human rights and to promote better trade.

CURRENT STATUS
Due to the above state of circumstances, the state of Locasia has now revoked the MFN
status of state of grandiana. It has approached the WTO dispute settlement mechanism for
the resolution of existing trade dispute between the two countries.
On the other hand state of grandiana challenges the said illegal revocation of MFN status
and it also seeks monetary compensation and exemplary damages for the illegal acts of
the state of locasia.
 ISSUES RAISED

ISSUE-1:- WAS THE REVOCATION OF TREATY BY STATE OF LOCASIA

LEGAL

Environment depletion
A safeguard from increasing heagmony

ISSUE:-2 WAS THE REVOCATION OF MFN STATUS A LEGAL ACT OR A

POLITICAL MOVE

Legal status of mfn status:-

A violation of Free trade rule
 ISSUE-1:- WAS THE REVOCATION OF TREATY BY STATE OF LOCASIA
LEGAL

Your lordship the act of locasia was completely justifiable and not merely a political move this
can be proved under the following heads:-

Environment depletion:-
Your lordship environment and sustainable development of the natural resources is very
important aspect, not only for the present generation but for future generation too. There are
many agreements which are done at the world level for the safety security and sustainess of the
environment in order to protect it from the very depletion which can cause a heavy damage to the
life of the people. Some of the are as follows:-

The Rio declearation:-1

Declearation met at Rio de Janeiro from 3 to 14 June 1992,Reaffirming the Declaration of the
United Nations Conference on the Human Environment,adopted at Stockholm on 16 June 1972,
and seeking to build upon it,With the goal of establishing a new and equitable global partnership
through the creation ofnew levels of co-operation among States, key sectors of societies and
people,Working towards international agreements which respect the interests of all and protect
theintegrity of the global environmental and developmental system,Recognizing the integral and
interdependent nature of the Earth, our home Provided some of the important principle which are
as follows:-

Human beings are at the centre of concerns for sustainable development. They are
entitled to a healthy and productive life in harmony with nature.2

1
The United Nations Conference on Environment and Development
2
PRINCIPLE 1 United Nations Conference on Environment and Development
 States have, in accordance with the Charter of the United Nations and the principles of
internationallaw, the sovereign right to exploit their own resources pursuant to their
ownenvironmental anddevelopmental policies, and the responsibility to ensure that
activities within their jurisdiction or controldo not cause damage to the environment of
other States or of areas beyond the limits of nationaljurisdiction.3

The right to development must be fulfilled so as to equitably meet developmental and

environmental needs of present and future generations.4

In order to achieve sustainable development, environmental protection shall constitute an

integral part of the development process and cannot be considered in isolation from it.5

To achieve sustainable development and a higher quality of life for all people, States
shouldreduce and eliminate unsustainable patterns of production and consumption and
promote appropriatedemographic policies.6

States shall enact effective environmental legislation. Environmental standards,

management
objectives and priorities should reflect the environmental and developmental context to
which they apply. Standards applied by some countries may be inappropriate and of
unwarranted economic andsocial cost to other countries, in particular developing
countries.7

3
PRINCIPLE 2 United Nations Conference on Environment and Development
4
PRINCIPLE 3 United Nations Conference on Environment and Development
5
PRINCIPLE 4 United Nations Conference on Environment and Development
6
PRINCIPLE 8 United Nations Conference on Environment and Development
7
PRINCIPLE 11 United Nations Conference on Environment and Development
 In order to protect the environment, the precautionary approach shall be widely applied
byStates according to their capabilities. Where there are threats of serious or irreversible
damage, lackof full scientific certainty shall not be used as a reason for postponing cost-
effective measures toprevent environmental degradation.8

These principles clealy show that state is bound by a duty to provide or to do or promote the
sustainable development of environment and natural resources. Moreover is an important aapect
always needed to be pondered upon. This can be said by :-

Peace, development and environmental protection are interdependent and indivisible.9

Here in our case It is true that the state of locasia is full of the natural resources but according to
the Environment Impact Assessment Report dated 1-1-2017. the proposed trading port will
completely erode the environment of the Nacaria region of Locasia. It will also lead to the
extinction of the Grevys Zebra existing in this region.
This assessment report is an important one and a state should consider it while taking decision in
respect of environment protection and sustainability. This can be said with the help of:-

Environmental impact assessment, as a national instrument, shall be undertaken for

proposedactivities that are likely to have a significant adverse impact on the environment
and are subject to adecision of a competent national authority.10

Further it is quite clear that the world is completely focused towards the sustainable
development principle. Even it can be said that it is very power ad duty of a state to protect
its resources so for the sustaineness of the same and the development too. As it is been
committed in the different conference for example the most recent johanusburg conference
which gives some objectives related to the same:-

8
PRINCIPLE 15 United Nations Conference on Environment and Development
9
PRINCIPLE 25 United Nations Conference on Environment and Development
10
PRINCIPLE 17 United Nations Conference on Environment and Development
 We are determined to ensure that our rich diversity, which is our collective strength, will
be used for constructive partnership for change and for the achievement of the common
goal of sustainable development.11

Under the principles of international law, no State has the right to use or permit the use of its
territory in such a manner as to cause injury by fumes in or to the territory of another or the
properties or persons therein, when the case is of serious consequence and the injury is
established by clear and convincing evidence.12

Hence here the decision taken on the basis of the said report was completely authorised and
these principles are abrupt witness of the keen eye of government on environment parlence
which is an important aspect to be witnessed about.
Further, CITES is an international agreement between governments. Its aim is to ensure that
international trade in specimens of wild animals and plants does not threaten their survival.13

This convention in its very principle talks about the very intention of protection of flora and
fauna. Actually it is true that for the development of the nation not only the protection of
environment but the protection of flora and fauna is also important. The UDAW also shows and
consider the objective of protection of animals.
In our present case The said Spokesperson a stated that the endangered species of Zebra namely
the Grevys Zebra was found in that region. The Grevys Zebra is already facing the threat of
extinction due to issues of loss of habitat and the changing environment scenarios. Grevys Zebra
is also listed as an endangered species in the list floated by the International Union for
Conservation of Nature and Natural Resources (IUCN). This category of Zebra is not found
anywhere on the globe.

11
JOHANUSBERG SUMMIT ON SUSTAINABLE DEVELOPMENT
12
Text as in Harris (1991: pp.245,224.
13
The Convention on International Trade in Endangered Species of Wild Fauna and Flora
Meaning of the word endangered species
An endangered species is a group (population) of animals, plants or other organisms that is in
danger of becoming extinct. This could happen because there are few of that animal left,
its predators have grown in number, or the climate that it lives in is changing, or the places it
lives in have been destroyed.

About gravys zebra:-

The facts of the case talks about the gravys zebra. The Grvy's zebra (Equus grevyi),
also known as the imperial zebra, is the largest extant wild equid and the largest and
most threatened of the three species of zebra, the other two being the plains zebra and
the mountain zebra. Named after Jules Grvy, it is the sole extant member of the
subgenus Dolichohippus. The Grvy's zebra is found in Kenya and Ethiopia. Compared
with other zebras, it is tall, has large ears, and its stripes are narrower.
The Grvy's zebra is considered endangered. Its population was estimated to be 15,000 in
the 1970s and by the early 21st century the population was lower than 3,500, a 75%
decline. It is estimated that there are less than 2,500 Grvy's zebras still living in the
wild. There are also an estimated 600 Grvy's zebras in captivity.14

Thus the very steps taken by the government in order to protect the endangered species namely
gravy zebra which thwe reports of IUCN shows that are endangered is completely correct. This
can be justified on the provision given under the GATT laws:-
General exceptions:-
Subject to the requirement that such 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, nothing in this Agreement
shall be construed to prevent the adoption or enforcement by any contracting party of measures:

14
The wildlife research on gravys zebra text African wildlife protection
(b) necessary to protect human, animal or plant life or health15

During the Geneva session of the Preparatory Committee, in discussions concerning paragraph
(b) and its relationship to the preamble of this article, it was agreed to delete the phrase (which
had appeared in the New York draft of paragraph (b)) if corresponding domestic safeguards
under similar conditions exist in the importing country. The reasons for the proposed deletion
were that this would be difficult to implement, and as for the protection needed for exporting
countries, to see that this is not abused that is afforded one by the headnote to the Article
.16 It was stated at that time that in view of the misuses which have been made in the past of
sanitary regulations, and of damages caused in this way to exporting countries, it would be
regrettable if we were to renounce any clarification of the provisions of sub-paragraph (b).
However, the discussion which was raised here shows clearly that this Committee is against any
possibility of this provision being used as a measure of protection in disguise.

The Committee agreed that quarantine and other sanitary regulations are a subject to which the
Organization should give careful attention with a view to preventing measures necessary to
protect human, animal or plant life or health from being applied in a manner which would
constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on
international trade and to advising Members how they can maintain such measures without
causing such prejudices16
Further in lieu of the sustainable development one more and most progressive step which is
taken is agenda for sustainable development. The Goals and targets will stimulate action over the
next fifteen years in areas of critical importance for humanity and the planet:
People
We are determined to end poverty and hunger, in all their forms and dimensions, and to ensure
that all human beings can fulfil their potential in dignity and equality and in a healthy
environment.

15
Article xx general exception GATT laws
16
Hevana coference comittie discussion EPCT/A/PV/30, p. 13
Planet
We are determined to protect the planet from degradation, including through sustainable
consumption and production, sustainably managing its natural resources and taking urgent action
on climate change, so that it can support the needs of the present and future generations.
Prosperity
We are determined to ensure that all human beings can enjoy prosperous and fulfilling lives and
that economic, social and technological progress occurs in harmony with nature.

Peace
We are determined to foster peaceful, just and inclusive societies which are free from fear and
violence. There can be no sustainable development without peace and no peace without
sustainable development.17
It can be further justified on the ground of a convention related to the protection of animals at the
international level. Under this there are few articles which talk about the same in the clear face.
The articles are:-
Parties shall take all appropriate steps to minimize and control the capture or killing
of wildlife, particularly the methods thereof, in order to reduce the suffering of target
animals to the minimum possible, and to minimize to the greatest extent possible
indiscriminate harm to nontarget animals or the environment.18
Parties shall take all appropriate steps to use those scientific management practices
which result in the least suffering to wildlife and shall conserve wildlife habitat
wherever possible.19
.Parties shall individually and jointly take all appropriate measures in accordance with
the provisions of this Convention and those protocols in force to which they are party,
to prevent the subjection of animals to cruelty and unnecessary suffering and to
conserve the natural habitat of wildlife.20
The Contracting Parties shall co-operate in the formulation and adoption of
additional protocols as the opportunities arise.

17
Sustainable development mission 2030
18
ARTICLE 3 capturing and killing of animals
19
ARTICLE 4 wildlife management and habitait
20
ARTICLE 7 companion animals
 A safeguard from Incresing haegmony:-

Your lordship The act of state of locasia was a step in order to protect the state from the
increasing haegmonic control of the state of Grandiana

Meaning of heagmony

is the political, economic, or military predominance or control of one state over others
hegemony denoted the politicomilitary dominance of a city-state over other city-states. The
dominant state is known as the hegemon. Hegemony is the processes by which dominant culture
maintains its dominant position: for example, the use of institutions to formalize power; the
employment of a bureaucracy to make power seem abstract (and, therefore, not attached to any
one individual); the inculcation of the populace in the ideals of the hegomonic group through
education, advertising, publication, etc.; the mobilization of a police force as well as military
personnel to subdue opposition.

In international relations, there is a consolidated tradition that associates hegemony and world
order. Nevertheless, the relation between the two variables, their interpretation, and the direction
of the causal link between them, is still a matter of scholarly debate.

The definition of hegemony and an empire has been hotly debated over the past few decades.
Some believe hegemony is a tactic to avoid the word empire and the negative connotations that
are associated with it. Others believe that a hegemony is a more technical, well thought out form
of an empire. Some believe it is a lesser form of imperialism. Although one thing that is not
disputed is the fact that hegemony very well is a form of dominance over a smaller, weaker
nation, and no matter what one may call it, or how it may be approached, dominance will
continue to flourish through the ages. According to Gramsci, hegemony never disappears but is
constantly changed. He describes two forms of social control. The first type is coercive control
which is achieved through the use of direct force or threat of force. (Simon, R. 1992) The second
type is consensual control which arises when individuals voluntarily adopt the worldview of the
21
dominant group. Gramsci says that within civil society, the dominant group exercises
hegemony which is intellectual domination over the subordinate group or consensual control,

21
(Simon, R. 1992)
whereas in political society, domination is exercised through state or juridical government or
coercive control. (Gramsci, A. 1971) These functions are very much interlinked in the sense that
intellectual domination is usually preceded by political domination. Social hegemony and
political government are enforced historically in which the dominant group enjoys its position
because of its function in the world of production and legally by state coercive power which
enforces discipline on groups that do not consent.This gives rise to a division of labor or
specialization and to a whole hierarchy of qualifications.22

Hegemony is exercised in civil society which is a tangle of class struggles and democratic
struggles. (Simon, R. 1992) Hegemony in civil society must achieve leadership in the sphere of
production taken up by the bourgeoisie, controlling the productive process and achieving state
power. Those who have economic power have a strong link to political power and vice versa.
Those who monopolize control over economic production, distribution, exchange and
consumption is the dominant class which has the most power.

This very concept of heagmony is a baised one. Actually with development of the time and much
specifically after the end of the second world war the philosophy of heagmony has developed a
lot. But this haegmonic concept has developed at its peak much after it that is with the
brakedown or collapse of USSR. The critics show that how after the same or after the very 1990
ie after the fall of berlin wall and with the demolishion of USSR the very country USA has
gained the power and is the only super power of the world

This very country has emerged to be very much self concentric. The facts show that how slowly
and gradually the world become the monopoly of the one nation ie USA.

Your lordship the very heagmonic concept is very wrong on the ground of equalitariaqn principle
evolved by the very united nation organization. The very chapter of purposes and principles
of united nation organization talks about the said principle of equality. It says:-

22
(Gramsci, A. 1971)
 To develop friendly relations among nations based on respect for the principle of equal
rights and self-determination of peoples, and to take other appropriate measures to
strengthen universal peace;23

This very article explicitely says about the promotion of friendly relations between the countries.
But the very base on which it is been made is to develop equality among the countries.

Meaning of equality among nations

Equality among nation is a very important aspect and a doctraine of the international law. This
means that every country has equal powers and in all the respects and aspects the every country
is equal.

Actually this very concept is just like the backbone of the international jurisprudence regarding
the sovereign equality among the nations. Hence the legendry international scholars have coined
this very term in order to encompass this very ideology and make the people of each country
aware of the fact that yes the people are living in a sovereign world. Where neither country is
allowed to over power the another one and every nation has its own rules and regulations which
the people follow. This means no country can suppress the other nation to follow there rules.

The very landmark judgement given by icj24 shows that at the international level too neither
country is above the law and all the countries are equal in every context before the eyes of law.

Your lordship the above discussion is done just to prove the very context of equalitarian
principle which is followed even at the international level. This fact can be further proved by the
very specimen of MFN status principle. This very principle is also based on the premises of the
equalitarian principle only.

So coming back to the facts of our case, The facts state that in the treaty signed between the two
state ie the state of grandiana and the state of locasia, the profit ratio was 70(grandiana):
30(Locasia).

23
ARTICLE 1(2)-PURPOSES AND PRINCIPLES OF UNITED NATION
24 The Republic of Nicaragua v. The United States of America (1986) ICJ 1
This fact explicitely illustrate that the main aim of the state of grandiana was not to develop the
very nation of the locasia but to get maximum economic benefit for themselves. This can be
proved from these lines:-

The trading port in this region would give Grandiana easy access to the major regions in the
continent of Eurosia

Hence it is proved from these lines that being a very strong and rich country the main aim of
state of grandian is to impose its control on the very continent of eurosia and its countries that
was out of its reach. That is the reason why when the treaty between the two revoked with the
time the state of grandiana has stoped the imports without acknowledging the further future
outcomes and the long drawn out friendly relations. Hence it can be submitted your lordship that
this act of the state of grandiana is under the faade. But is eplicitely clear that control was the
main purpose in lieu of trade.

The statement of the state of grandiana about the increasing revenue exposer for the state of
locasia was just fictitious and was a step to make locasia peep inside the nest and grab the same.
ISSUE 2:- THE REVOCATION OF MFN STATUS IS A LEGAL ACT OR MERELY A
POLITICAL MOVE:-

Your lordship the revocation of MFN status was completely a legal step and not merely a
political move. This can be justified under the following heads:-

Introduction:-

The MFN principle, first embodied in treaties of friendship, commerce and navigation, was
regarded even in the inter-war years as an essential condition of the free and healthy
development of commerce between States25. In the negotiations for the International Trade
Organization (ITO) the United States argued that an MFN provision was absolutely
fundamental, and the MFN provision included in the draft charter for the ITO became the first
paragraph of GATT Article I, essentially unchanged from the initial draft proposal of the United
States.26

Article I of the GATT provides:

1. With respect to customs duties and charges of any kind imposed on or in connection with
importation or exportation or imposed on the international transfer of payments for imports or
exports, and with respect to the method of levying such duties and charges, and with respect to
all rules and formalities in connection with importation and exportation, and with respect to all
matters referred to in paragraphs 2 and 4 of Article III,* any advantage, favour, privilege or
immunity granted by any contracting party to any product originating in or destined for any other
country shall be accorded immediately and unconditionally to the like product originating in or
destined for the territories of all other contracting parties.27

The MFN principle is generally regarded as a cornerstone of the GATT. Although stated
explicitly in Article I:1, it is also found directly and indirectly in a number of provisions of the

25
The World Economic Conference: Final Report 34, League of Nations Doc. C.356.M.129.1927.II (C.E.I.46) (1927).
26
JOHN H. JACKSON, WORLD TRADE AND THE LAW OF THE GATT 252 (1969). A reference to government contracts
for public works was excluded from both the ITO and the GATT.
27
GATT WTO ARTICLE 1
GATT.28 It reflects the fact that a multilateral trading regime depends on non-discrimination
in that each party has to be able to ensure that its traders have equality of competitive
opportunities.29 As the Appellate Body pointed out in Canada-Autos, the object and purpose of
GATT Article I:1 is to prohibit discrimination among like products originating in or destined
for different countries.30 Somewhat circularly, the Appellate Body went on to say, that [t]he
prohibition of discrimination in Article I:1 also serves as an incentive for concessions, negotiated
reciprocally, to be extended to all other Members on an MFN basis. GATT Article I:1 provides
more than an incentive; it contains an obligation to extend such benefits at all WTO Members.
The MFN obligation is repeated in GATT Article II, which relates specifically to tariff bindings.
Each contracting party is required to accord to the commerce of the other contracting parties
treatment no less favourable than that provided for in its schedule of tariff concessions. It is to
be noted the form of the MFN provision in GATT Article II differed from that of GATT Article
I. Under GATT Article I advantages had to be accorded immediately and unconditionally;
under GATT Article II, treatment that was no less favourable had to be provided to other
contracting parties.

MFN under GATT was a provision relating initially to tariffs. The wording of GATT Article I
expresses this: with respect to customs duties and charges of any kind. It related to border
measures, and equality of competitive opportunities at the border was necessary for the operation
of comparative advantage that underpinned the notion of free trade. Under the traditional GATT
negotiating process, contracting parties would negotiate tariff concessions on a bilateral basis.
These tariff commitments would be included in the schedule of commitments of each contracting
party and by virtue of the operation of the MFN provision all other contracting parties would be
entitled to the benefit of those tariff concessions. Although the rationale of comparative
advantage indicates that economic efficiency is promoted even where tariff concessions are
granted to States that have not given anything in exchange for that benefit, States do not always

28
General Agreement on Tariff and Trade [GATT] arts. II, III (7), IV, V (2), (5) & (6), IX (1), XIII (1), XVII (1), and XX (j)
29
7 For a discussion of the economic and non-economic rationales for MFN within the multilateral trading system,
see JOHN H. JACKSON, THE WORLD TRADING SYSTEM: LAW AND POLICY OF INTERNATIONAL ECONOMIC
RELATIONS 158-60 (2nd ed., 1997).
30
Appellate Body Report, Canada Certain Measures Affecting the Automotive Industry, 84, WT/DS139/AB/R,
WT/DS142/AB/R (May 31, 2000) [hereinafter Canada-Autos Appellate Body Report]
view things that way. States that obtain such benefits without providing anything in exchange are
often viewed as free riders.

Legal status of mfn status:-

In order to facilitate the stocktaking exercise that follows, to better understand the different
exceptions to MFN treatment as they apply as well as the current debate on the scope of
application (particularly substantive protection provisions or provisions relating to ISDS
contained in third treaties), it is important to briefly review the legal qualifications of MFN
treatment.31

1)It is a treaty-based obligation that must be contained in a specific treaty

The legal basis for an MFN treatment clause is always a specific treaty (the basic treaty) that
contains the MFN treatment clause. The clause may take the form of a specific provision or a
combination of various provisions of the treaty. Even though thousands of IIAs currently in force
contain an MFN treatment clause, it remains a treaty-based obligation. It is a conventional
obligation and not a principle of international law which applies to States as a matter of general
legal obligation independent of specific treaty commitments. Even though MFN treatment may
be rightly seen as a general and constant treaty practice when it comes to IIAs, it is clear that
countries grant this benefit and acquire this obligation in the context of a specific (reciprocal)
clause contained in a binding treaty. As Article 7 of the Draft Articles on MFN establishes:
Nothing in the present articles shall imply that a State is entitled to be accorded most-favoured-
nation treatment by another State otherwise than on the basis of an international obligation
undertaken by the latter State.

The commentaries to the MFN Draft Articles in this respect are clear: In practice, such an
obligation cannot normally be proved otherwise than by means of a most-favoured- nation
clause, i.e. a conventional undertaking by the granting State to that effect. Although the
grant of most-favoured-nation treatment is frequent in commercial treaties, there is no evidence
that it has developed into a rule of customary international law. Hence it iswidely held that only

31
(UNCTAD 1999a) research on MFN
treaties are the foundation of mostfavoured-nation treatment. A distinction must be made,
however, between the nondiscriminatory content of MFN treatment and the general requirement
of non-discrimination contained in international law. The fact that States have the sovereign right
to discriminate and regulate the entry and operation of aliens within their territory does not mean
that such discretion is unlimited and not subject to international law. MFN treatment, as
explained throughout the paper, requires the host State to accord a covered foreign investor
treatment that is no less favourable than that it accords to a third foreign investor. It requires a
comparison between two foreign investors in like circumstances, being therefore a comparative
test not contingent to any arbitrariness or seriousness threshold. Nondiscrimination under
international law, by contrast, constitutes an absolute standard (it is due no matter how other
investors are treated) and refers to gross misconduct, or arbitrary conduct that impairs the
operation of the investment. It may involve, for instance, discrimination based on arbitrariness,
sexual or racial prejudice, denial of justice or unlawful expropriation.

2. The MFN treatment provision is a relative standard,

which means that it implies a comparative test. Conversely, absolute standards require treatment
no matter how other investors are treated by the host State. MFN treatment operates in the same
conditions as NT and it requires a comparison as well as the finding of more favourable
treatment granted to investors of a given nationality as opposed to the investors covered by the
basic treaty. For that reason, the standard lacks a content defined a priori and it would not
prevent or target arbitrary acts where all foreign investors receive similarly bad treatment
(without prejudice that other violations may be found).9 Any assessment of an alleged breach
calls not only for the finding of an objective difference in treatment between two foreign
investors, but also for a competitive disadvantage directly stemming from this difference in the
treatment. This finding must be assessed through a comparison. Thus a comparison and an
objective test of less favourable treatment are required in order to assess the violation of an MFN
treatment clause.

3. It is governed by the Ejusdem Generis principle

The MFN clause is governed by the Ejusdem Generis principle, in that it may only apply to
issues belonging to the same subject matter or the same category of subjects to which the clause
relates. This principle, consistently affirmed by practice and jurisprudence (domestic and
international), was highlighted in the Ambiatelos11 decision and later further explained by the
Draft Articles on MFN . In the area of investment, the principle has been highlighted by the
Maffezini decision and not challenged by the many other cases that followed suit. This principle
circumscribes the application of the MFN treatment clause to those subject matters regulated by
the basic treaty. For instance, the MFN treatment clause of a commercial treaty between States A
and B could not apply to or attract a benefit conferred by State A to State C (for the benefit of
State B) related to diplomatic immunity or to aviation or to taxation benefits. In IIAs, the
subject/beneficiary is the investor and the subject matter is investment. Depending on the scope
of the treaty, the subject matter can be investment promotion, investment protection, investment
liberalization and/or a combination thereof. The MFN treatment clause will apply to the
investment and/or the investor depending on its substantive scope of application and the
specific wording. Thus, the MFN clause may only deal with treatment related to the covered
person/beneficiary or the asset enterprise as listed in the investment definition.

4. It requires a legitimate basis of comparison

In order to compare subject matters that are reasonably and objectively comparable, an MFN
treatment provision must be applied to similar objective situations. Providing MFN treatment
does not require that all foreign investors have to be treated equally irrespective of their concrete
business activities or circumstances. Different treatment is justified amongst investors who are
not legitimate comparators, e.g. do not operate in the same economic sector or do not have the
same corporate structure. The MFN treatment clause requires that the host State does not
discriminate de jure or de facto on the basis of nationality. For instance, MFN treatment does
not impede host countries from according different treatment to different sectors of the economic
activity, or to differentiate between enterprises of different size, or businesses with or without
local partners. During the MAI negotiations some delegations indicated that they understood
both MFN treatment and NT to implicitly require a comparative context to be applied. Other
delegations considered it necessary to specifically include the formula in like circumstances.
Currently, as we shall see in Section II, some IIAs explicitly include a reference to like
circumstances, like situations or similar wordings, while others remain silent. Irrespective of
the precise wording, the proper interpretation of a relative standard requires that the treatment
afforded by a host State to foreign investors can only be appropriately compared if they are in
objectively similar situations. However, it is important to note that by not making a specific
reference to like circumstances or any other criteria for comparison, the Contracting Parties do
not intend to dispense with the comparative context, as it would distort the entire sense and
nature of the MFN treatment clause.

There are not many arbitration cases dealing with the actual comparison between the treatment
two foreign investors receive from the host State in given circumstances. There is therefore little
guidance to be found in arbitral awards on how the comparison should be made. However,
assessing a possible violation of MFN treatment may be done by borrowing from findings of
violation of NT. Indeed, both treatment provisions share the same comparison requirement (the
only difference being that under NT the applicable comparator of the foreign investor/investment
is a national investor/investment). In this connection several awards rendered under NAFTA
(1992) have consistently established that an assessment of an alleged breach of NT requires an
identification of the comparators and a consideration of the treatment each of them receives.
Tribunals have used a variety of criteria for comparison depending on the specific facts and the
applicable law of each case. They include: same business or economic sector,14 same economic
sector and activity,15 less like but available comparators16 and direct competitors.17 Flexibility
has prevailed, with the aim of comparing what is reasonably comparable and considering all the
relevant factors.

5. It relates to discrimination on grounds of nationality

Both MFN treatment and NT are designed to prevent discrimination for reasons of or on the
grounds of nationality. In order to establish a violation of MFN treatment, the difference in the
treatment must be based on or caused by the nationality of the foreign investor. After a
reasonable comparison has been made amongst appropriate comparators, there are factors that
may justify differential treatment on the part of the State among foreign investors, such as
legitimate measures that do not distinguish, (neither de jure nor de facto) between nationals and
foreigners.18 In Parkerings v. Lithuania, the tribunal established that, to constitute a violation of
international law, discrimination had to be unreasonable or lacking proportionality, and that an
objective reason may justify differentiated treatment in similar cases.
6. It requires a finding of less favourable treatment

With the exception of foreign-investment-specific laws and regulations, the domestic legal
framework of the host State applies to all economic actors and operators in the same manner,
whether foreign or national. It therefore applies to the investor and its investment, irrespective of
his nationality. States do not differentiate treatment granted to foreign investors of different
nationalities once established and operating in the host States economy. However, in the pre-
establishment phase, difference in the treatment afforded to investors of different nationalities is
likely, depending on the treaty commitments made with the home State of these investors.
Treatment is primarily materialized through measures, that is, State laws, regulation and
conduct. The universe here is vast: basically, all measures that may affect the course of business
e.g. laws and regulations on business law, corporate and other forms for doing business,
taxation, labor, environment, bankruptcy, access to financing, financial regulation, land
ownership, use or lease, regulatory or other barriers to entry, competition, horizontal and sectoral
regulations .The foreign investor covered by an MFN treatment clause is entitled to receive any
more favourable treatment that a third foreign investor is receiving in any of these areas of the
laws and regulations of the host State, whether of general application or foreign-investment-
specific. Arguably, while laws and regulations within the domestic framework are critical for the
course of an investment, differences of content amongst the various IIAs do not imply per se that
one foreign investor is being put at a disadvantageous competitive position vis--vis a third
country foreign investor. For instance, while in principle an investor will prefer to be covered by
an IIA that includes a FET provision than by an IIA that does not, the mere absence of such
provision does not affect the investor assuming that the host State never breaches the provision.
Similarly, even though the investor may prefer to submit a claim to arbitration directly than
having to resort to domestic courts as a preliminary step for 6 or 18 months, one cannot
presuppose without rigorous analysis that such direct access is more beneficial in and by itself,
the amount of compensation the investor would potentially receive being based on the date the
damage occurred. Different treatment does not necessarily mean less favourable treatment, and
less favourable treatment rests on objective premises, not on perception.
 Waiver of MFN status:-
The theory explained above related to the concept of most favoured nation exclusively postulates
or show that MFN status is one of the important aspect of international trade laws. The most
favoured nation concept is a part of GATT laws. These GATT laws are the backbone of
international trade laws.

The waiver of MFN status is not an easy task. The very basic question which arise in the mind of
the people that was the waiver of MFN stasu correct. Moreover what should be the absolute base
for the waiver of MFN status. In our present case the state of Locasia has taken the MFN status
under the following heads:-

Un-necessery ban on imports:-

Export is essential part of the Trade. Among the word export is considered as "export led
growth" hypothesis or theory or assumption for a countries development. Export led growth is
very debatable issue around the word and different opinions of economists. Economists strongly
beliefs that to measure economy growth is really complex which depends on various factors like
trade, capital accumulation (both physical and human), price fluctuation, income distribution and
political condition as well as many uncertain characteristics (Emilio 2001).

From the last three decades export led growth has been issue of substantial research and
empirical examination (Mahadevan 2007). The export led growth is always debated topic in the
literature on Trade and development. The relationship between exports and economic growth is
one of the main comprehensively investigated issues on the Development and empirical
literature. There is argue on whether countries should encourage export sector to gain economic
growth climaxed into which is identified as Export- Led Growth (ELG), ELG indicates that
countries adopt an external direction tend to achieve superior economic performances

Export led growth

The fundamental relation between economic growth and exports has long been border and
central of substantial discussion and debate among the economists, public sectors and trade
professionals. On the bases of theoretical approach, there are four probable results (Chen 2007).
First result is that export growth is measured to be the main causal of an economic growth in
production and employment. It is called Export-led Growth (ELG) hypothesis. ELG growth is
categorised in one direction consideration from export to Gross Domestic product. The second
result is Growth driven Export hypothesis assumes that an increase in GDP usually direct to
representing rise in exports (Bhagwati 1988). There is one direction relationship from output to
export for Growth Driven Export. Third and fourth outcomes also very important can't ignorable
which two-way direction relationship and neutral relationships between economic growth and
exports (Grossman & Helpman 1991).

In the simple words export lead growth is an economic development strategy which is used by
developing country to another country to get comparative advantage. Export and foreign trade
play a great role to rise country's economic growth and development. ELG model or strategy or
hypothesis is mainly used for the counties like developing countries and developed countries to
generate benefits on each other. According to (Jung & Marshall 1985) export led growth is
enhanced output, employment and consumption which directs to rise in the demand for a
country's output.

There is positive bonding between the exports and economic growth it's gained from the foreign
markets. In other word can say that "export is an engine of growth". According to (Awokuse
2008) , export can grow three ways; first, export development can be a medium for output
growth directly as a part of total output. There is demand of domestic products in the foreign
market which can reason for economic growth in output through enhancement in the income and
employment in the sector of export. Second, export growth can also influence via different ways
like large number of utilization ability, distribution of efficient resource, economies of scale
development and inspiration of technological perfection because of overseas (foreign markets)
competition (Helpman & Krugman 1985). With the help of the economies of scale companies or
firms or organisations can take advantage on non-export sector which is externally but internally
it helpful to whole economy growth. Third, diversification of exports provides foreign exchange
which is essential for output growth (Esfahani 1991). Following researchers have (Feder 1982),
(Ram 1985), (Tyler 1981), (Ukpolo 1994), and (Bodman 1996) the same opinion on the export
and economic growth relationship.

The models of (EDWARDS 1991) propound integrating positive effects from trade to
enlargement are correlated to an significantly near originated by (Lewis 1955) who argue that
developing countries have more incorporated technological advantage than rest of the world
which does not integrated. There are three main groups which highly interested on the export
performance; first is public - policy - makers, second managers and third is researcher (Sousa et
al. 2008) (Katsikeas, Leonidou & Morgan 2000) . Public-policy-makers analyse that exporting is
approach to collect foreign exchange reserves, rising employment levels, better productivity and
in that way increasing wealth of the country (Czinkota 1994). Managers, it is essential because it
boosts corporate development and make sure that firm should survive for long term (Samiee &
Walters 1990) (Terpstra & Sarathy 2000). Research has also important role they identifies
exporting a challenging and promising theories in international marketing (Zou & Stan 1998).

There are only two aspect of the export led growth the first is that export led growth can generate
profit so that country can balance their finances as well as reduce the long term debts and
develop material for the export. The second aspect is that export led growth which is much more
debatable issue which increase the export growth which helpful to increase in the GDP of the
country. According to (Thirlwal 2000, p. 6) economics theories indicates that two types of
benefits from trade liberalization which has subsistence advantage. The two benefits are static
gains and second dynamic gains. Static gains can be achieved by the resources reorganisation
from lease productive sector to higher sector, directing to specialization. The second dynamic
gains involve with international trade, enhancement of investment and quick productivity
development based on the economics of scale, leaning by doing effects and the acquiring
knowledge regarding overseas, specially throughout foreign direct investment.

Hence it is clear that according to the phase of national income the major proportion of countries
income is through the export itself. Here the facts clearly illustrate that:-

It has not been able to successfully achieve proper industrialization till yet. It still depends
on the exports of rudimentary goods; and the agriculture for its finances

Hence the exports were the huge source of finances. So the ban on import of goods by the state
of Locasia has severely impacted the economy of Locasia as mentioned in the facts:-

These bans severely impacted the economy of Locasia. Consequently, the exports from this
country to Grandiana have reduced by 60 percent. This would lead to an estimated loss of
USD 40 million in one year, as per the State of Locasia.
Under the GATT laws of WTO certain articles are specifically mentioned which talks about the
the fact that the unreasonable ban on import which cause problem and a hazards to the other
contracting party should not be done. Under the GATT laws the articles which is related to this
are article xii of GATT laws.

Restrictions to Safeguard the Balance of Payments

2 i) to forestall the imminent threat of, or to stop, a serious decline in its monetary
reserves;or
(ii) in the case of a contracting party with very low monetary reserves, to achieve a
reasonable rate of increase in its reserves.

Contracting parties applying restrictions under this Article undertake:

(i) to avoid unnecessary damage to the commercial or economic interests of any other
contracting party;*

(ii) not to apply restrictions so as to prevent unreasonably the importation of any

description of goods in minimum commercial quantities the exclusion of which would
impair regular channels of trade; and32

Due regard shall be paid in either case to any special factors which may be affecting the reserves
of such contracting party or its need for reserves, including, where special external credits or
other resources are available to it, the need to provide for the appropriate use of such credits or
resources.

As it is very clear with the GATT laws has specifically mentioned the safeguard to the other
contracting parties in whose respect the import has been restricted. By reading the very aspect it
can be easily seen that one country has been retricted to do an act which may lead to a very

32
ARTICLE XII GATT LAWS
problem to the finance of the other country which is not only problematic to the other country in
respect to the economy or finance but to the life of the countrymen as well.

Your lordship all these step by the State of granidana is under the faade. But it can be presume
by the facts that the main aim of the state was to cause a heavy loss to the state of Locasia.

Heavy subsidies to the local exporters:-

Export subsidy is a government policy to encourage export of goods and discourage sale of
goods on the domestic market through direct payments, low-cost loans, tax relief for exporters,
or government-financed international advertising. An export subsidy reduces the price paid by
foreign importers, which means domestic consumers pay more than foreign consumers.
The World Trade Organization (WTO) prohibits most subsidies directly linked to the volume
of exports.

Export subsidies are also generated when internal price supports, as in a guaranteed minimum
price for a commodity, create more production than can be consumed internally in the country.
(These price supports are often coupled with import tariffs, which keeps the domestic price high
by discouraging or taxing imports on the difference between the world price and the mandatory
minimum.) Instead of letting the commodity rot or destroying it, the government exports
it. Saudi Arabia is a net exporter of wheat, Japan often is a net exporter of rice

Export subsidies can cause inflation: the government subsidises the industry based on costs, but
an increase in the subsidy is directly spent on wage hikes demanded by employees. Now the
wages in the subsidised industry are higher than elsewhere, which causes the other employees
demand higher wages, which are then reflected in prices, resulting in inflation everywhere in
the economy.

This export subsidy is the most tricky and an intelligent move of the country towards the other
country. There is an example on this issue. For example the exporting country of free trade has a
large stock of wheat and wheat production. The united states have provided heavy subsidies to
the wheat exporters. Now this lead to an increase in wheat exports to the maxican countries. Now
America and maxico are the two wheat producing countries. Now the more supply will be made
and hence leads to lowers down the price of the things and hence the imports of the other
maxican country will be increased causing to more demand of merican wheat and a less demand
to the maxiacan wheat.

Similarly in our case it can be seen that the Grandiana had given the subsidies to its local
exporters in order to export the things which is produced in his country. On the other hand the
state of Grandiana has put a ban on import of goods this means that when the grandiana goods
easily reach to the state of Locasia then this will lead to less rate of the same. Hence the demand
of the people will be there will be more. Hence this lead to huge profit to the state Grandiana on
the other hand ban on imports causes loss to Locasia.

Hence your lordship it can be said that all this step of state of Grandiana was under the faade to
take the revenge from the state of Locasia in the name of human rights and labour rights
protection. Hence the step taken by state of Locasia is completely correct in order to protect its
country and countrymen from the heavy losses. Moreover to make its country to sustain and last
long.

Your lordship further the GATT also talks about the very factor of subsidies.

Article XVI*: Subsidies

Section A Subsidies in General

1. If any contracting party grants or maintains any subsidy, including any form of income or
price support, which operates directly or indirectly to increase exports of any product from, or to
reduce imports of any product into, its territory, it shall notify the CONTRACTING PARTIES in
writing of the extent and nature of the subsidization, of the estimated effect of the subsidization
on the quantity of the affected product or products imported into or exported from its territory
and of the circumstances making the subsidization necessary. In any case in which it is
determined that serious prejudice to the interests of any other contracting party is caused or
threatened by any such subsidization, the contracting party granting the subsidy shall, upon
request, discuss with the other contracting party or parties concerned, or with the
CONTRACTING PARTIES, the possibility of limiting the subsidization.
Section B Additional Provisions on Export Subsidies*

2. The contracting parties recognize that the granting by a contracting party of a subsidy on the
export of any product may have harmful effects for other contracting parties, both importing and
exporting, may cause undue disturbance to their normal commercial interests, and may hinder
the achievement of the objectives of this Agreement.

3. Accordingly, contracting parties should seek to avoid the use of subsidies on the export of
primary products. If, however, a contracting party grants directly or indirectly any form of
subsidy which operates to increase the export of any primary product from its territory, such
subsidy shall not be applied in a manner which results in that contracting party having more than
an equitable share of world export trade in that product, account being taken of the shares of the
contracting parties in such trade in the product during a previous representative period, and any
special factors which may have affected or may be affecting such trade in the product.*

It talks about the fact that undoubtedly it is the right of one state can take steps in favour of
economical prospects but it has to see the rights of the other contracting party too and not
anything which violate even the basic rights of the people.

A violation of Free trade rule:-

The facts of the case show that State of Granidana was the follower of the free trade rule. Under
the free trade agreement there is a cobncept of free trade area. A free-trade area is the region
encompassing a trade bloc whose member countries have signed a free-trade agreement (FTA).
Such agreements involve cooperation between at least two countries to reduce trade barriers
import quotas and tariffs and to increase trade of goods and services with each other.If people
are also free to move between the countries, in addition to a free-trade agreement, it would also
be considered an open border. It can be considered the second stage of economic integration

Hence under this there must be a freedom of trade between the two countries without any sort of
tarrif barriers. Unlike the rule the state of Granidana has put a restrictions on imports and has
also increased subsidy hence is nit according to the rules as mentioned above.
Further all these incedents show that the main aim of the State of Grandiana was to make the
country as much week that the state of Locasia should want the support from its existence and
then the state of Grandiana can place its heagmonic control over the very state and make its
allied. Hence in order to protect the state from this the government has taken a nice step.

Compensation &damages:-
The state of Locasia is not at all laible to pay the compensation and dmages to the state of
Grandiana. This is because of the fact the state of Locasia has done everything in order to
safeguard the people of the country along with the nature and environment which is the primary
goal and prospect of a nation. Further the steps taken in relation to the subsidies and the taxes
and other economic fragments were a step taken in order to evade the great hegemonic control. It
is of no imagination that there will be a partial justice without seeing the good prudence of the
nation.
 PRAYER

The State of Grandiana respectfully request the honable dispute settlement body of the world
trade organization to kindly resolve the dispute between the two state namely the state of
Grandiana and the state of Locasia as soon as possible.