Second beer panel
Second beer panel: a dispute in 1991 in the GATT between the United States and Canada. It concerned the import, distribution and sale of certain alcoholic drinks by Canadian provincial marketing agencies. There had been a case on the same issue in 1988, hence the name of this case. The Canadian marketing agencies ("liquor boards"), created by provincial laws, had a monopoly on the supply and distribution of alcoholic beverages within provincial boundaries. They also had a monopoly on the import of alcoholic beverages from other provinces or foreign countries. A provincial licence was needed for the brewing and selling of beer in a province, and most domestic beer had to be brewed in the province in which it was sold. All provinces operated government liquor stores, but they also allowed beer sales at privately-owned retail outlets and brewery stores. The 1988 panel had concluded that mark-ups on imported products that were higher than those on domestic products could only be justified in precisely defined circumstances, that the burden of proof in this regard lay with Canada, and that the listing requirements and the availability of points of sale discriminating against imported alcoholic beverages were restrictions made effective through state-trading operations contrary to Article XI (General Elimination of Quantitative Restrictions). In 1988, following the first panel, Canada concluded an agreement with the European Community aimed at resolving some of the points at issue. This agreement was to be implemented by the provinces on a most-favoured-nation basis. The panel concluded that, with the exception of one province, the United States had not substantiated its claim concerning Canadian listing and delisting practices. As to restrictions on access to points of sale, the panel considered that imported beer had access to fewer of them. It found that these
Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf
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Author of the text: W. Goode
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