Question
Based on the paragraph below, comment on the compliance strategy for Nestle. Discuss the positives and negatives of the Company's compliance policy and its WTO
Based on the paragraph below, comment on the compliance strategy for Nestle. Discuss the positives and negatives of the Company's compliance policy and its WTO compatibility. Identify the specific WTO agreement/ article/certification etc. which could help Nestle, wherever found appropriate.
In May 2011, nineteen leadingLaos-based international NGOs, includingSave the Children,Oxfam,CARE International,Plan International, andWorld Visionlaunched a boycott of Nestl with anopen letter.Among other unethical practices, they criticised a failure to translate labelling and health information into local languages and accused the company of giving incentives to doctors and nurses to promote the use of infant formula. Considerable controversy has surrounded Nestl's bottled water brand Arrowhead sourced from wells alongside a spring in Millard Canyon situated in a Native American Reservation at the base of theSan Bernardino MountainsinCalifornia. While corporate officials and representatives of the governingMorongo tribehave asserted that the company, which started its operations in 2000, is providing meaningful jobs in the area and that the spring is sustaining current surface water flows, a number of local citizen groups and environmental action committees have started to question the amount of water drawn in the light of the ongoing drought. In August 2015, theUkrainianTV channelUkrayinarefused to hire a worker of the weekly magazineKrayina, AllaZheliznyak, as a host of a cooking show because she speaks Ukrainian.
The demand to only hire a Russian-speaking host was allegedly set by a sponsor of the show -Nesquik, which is a brand of Nestl S.A.Activists of theVidsichcivil movement held a rally near the office of the company inKyiv, accusing Nestl of discriminating against people who speak Ukrainian and supporting theRussificationof Ukraine. At the conclusion of a year-long self-imposed investigation in November 2015, Nestl disclosed that seafood products sourced in Thailand were produced with forced labour. Nestl is not a major purchaser of seafood in Southeast Asia, but does some business in Thailand - primarily for itsPurinacat food.In September 2017, an investigationconducted by NGO Mighty Earth found that a large amount of the cocoa used in chocolate produced by Nestl and other major chocolate companies was grown illegally innational parksand other protected areas inIvory CoastandGhana.Multiple reports have documented the widespread use ofchild labourincocoaproduction, as well asslaveryandchild trafficking, throughoutWest Africanplantations, on which Nestl and other major chocolate companies rely.India has entered an MRA agreement with Australia for export of coffee. Australian importers have been insisting Nestle India to use irradiation process in India before exporting itscoffee to Australia wherein Indian manufacturing unit of Nestle have been exporting coffee to EU and Japan using VHT technology. Nestle was forced by Australian to shift to irradiation technology. To avoid this, Indian manufacturing units strategized to shift their sourcing of cocoa beans from India to North Ghana at the time when there was a disease outbreak in West Ghana. However Indian government in pursuit of protecting Indian population from the disease outbreak bans Nestles procurement of Coffee beans from entire Ghana. Nestle demands pre shipment inspection locally at Ghana to prove its origin,however agencies in Ghana took almost a month to furnish the compliance report. As a consideration towards diversification, Nestle tried to export it'sRTE products to Australia. Company planned to follow CODEX standards to be safe, but found that Australians standards deviated from CODEX. Hence Nestle had to reinvest towards complying to all its SPS and TBT requirements. However was denied the entry at the Australiancustoms on account of change of pesticide regulations in Australia while the product was in transit.
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