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You are asked to post an answer to theproblem titled Complexian Distribution Services at pages 699-700 of Joost H.B. Pauwelyn, Andrew T. Guzman, and Jennifer

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You are asked to post an answer to theproblem titled "Complexian Distribution Services" at pages 699-700 of Joost H.B. Pauwelyn, Andrew T. Guzman, and Jennifer A. Hillman, International Trade Law (2016).

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F. Problem: Complexian Distribution Services 699 air, rail, road, and auxiliary services) and business services (computer, profes- sional, and other business services). 10 101392 F. PROBLEM: COMPLEXIAN DISTRIBUTION SERVICES Complexia-Measures Concerning the Supply of Distribution Services (Complaint by Hubris) The parliament of Complexia, a developing country, has passed a new law that deals with distribution services. The law stipulates that suppliers of distri- bution services need to have a commercial presence in Complexia in order to deliver their services to the local market. Such an establishment should be a juridical person, which could be a joint venture or corporation with no more than 49 percent equity interest beneficially owned by foreign nationals. In addition, priority would be given to firms that offered the best conditions in terms of training of local personnel and the transfer of technology. The law complements existing immigration provisions dealing with the entry and stay of foreign persons by providing specific definitions of "managers" and "exec- utives," and specifies time limits and/or conditions for the renewal/extension of their stay. The law also introduced a prohibition on the entry and tempo- rary stay of specialists, business visitors, and independent professionals. In the horizontal section of its schedule, Complexia has the following entries: Limitations on Sector or Limitations on National Additional subsector Market Access Treatment Commitments ALL SECTORS 3) None 3) Preference INCLUDED IN THIS SCHEDULE 4) Unbound except in access will be granted to for measures foreign service affecting the entry suppliers/entities and temporary stay that offer the best of the following categories of conditions in terms of the transfer of natural persons: technology - Managers - Executives Specialists 4) Unbound except for measures referred to under Market Access Under its schedule of commitments in services, Complexia had the follow- ing entries for distribution services:700 Chapter 20. Trade in Services Limitations on Sector or Limitations on National Additional subsector Market Access Treatment Commitments Distribution 1) None 1) None ServiCes 2) None 2) None 3) Authorization from 3) Preference in access the Ministry of will be granted Finance required to foreign service 4) Unbound except suppliers/entities for measures that offer the best affecting the entry conditions in terms and temporary stay of the transfer of of the following technology categories of 4) Unbound except natural persons for as indicated in the training purposes: horizontal section - Managers Executives - Specialists Woll-Mart is one of the world's biggest retail companies. It is incorporated in Hubris and owned by the wealthy W011 family, all nationals of Hubris. Woll- Mart has long been trying to get a foothold in Complexia, which it thinks will be the next China in terms of GDP growth and expansion of middle-class con~ sumers. Woll-Mart is furious because of the enactment of the new Complexia measures. Woll-Mart is either unable or unwilling to comply with the related conditions and has convinced the government of Hubris to challenge the measures before a WTO panel. You work for the Ministry of Trade of Hubris and are asked to assess the chances of success of such a complaint under the GATS

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