Problems discussed for Unit IV- International Economic Law

Problem 1:
State Subhan is a member of WTO and IMF. It is a developing state. Due to some
unforeseen developments state Subhan suffered a lot of loss. Thus, Subhan took
loan from IMF. While giving loan IMF imposed few conditions on Subhan due to
which Subhan was not able to give concessions on tariffs as desired by WTO.
State Fuket, member of WTO started negotiations with State Subhan and
claimed concessions on tariff rates. State Fuket said that he is not the member
of IMF thus he is not concern with IMF conditions. But being a member of WTO,
he has right to get concessions on tariff. Negotiations got failed. Thus, both
reached to panel of DSB.
In the above background explain in detail following:
a. Is there any relation between WTO and IMF? Explain.
b. Explain IMF and WTO in the context of above given case.
c. Can IMF impose any conditions while giving loan to any state including
member state?
d. Whose decision will prevail if there is conflict between decisions of IMF or
WTO?
Explain with the help of legal provisions and decided cases.

Problem 2
Mr Davis was originally belonging to Sudan. Since last 25 years, he got settled in
France, an European Country. France is a member of European Union. Mr Davis
was involved in business wherein he was giving salaries to some of his
employees very less. Some of his employees were not getting salary at all as Mr
Davis was claiming that he gave loan to them. He was not giving holidays also to
his employees.
Mr Davis claimed that he was giving full salary to employees from France but
less salary only to employees from Sudan. Thus, he has not violated any law of
European Union as Sudan do not come under European Union. Further, Mr Davis
said, this case should be listed before African Union and not European Union.
A case was filed to the European Union against Mr Davis for these acts. Explain
in detail following in the background of above:
a. Can Mr Davis be punished under European Union Law as he is from
Sudan? Can European Union exercise its jurisdiction on Mr Davis Explain.
b. Explain the structure and scope of European Union.
c. Which International Organisation has mandate to look after labour
standards? What are its purposes, principles and scope? Explain if that
organisation has contributed towards payment of salary and giving of
weekly holiday irrespective of the nationality?
d. Can African Union take up this matter? Explain by explaining the African
Union, its structure and scope.
e. Is there any relation between regional organisations? What is your
opinion for future if any relation should be established amongst regional
organisations?
Explain with the help of legal provisions and decided cases.

(Problems are drafted by Prof Rashmi Salpekar, Faculty of IEL)