As globalization enhances and capital and labour continue to find less barriers for its movement, trade relationships strengthens. With this strengthening, it comes uninvited disputes as markets and nations try to protect their domestic businesses and seek maximum profit from international markets through trade tariff imposition. Since there is always an imbalance in the commodities exchanged between nations, their economic status and financial health, there are disputes that are inevitable and shall continue to force the World Trade Organization (WTO) to continue to act as a neutral party for resolving such conflicts.
This paper elaborately discusses the dispute between Thailand and the European Community (EC) in regards to the tariff imposition by EC on Thailand by calling an immediate reaction from Thailand to reverse the tariff and seek negotiations under the WTO guidelines.
The EC entered into the Cotonou Agreement with the ACP countries, which are a comprehensive multilateral agreement between the European Community and the ACP nations forming a large portion of Africa. Under this agreement, there was tariff reduction or elimination of import and export of many food articles, of which one was tuna products. Thus, all tuna products exported to the EC enjoyed zero tariff imposition helping the ACP farmers to become competitive on a global scale and compete with other tuna producers mainly Thailand.