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WTO Law - Exceptions

WTO Law - Exceptions. Overview. General policy concerns (XX GATT / XIV GATS) Security exceptions (XXI GATT / XIV bis GATS) BOP Safeguards (XII GATT) Regional Integration(XXIV GATT / V GATS Waivers (IX.3, 4 WTOA, XXV GATT) Development Exceptions. Art. XX Exceptions.

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WTO Law - Exceptions

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  1. WTO Law - Exceptions

  2. Overview • General policy concerns (XX GATT / XIV GATS) • Security exceptions (XXI GATT / XIV bis GATS) • BOP Safeguards (XII GATT) • Regional Integration(XXIV GATT / V GATS • Waivers (IX.3, 4 WTOA, XXV GATT) • Development Exceptions

  3. Art. XX Exceptions • Public Reason for protection, e.g. • „public morals“ (a) • human, animal or plant life or health (b) • Compliance with laws and regulations (d) • prison labor (e) • national heritage (f) • exhaustible national resources (g)

  4. The „Chapeau“ of art. XX • Limitation by the „chapeau“ • no arbitrary or unjustifiable discrimination between countries where the same conditions prevail • no disguised restriction on international trade

  5. Sequence of reasoning • Legitimate goal • Necessity (a, b, d) • Weighing and balancing: relative importance • Reasonably available (not: indispensable) • Relation (c, e, g) • Primarily aimed at • Not: merely incidentally or inadvertently • Not: aims and effects • Chapeau as corrective

  6. Art. XXI GATT / XIV bis GATS Exceptions • Disclosure of information against national essential security interests • Actions necessary for the protection of essential security interests • nuclear matters • traffic in weaponry and dual-use products • time of war or national emergencies • Actions mandated by the UN Security Council under chapter VII of the UN Charter • Justiciability? • „Helms-Burton-Case“ (WT/DS 38)

  7. Balance ofPamentsSafeguards (XII GATT) • Export restrictions • Alternative: Help from the International Monetary Fund • Limits: Art. XIV.1 a

  8. Regional Trade Agreements (RTA) in GATT • Advantages / Disturbance ? • Trade deflection but: • Trade creation? • Customs Unions (XXIV. 8 a) • Nointernalcustomsfor all goods in freecirculation • Forsubstantially all thetrade • Single externalcustoms order • Forsubstantially all thetrade • Free Trade Areas (XXIV.8 b) • Nointernalcustomsforgoodsoriginating in the FTA • National externalcustomslaw • Onlynecessaryderogationsfrom WTO rules (Turkey textiles) • CompensationScheme (XXIV.5)

  9. Regional Trade Agreements – V GATS • Trade Liberalized Areas (V GATS) • Substantial sectoral coverage • Absence or elimination of substantially all discrimination • Maintaining the overall level of barriers to trade in services (compensation if necessary) • Necessity

  10. Waiver Art. IX WTOA • In exceptional circumstancres not elsewhere provided for in this Agreement • With the consent of two thirds in the council • For a limited period, renewable upon scrutiny (≠ Art. XXV GATT) • See the „Understanding in Respect of Waivers of Obligations under the General Agreement on Tariffs and Trade 1994“

  11. Understanding ConceringWaivers • Clear and detailed application: the problem and the remedies considered • End of all the old waivers under GATT 1947 at least two years after the entry into force of the WTOA • Right to invoke the DS procedure if the obligations of the waiver decision are not fulfilled

  12. Development Exceptions • Art. XVIII GATT • Infant Industryprotection • Part IV GATT (Art. XXXVI to XXXVIII GATT) • 1979 Decision on “Differential and More Favourable Treatment, Reciprocity and Full Participation of Developing Countries” (the “Enabling Clause”) • Basis of the General Scheme of Preferences (GSP): „differential and more favourable treatment to developing countries” • GraduationClause • Conditionality, but non-discrimination! (EC-GSP) • Doha Ministerial Declarationconfirms • Status: Who is a DC / a LDC

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