Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany 1

WTO Law - Exceptions

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany 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 GATSWaivers (IX.3, 4 WTOA, XXV GATT)Development Exceptions

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany 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)

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany 4

The „Chapeau“ of art. XX

Limitation by the „chapeau“no arbitrary or unjustifiable discrimination between countries where the same conditions prevailno disguised restriction on international trade

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany 5

Sequence of reasoning

Legitimate goalNecessity (a, b, d)

Weighing and balancing: relative importanceReasonably available (not: indispensable)

Relation (c, e, g) Primarily aimed at

Not: merely incidentally or inadvertentlyNot: aims and effects

Chapeau as corrective

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany 6

Art. XXI GATT / XIV bis GATS Exceptions

Disclosure of information against national essential security interestsActions necessary for the protection of essential security interests

nuclear matterstraffic in weaponry and dual-use productstime of war or national emergencies

Actions mandated by the UN Security Council under chapter VII of the UN CharterJusticiability?

„Helms-Burton-Case“ (WT/DS 38)

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany 7

Balance of Paments Safeguards (XII GATT)

Export restrictionsAlternative: Help from the International Monetary Fund

Limits: Art. XIV.1 a

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany 8

Regional Trade Agreements (RTA) in GATTAdvantages / Disturbance ?

Trade deflection but:Trade creation?

Customs Unions (XXIV. 8 a)No internal customs for all goods in free circulation

For substantially all the tradeSingle external customs order

For substantially all the trade

Free Trade Areas (XXIV.8 b)No internal customs for goods originating in the FTANational external customs law

Only necessary derogations from WTO rules (Turkey textiles)Compensation Scheme (XXIV.5)

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany 9

Regional Trade Agreements – V GATS

Trade Liberalized Areas (V GATS)Substantial sectoral coverageAbsence or elimination of substantially all discriminationMaintaining the overall level of barriers to trade in services (compensation if necessary)Necessity

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany 10

Waiver Art. IX WTOA

In exceptional circumstancres not elsewhere provided for in this AgreementWith the consent of two thirds in the councilFor 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“

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany 11

Understanding Concering Waivers

Clear and detailed application: the problem and the remedies consideredEnd of all the old waivers under GATT 1947 at least two years after the entry into force of the WTOARight to invoke the DS procedure if the obligations of the waiver decision are not fulfilled

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany 12

Development Exceptions

Art. XVIII GATTInfant Industry protection

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”Graduation ClauseConditionality, but non-discrimination! (EC-GSP)

Doha Ministerial Declaration confirms Status: Who is a DC / a LDC