Law Commons^™

Trade Multilateralism And U.S. National Security: The Making Of The Gatt Security Exceptions, Mona Pinchis-Paulsen

Michigan Journal of International Law

Today, there are an unprecedented number of disputes at the World Trade Organization (“WTO”) involving national security. The dramatic rise in trade disputes involving national security has resuscitated debate over the degree of discretion afforded to WTO Members as to when and how to invoke Article XXI, the Security Exception, of the General Agreement on Tariffs and Trade (“GATT”), with binding effect. The goal of this article is to shed light on contemporary questions and concerns involving national security and international trade, particularly questions involving the appropriate invocation of Article XXI GATT, through careful attention to the article’s historical context. …

Brexit And The Wto: What Happens Next, Andrea Xu

Michigan Journal of Environmental & Administrative Law

In the summer of 2016, the United Kingdom (the “UK”) announced its decision to leave the European Union (the “EU”). This decision, more commonly known as “Brexit,” subsequently stirred British politics, which included Theresa May replacing David Cameron as Prime Minister. Brexit created a unique situation in European and global politics, and instigated a discussion among politicians, academics, economists, and the likes about how the UK will leave the EU and Brexit’s implications in the UK, Europe, and the world as a whole.

This Note analyzes one specific aspect of Brexit: the administrative procedures the UK must undergo to establish …

Gsp And Development: Increasing The Effectiveness Of Nonreciprocal Preferences, Matthew G. Snyder

Michigan Journal of International Law

The intellectual foundations of nonreciprocal preferences were first laid out in the 1960s, as several scholars noted developing countries' increasing reliance on highly volatile, low-value-added exports like agricultural and mineral commodities. The Generalized System of Preferences (GSP), which became the mechanism for implementing nonreciprocal preferential market access, was developed in this context. GSP was envisioned as part of a larger development strategy that included import-substitution policies, infant industry protection, and preferential access to developed countries' markets. As GSP granted preferential access over World Trade Organization (WTO) most favored nation (MFN) rates, development economists anticipated that it would provide developing countries' …

Are Eu Trade Sanctions On Burma Compatible With Wto Law?, Robert L. Howse, Jared M. Genser

Michigan Journal of International Law

This Article will explore the European Union's approach to Burma. The European Union, until recently, has implemented quite limited trade sanctions against the Burmese junta. According to the most recent figures, E.U. countries still import €306 million ($454 million) of commodities and products, ninety-five percent of which are textiles, timber, gems, and precious metals. However, the Common Position of November 19, 2007, strengthens considerably E.U. measures against the Burmese regime and contains a ban on the importation of these goods from Burma. Further, the Common Position requires E.U. countries to prohibit intentional and knowing "participation" in activities that "directly or …

A Gambling Paradox: Why An Origin-Neutral 'Zero-Quota' Is Not A Quota Under Gats Article Xvi, Donald H. Regan

Articles

In US-Gambling, the Appellate Body held that an origin-neutral prohibition on remote gambling (which is how they mostly viewed the United States law) was "in effect" a "zero-quota", and that such a "zero-quota" violated GATS Article XVI:2. That holding has been widely criticized, especially for what critics refer to as the Appellate Body's "effects test". This article argues that the Appellate Body's "in effect" analysis is not an "effects test" and is not the real problem. The real mistake is regarding a so-called "zero-quota" as a quota under Article XVI. That is inconsistent with the ordinary meaning of the word …

The Meaning Of 'Necessary' In Gatt Article Xx And Gats Article Xiv: The Myth Of Cost-Benefit Balancing, Donald H. Regan

Articles

Conventional wisdom tells us that in Korea–Beef, the Appellate Body interpreted the word ‘necessary’ in GATT Article XX to require a cost–benefit balancing test. The Appellate Body is supposed to have applied this test also in EC–Asbestos, US–Gambling (involving GATS Article XIV), and Dominican Republic–Cigarettes. In this article I demonstrate, by detailed analysis of the opinions, that the Appellate Body has never engaged in such balancing. They have stated the balancing test, but in every case they have also stated the principle that Members get to choose their own level of protection, which is logically inconsistent with judicial review by …

Transparency: An Analysis Of An Evolving Fundamental Principle In International Economic Law, Carl-Sebastian Zoellner

Michigan Journal of International Law

This Note will first sketch the theoretical underpinnings of transparency in an interdisciplinary overview of its possible meanings and advantages in the present context. It will then survey documents and instruments of international economic law in which language embracing the transparency principle is already present. The Note's main section proceeds to ask whether, in the actual application of those agreements, the transparency principle has had any notable impact on the interpretation of state obligations. Finally, in addressing transparency's future role in international economic law, this Note briefly discusses additional problems which might be resolved through a transparency-based approach.

An Analysis Of Potential Conflicts Between The Stockholm Convention And Its Parties' Wto Obligations, D. Dean Batchelder

Michigan Journal of International Law

This Comment examines the compatibility of the Stockholm Convention on Persistent Organic Pollutants with parties' WTO obligations under the GATT Agreement. The Stockholm Convention represents a broad-based attempt to regulate persistent organic pollutants (POPs), some of the most damaging chemicals to the environment and human health. The commitments that parties to the Stockholm Convention have undertaken to control POPs may implicate international trade commitments. Hopefully the discussion in this Comment may also be relevant to other multilateral environmental agreements (MEAs), especially those involving trade measures.

Regulatory Purpose And 'Like Products' In Article Iii:4 Of The Gatt (With Additional Remarks On Article Iii:2), Donald H. Regan

Book Chapters

In EC-Asbestos the Appellate Body has told us that (l) in interpreting Article III:4 of the GATT, we must take explicit account of the policy in Article III: l that measures should not be applied "so as to afford protection to domestic production" [hereafter just "so as to afford protection"]. In Chile- Alcohol the Appellate Body has told us that (2) in deciding whether a measure is applied "so as to afford protection," we must consider "the purposes or objectives of a Member's legislature and government as a whole"- in other words, the regulatory purpose of the measure. Chile- Alcohol …

The Transformation Of World Trade, Joost Pauwelyn

Michigan Law Review

This Article contests the traditional view of the evolution of the world trade system. Rather than a unidirectional process of legalization focused exclusively on the system's normative structure, Part I of the Article, "The Explosion of the GATT Club," recounts the transformation from GATT to WTO as a bidirectional interaction between law and politics; in particular, between the system's legal-normative structure and its political, decision making branch Part II of this Article, "The Threat of a WTO Fortress," challenges the view that a choice must be made between politics and law or, put differently, between, on the one hand, democratic …

Juridical Substance Or Myth Over Balance-Of-Payment: Developing Countries And The Role Of The International Monetary Fund In The World Trade Organization, Ugochukwu Chima Ukpabi

Michigan Journal of International Law

This Note attempts to chart the division of labor in respect of balance-of-payment between the Fund and the WTO. More importantly, it reflects on how the intertwined relationship between the Fund and the WTO over balance-of-payment might impact on developing countries in the unfolding architecture of trade.

Wto And Gmos: Analyzing The European Community's Recent Regulations Covering The Labeling Of Genetically Modified Organisms, Brian Schwartz

Michigan Journal of International Law

This Note explores the compatibility of the EC's GMO regulations within the framework of the Agreement on the Application of Sanitary and Phytosanitary Measures ("SPS Agreement"), the Agreement on Technical Barriers to Trade ("TBT Agreement"), and the General Agreement on Tariffs and Trade 1994 ("GATT 1994" or "GAT"), all integral parts of the WTO Agreement. Part II presents arguments for or against the use of GM-products. Part III explores the concept of ecolabeling by analyzing the general goals of such programs, including the economic theory behind green consumerism and the characteristics necessary for effective schemes. Part IV describes the core …

The New Codex Alimentarius Commission Standards For Food Created With Modern Biotechnology: Implications For The Ec Gmo Framework's Compliance With The Sps Agreement, Aaron A. Ostrovsky

Michigan Journal of International Law

This Note makes two assertions. First, despite the fact that the Codex guidelines do not specifically invoke the Precautionary Principle in name, it can indeed be read into the guidelines in the amount of deference given to states in how they assess risk. This in turn means that the E.C.'s Deliberate Release Directive should be enjoy a presumption of compliance with both the SPS Agreement and the GATT. The second assertion is that even if the adjudicating body of the WTO finds that the Deliberate Release Directive, in relying on the Precautionary Principle, prescribes a higher level of protection than …

Further Thoughts On The Role Of Regulatory Purpose Under Article Iii Of The General Agreement On Tariffs And Trade: A Tribute To Bob Hudec, Donald H. Regan

Articles

My topic in this article is the role of regulatory purpose under Article III of the GATT, and I regard Bob [Hudec] as the patron saint of efforts to establish the relevance of purpose. His famous "Requiem for an 'Aims and Effects' Test" may have been called a requiem, but it was reluctant and sceptical. Bob thought dispute settlement tribunals ought to consider the regulator's purpose, and he thought they would do so, whatever they said. As decisions on Article III accumulate, we are in the process of learning that he was right on both counts.

(How) Should Trade Agreements Deal With Income Tax Issues?, Joel Slemrod, Reuven S. Avi-Yonah

Articles

What is the relationship between the international tax regime, as embodied in bilateral international tax treaties, and multilateral free trade agreements like the General Agreement on Tariffs and Trade (GATr)?' Are their fundamental goals consistent or inconsistent? If they are inconsistent, should the tax treaties or the GATT be changed to remedy the inconsistency? If they are consistent, should the scope of either be expanded to include the other?

Regulatory Purpose And 'Like Products' In Article Iii:4 Of The Gatt (With Additional Remarks On Article Ii:2), Donald H. Regan

Articles

In European Communities-Measures Affecting Asbestos and Asbestos-Containing Products (EC-Asbestos) the Appellate Body has told us that (1) in interpreting Article 111:4 of the General Agreement on Tariffs and Trade (GATT), we must take explicit account of the policy in Article 111:1 that measures should not be applied "so as to afford protection to domestic production" [hereafter just "so as to afford protection"]. In Chile--Taxes on Alcoholic Beverages (Chile--Alcohol) the Appellate Body has told us that (2) in deciding whether a measure is applied "so as to afford protection", we must consider "the purposes or objectives of a Member's legislature and …

Democracy, Science, And Free Trade: Risk Regulation On Trial At The World Trade Organization, Robert Howse

Michigan Law Review

Among the most common critiques of globalization is that it increasingly constrains the ability of democratic communities to make unfettered choices about policies that affect the fundamental welfare of their citizens, including those of health and safety, the environment, and consumer protection. Traditionally, free trade rules were about constraining border measures such as tariffs and quantitative restrictions on imports. Increasingly, however, such rules include requirements and constraints addressed directly to domestic regulation. For example, a country's policies with respect to intellectual property rights or its regulatory approach to network industries, such as telecommunications, may now be fundamentally shaped by rules …

Women's Rights And The Public Morals Exception Of Gatt Article 20, Liane M. Jarvis

Michigan Journal of International Law

The public morals exception in Article XX of the General Agreement on Tariffs and Trade (GATT) could and should be interpreted in accordance with evolving human rights law on women's rights. This clause provides an exception to the general rule that members of the World Trade Organization (WTO) cannot take measures against other Members that would restrict trade. Under Article XX, WTO members may restrict trade for a variety of social reasons, including protecting the environment, preventing prison labor, and otherwise promoting "public morals.” This Note will argue in particular that a nation should be allowed to invoke the public …

The Product/Process Distinction - An Illusory Basis For Disciplining 'Unilateralism' In Trade Policy, Robert L. Howse, Donald H. Regan

Articles

It has become conventional wisdom that internal regulations that distinguish between products on the basis of their production method are GATT-illegal, where applied to restrict imports (although possibly some such measures might be justified as 'exceptions' under Article XX). The aim of this article is to challenge this conventional wisdom, both from a jurisprudential and a policy perspective. First, we argue there is no real support in the text and jurisprudence of the GATT for the product/process distinction. The notion developed in the unadopted Tuna/Dolphin cases that processed-based measures are somehow excluded from the coverage of Article III (National Treatment) …

The Desirability Of Agreeing To Disagree: The Wto, Trips, International Ipr Exhaustion And A Few Other Things, Vincent Chiappetta

Michigan Journal of International Law

This Article proposes a procedural and substantive approach specifically designed to achieve this result. Concerning process, interim national and regional decisionmaking and the multilateral debate must expressly broaden and clarify the values and interests at stake. Three basic operational principles advance this objective. First, comparisons based on IPR labels (patent, copyright, and the like) confuse rather than illuminate. Instead, focus must be on the actual underlying policy justifications and objectives. Second, the full range of implicated justifications (economic and otherwise), including those outside the decision-makers' own norms, must be expressly identified and considered. Finally, any position taken or decision reached …

Reflections On The Mjil Special Issue, John H. Jackson

Michigan Journal of International Law

A reflection on this special issue of Michigan Journal of International Law and its subject by Professor John H. Jackson.

The Long Road Ahead: Dispute Settlement In The Gatt/Wto, Dukgeun Ahn

Michigan Journal of International Law

Review of International Trade Law and the GATT/WTO Dispute Settlement System by Ernst-Ulrich Petersmann

Environmental Disputes In The Gatt/Wto: Before And After Us-Shrimp Case, Dukgeun Ahn

Michigan Journal of International Law

This paper aims to present the legal analysis of the rulings by the Panel and, with more emphasis, the Appellate Body in US-Shrimp. Section I briefly reviews general dispute settlement mechanisms provided in international environmental conventions. Section II summarizes the practices regarding Article XX of the GATT in the GATTIWTO dispute settlement systems prior to US-Shrimp. Section III presents the factual background of US-Shrimp case and the legal analysis of several procedural and substantive issues specifically addressed in the Appellate Body report. Section IV examines the remaining issues to be addressed in trade disputes with environmental implication after …

The Role Of National Courts In International Trade Relations, Meinhard Hilf

Michigan Journal of International Law

Part I of this article identifies and analyzes some modern trends in judicial review in the area of international relations. Section Part II then examines and briefly discusses the existence of judicial review for both national and international levels of protection and the possibilities for linking the two. A major part, Part III, is devoted to the specific role of national courts within the WTO system. Finally, Part IV draws conclusions and suggests some means for improving the judicial review offered by national courts and for linking them to the interstate dispute settlement on the international level.

Of Substantial Interest: Third Parties Under Gatt, Chi Carmody

Michigan Journal of International Law

This article's examination of the status of third parties under GATT is important for several reasons, one of which is the proliferation of third party participation as demonstrated by Bananas III. A second reason for its importance is that there has been little written about third parties under GATT. This neglect stands in sharp contrast to ample literature on the related subject of greater public participation in the WTO. The oversight could be a function of GATT dispute resolution, which did not always enjoy the level of public attention it garners today. Until recently the GATT system handled no …

Securing The Peace Dividend In The Middle East: Amending Gatt Article Xxiv To Allow Sectoral Preferences In Free Trade Areas, David R. Karasik

Michigan Journal of International Law

How should Middle East nations structure their future economic relationships to secure their peaceful reconciliation while simultaneously fulfilling their WTO obligations? This note suggests two solutions to this quandary. First, the newly emerging bloc of peace-declaring nations in the Middle East should consider establishing a regional free trade area. However, instead of reducing the tariffs of "substantially all" of the region's products as would normally be required by Article XXIV of the General Agreement on Tariffs and Trade (GATT) 9-the authoritative provision regulating free trade areas-this note argues that a Middle East free trade area should reduce trade barriers only …

Trade Policy Harmonization: Too Much Of A Good Thing?, Alexander W. Sierck

Michigan Journal of International Law

Review of Fair Trade and Harmonization: Prerequisites for Free Trade? by Jagdish N. Bhagwati & Robert E. Hudec

Trade And The Environment: Equilibrium Or Imbalance?, Douglas J. Caldwell, David A. Wirth

Michigan Journal of International Law

Review of Greening the GATT: Trade, Environment, and the Future by Daniel C. Esty; Freer Trade, Protected Environment: Balancing Trade Liberalization and Environmental Interests by C.Ford Runge, François Ortalo-Magné, and Philip Vande Kamp; Trade and the Environment: The Search for Balance (James Cameron, Paul Demaret & Damien Geradin, eds.); and Trading Up: Consumer and Environmental Regulation in a Global Economy by David Vogel