Cambridge University Press
0521822904 - The Law and Policy of the World Trade Organization - Text, Cases and Materials - by Peter Van den Bossche
Frontmatter/Prelims


The Law and Policy of the World Trade Organization

This is primarily a textbook for graduate and upper-level undergraduate students of law; however, practising lawyers and policy-makers who are looking for an introduction to WTO law will also find it invaluable. The book covers both the institutional and substantive law of the WTO. While the treatment of the law is quite detailed, the main aim of this textbook is to make clear the basic principles and underlying logic of WTO law and the world trading system. Each section contains questions and assignments, to allow students to assess their understanding and develop useful practical skills. At the end of each chapter, there is a helpful summary as well as an exercise on specific, true-to-life international trade problems.

PETER VAN DEN BOSSCHE is Professor of International Economic Law, Head of the Department of International and European Law and Director of Studies of the Magister Iuris Communis programme at Maastricht University, The Netherlands. He studied law at the University of Antwerp (Lic. jur.), the University of Michigan (LLM) and the European University Institute, Florence (Dr jur.). From 1997 to 2001, Peter Van den Bossche was Counsellor to the Appellate Body of the WTO, Geneva. In 2001 he served as Acting Director of the Appellate Body Secretariat.

The Law and Policy of the World Trade Organization

Text, Cases and Materials

Peter Van den Bossche

Maastricht University

CAMBRIDGE UNIVERSITY PRESS
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Published in the United States of America by Cambridge University Press, New York

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© Peter Van den Bossche 2005

This book is in copyright. Subject to statutory exception
and to the provisions of relevant collective licensing agreements,
no reproduction of any part may take place without
the written permission of Cambridge University Press.

First published 2005

Printed in the United Kingdom at the University Press, Cambridge

A catalogue record for this book is available from the British Library

Library of Congress Cataloguing in Publication data

Bossche, Peter van den.
    The law of the World Trade Organization / Peter van den Bossche.
       p.   cm.
    Includes bibliographical references and index.
    ISBN 0-521-82290-4 (hardback) – ISBN 0-521-52981-6 (paperback)
    1. World Trade Organization.  2. Foreign trade regulation.  3. Tariff – Law and
    legislation.  I. Title.
K4610.B67 2005
343′.087–dc22     2004061841

ISBN-13 978-0-521-82290-9 hardback

ISBN-10 0-521-82290-4 hardback

ISBN-13 978-0-521-52981-5 paperback

ISBN-10 0-521-52981-6 paperback

Cambridge University Press has no responsibility for
the persistence of accuracy of URLs for external or
third-party internet websites referred to in this book,
and does not guarantee that any content on such
websites is, or will remain, accurate or appropriate.

Contents

List of figures   x
List of tables   xii
Preface and acknowledgments   xiii
Table of cases   xvi
Table of agreements and decisions   xxvii
   1ECONOMIC GLOBALISATION AND THE LAW OF THE WTO   1
1.1.Introduction   1
1.2.Economic globalisation and international trade   3
1.2.1.  The emergence of the global economy   3
1.2.2.  Economic globalisation: a blessing or a curse?   11
1.2.3.  Trade liberalisation versus protectionism   19
1.2.4.  Globalisation and trade to the benefit of all?   29
1.3.International trade and the law of the WTO   35
1.3.1.  International rules for international trade   35
1.3.2.  Basic rules and principles of WTO law   39
1.4.Sources of WTO law   44
1.4.1.  The Marrakesh Agreement Establishing the World Trade Organization   45
1.4.2.  Other sources of WTO law   55
1.5.WTO law in context   60
1.5.1.  WTO law and international law   60
1.5.2.  WTO law and national law   65
1.6.Summary   72
1.7.Exercise: Globaphiles versus globaphobes   74
   2THE WORLD TRADE ORGANIZATION   76
2.1.Introduction   77
2.2.The origins of the WTO   78
2.2.1.  The General Agreement on Tariffs and Trade 1947   78
2.2.2.  Uruguay Round of Multilateral Trade Negotiations   83
2.3.Mandate of the WTO   86
2.3.1.  Objectives of the WTO   86
2.3.2.  Functions of the WTO   88
2.4.Membership of the WTO   103
2.4.1.  Current membership   103
2.4.2.  Accession   109
2.4.3.  Obligations of membership   115
2.4.4.  Withdrawal and expulsion   119
2.5.Institutional structure of the WTO   119
2.5.1.  Basic structure   120
2.5.2.  Ministerial Conference   122
2.5.3.  General Council, DSB and TPRB   124
2.5.4.  Specialised councils, committees and working parties   127
2.5.5.  Trade Negotiations Committee   130
2.5.6.  Political bodies lacking in the WTO structure   131
2.5.7.  Quasi-judicial and other non-political bodies   133
2.5.8.  WTO Secretariat   135
2.6.Decision-making in the WTO   141
2.6.1.  Normal procedure   141
2.6.2.  Special procedures   144
2.6.3.  WTO decision-making in practice   148
2.6.4.  Participation of developing-country Members   151
2.6.5.  Involvement of NGOs   154
2.6.6.  Form and legal basis of WTO decisions   162
2.7.Other issues   164
2.7.1.  Status of the WTO   164
2.7.2.  The WTO budget   164
2.8.Summary   166
2.9.Exercise: To join or not to join?   170
   3WTO DISPUTE SETTLEMENT   172
3.1.Introduction   173
3.2.The origins of the WTO dispute settlement system   174
3.2.1.  Settlement of disputes between States   175
3.2.2.  Dispute settlement under the GATT 1947   176
3.2.3.  Uruguay Round negotiations and the Dispute Settlement Understanding   180
3.3.Principles of WTO dispute settlement   182
3.3.1.  Object and purpose of the WTO dispute settlement system   182
3.3.2.  Methods of WTO dispute settlement   186
3.3.3.  Jurisdiction of the WTO dispute settlement system   187
3.3.4.  Access to the WTO dispute settlement system   190
3.3.5.  The WTO dispute settlement process   203
3.3.6.  Rules of interpretation and burden of proof   206
3.3.7.  Confidentiality and Rules of Conduct   212
3.3.8.  Remedies for breach of WTO law   217
3.3.9.  Special rules and assistance for developing-country Members   225
3.4.Institutions of WTO dispute settlement   228
3.4.1.  The Dispute Settlement Body   228
3.4.2.  WTO dispute settlement panels   231
3.4.3.  The Appellate Body   244
3.4.4.  Other bodies and persons involved in WTO dispute settlement   255
3.5.WTO dispute settlement proceedings   255
3.5.1.  Consultations   255
3.5.2.  Panel proceedings   259
3.5.3.  Appellate review   270
3.5.4.  Implementation and enforcement   278
3.6.WTO dispute settlement practice to date   284
3.6.1.  Disputes   284
3.6.2.  Reports and awards   287
3.7.Challenges and proposals for reform   289
3.7.1.  From DSU review to DSU negotiations   289
3.7.2.  Proposals for DSU reform   292
3.7.3.  Main challenge to the WTO dispute settlement system   298
3.8.Summary   299
3.9.Exercise: Newland seeks justice   304
   4PRINCIPLES OF NON-DISCRIMINATION   307
4.1.Introduction   308
4.2.Most-favoured-nation treatment under the GATT 1994   309
4.2.1.  Nature of the MFN treatment obligation of Article I:1 of the GATT 1994   310
4.2.2.  Consistency with Article I:1 of the GATT 1994   312
4.3.Most-favoured-nation treatment under the GATS   318
4.3.1.  Nature of the MFN treatment obligation of Article II:1 of the GATS   318
4.3.2.  Consistency with Article II:1 of the GATS   320
4.3.3.  Exemptions from the MFN treatment obligation under Article II:1 of the GATS   325
4.4.National treatment under the GATT 1994   326
4.4.1.  Nature of the national treatment obligation of Article III of the GATT 1994   327
4.4.2.  Consistency with Article III:2, first sentence, of the GATT 1994   331
4.4.3.  Consistency with Article III:2, second sentence, of the GATT 1994   340
4.4.4.  Consistency with the national treatment obligation of Article III:4 of the GATT 1994   349
4.5.National treatment under the GATS   365
4.5.1.  Nature of the national treatment obligation of Article XVII of the GATS   365
4.5.2.  Consistency with Article XVII of the GATS   367
4.6.Summary   369
4.7.Exercise: Beer in Newland   372
   5RULES ON MARKET ACCESS   375
5.1.Introduction   376
5.2.Tariff barriers to trade in goods   377
5.2.1.  Customs duties or tariffs   377
5.2.2.  Negotiations on tariff reductions   389
5.2.3.  Tariff concessions and Schedules of Concessions   398
5.2.4.  Protection of tariff concessions   419
5.2.5.  Modification or withdrawal of tariff concessions   423
5.2.6.  Imposition of customs duties   425
5.2.7.  Other duties and charges   436
5.3.Non-tariff barriers to trade in goods   441
5.3.1.  Quantitative restrictions   441
5.3.2.  Rules on quantitative restrictions   444
5.3.3.  Administration of quantitative restrictions   450
5.3.4.  Other non-tariff barriers   457
5.4.Barriers to trade in services   480
5.4.1.  Market access barriers to trade in services   482
5.4.2.  Other barriers to trade in services   495
5.5.Summary   502
5.6.Exercise: Carlie® goes to Europe   510
   6RULES ON UNFAIR TRADE   512
6.1.Introduction   512
6.2.Dumping and anti-dumping measures   513
6.2.1.  Basic elements of WTO law on dumping   514
6.2.2.  Determination of dumping   518
6.2.3.  Determination of injury   526
6.2.4.  Demonstration of a causal link   533
6.2.5.  Anti-dumping investigation   536
6.2.6.  Anti-dumping measures   541
6.2.7.  Special and differential treatment for developing-country Members   549
6.3.Subsidies and countervailing measures   551
6.3.1.  Basic elements of WTO law on subsidies and subsidised trade   552
6.3.2.  Determination of subsidisation   555
6.3.3.  Prohibited subsidies   561
6.3.4.  Actionable subsidies   567
6.3.5.  Countervailing measures   574
6.3.6.  Agricultural subsidies   583
6.3.7.  Special and differential treatment for developing-country Members   586
6.4.Summary   588
6.5.Exercise: Dirty play, but by whom?   594
   7TRADE LIBERALISATION VERSUS OTHER SOCIETAL VALUES AND INTERESTS   596
7.1.Introduction   597
7.2.General exceptions under the GATT 1994   598
7.2.1.  The nature and function of Article XX of the GATT 1994   599
7.2.2.  The two-tier test under Article XX of the GATT 1994   601
7.2.3.  Specific exceptions under Article XX of the GATT 1994   602
7.2.4.  The chapeau of Article XX of the GATT 1994   615
7.2.5.  Scope for Members to protect other societal values   623
7.3.General exceptions under the GATS   624
7.3.1.  Specific exceptions under Article XIV of the GATS   625
7.3.2.  The chapeau of Article XIV of the GATS   627
7.4.Security exceptions   628
7.4.1.  Article XXI of the GATT 1994   628
7.4.2.  Article XIV bis of the GATS   632
7.5.Economic emergency exceptions   633
7.5.1.  Article XIX of the GATT 1994 and the Agreement on Safeguards   635
7.5.2.  Characteristics of safeguard measures   636
7.5.3.  Requirements for the use of safeguard measures   641
7.5.4.  Domestic procedures   649
7.6.Regional integration exceptions   650
7.6.1.  Article XXIV of the GATT 1994   652
7.6.2.  Article V of the GATS   662
7.7.Balance-of-payments exceptions   667
7.7.1.  Articles XII and XVIII:B of the GATT 1994   667
7.7.2.  Article XII of the GATS   674
7.8.Economic development exceptions   676
7.8.1.  Infant-industry-protection exception   677
7.8.2.  Generalised System of Preferences exception   679
7.9.Summary   683
7.10.Exercise: Glass bottles and tetra-pack containers   689
   8CHALLENGES FOR FUTURE   692
8.1.Introduction   692
8.2.Integration of developing countries into the WTO System   694
8.2.1.  Problems in implementing current WTO agreements   695
8.2.2.  Special and differential treatment   697
8.2.3.  Trade-related technical assistance and capacity-building   700
8.3.Extending the scope of WTO law   702
8.3.1.  The ‘Singapore issues’ and the Doha Ministerial Declaration    703
8.3.2.  Future negotiations on the Singapore issues?   704
8.4.Conclusion   706
Index   708

Figures

2.1Decision of 14 November 2001 of the Ministerial Conference on a Waiver for the ACP–EC Partnership Agreement117
2.2WTO organisation chart121
2.3Programme of meetings in March 2003122
2.4Excerpt from the minutes of the meeting of the General Council of 21 October 2003125
2.5WTO Secretariat organisation chart140
2.6Trend in NGO representation at Ministerial Conference sessions159
3.1Dispute resolution methods compared175
3.2Success of consultations: totals 1995–2003184
3.3Flowchart of the WTO dispute settlement process205
3.4Agenda of the DSB meeting of 18 March 2003230
3.5Rate of appeal: total 1995–200250
3.6Results of appellate review: total 1995–2003253
3.7Requests for consultations: trend 1995–2003285
3.8Complainants per income category: trend 1995–2003285
3.9Complainants per income category: totals 1995–2003286
3.10Respondents per income category: totals 1995–2003287
3.11WTO agreements at issue: totals 1995–2003288
3.12Number of reports: trend 1995–2003288
4.1Excerpt from the Schedule of Specific Commitments of the European Communities and their Member States366
5.1Excerpt from Chapter 18 of the EC Common Customs Tariff (cocoa and cocoa preparations)380
5.2Excerpt from Chapter 78 of the EC Common Customs Tariff (vehicles …)381
5.3Excerpt from Chapter 18 of the Harmonized Tariff Schedule of the United States (cocoa and cocoa preparations)383
5.4Excerpt from Chapter 87 of the Harmonized Tariff Schedule of the United States (vehicles …)384
5.5Excerpt from Chapter 18 of the First Schedule to the Customs Tariff Act, 1975, of India (cocoa and cocoa preparations)385
5.6Excerpt from Chapter 87 of the First Schedule to the Customs Tariff Act, 1975, of India (vehicles …)386

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