A detailed examination of the GATT regime for international trade, discussing the negotiating record, policy background, economic rationale, and case law.
The General Agreement on Tariffs and Trade (GATT) was created alongside other towering achievements of the post-World War II era, including the United Nations, the World Bank, and the International Monetary Fund. GATT, the first successful agreement to generate multilateral trade liberalization, became the principal institution to administer international trade for the next six decades. In this book, Petros Mavoidis offers detailed examination of the GATT regime for international trade, discussing the negotiating record, policy background, economic rationale, and case law.
Mavroidis offers a substantive first chapter that provides a detailed historical background to GATT that stretches from the 1927 World Economic Conference through Bretton Woods and the Atlantic Charter. Each of the following chapters examines the disciplines agreed to, their negotiating record, their economic rationale, and subsequent practice. Mavroidis focuses on cases that have influenced the prevailing understanding of the norm, as well as on literature that has contributed to its interpretation, and the final outcome. In particular, he examines quantitative restrictions and tariffs; the most favored nation clause (MFN), the cornerstone of the GATT edifice; preferential trade agreements and special treatment for products originating in developing countries; domestic instruments; and exceptions to the obligations assumed under GATT. This book's companion volume examines World Trade Organization (WTO) agreements regulating trade in goods.
Author(s): Petros C. Mavroidis
Edition: 1
Publisher: MIT Press
Year: 2015
Language: English
Pages: 613
Tags: Business & Economics, Commercial, International, Economics, Law, International Trade
Contents
Preface
Introduction
1 From GATT to the WTO
1.1 Establishing a Multilateral Trade Order
1.1.1 From Drudgery to Excitement
1.1.2 Attempts to Liberalize Trade at the Multilateral Level
1.1.3 Bretton Woods and Trade
1.1.4 Follow-up to Bretton Woods
1.1.5 Onto the World Scene
1.1.6 The Negotiation of GATT
1.1.7 Entry into Force
1.1.8 Property Rights on GATT
1.1.9 The People Who Made GATT Happen
1.2 Why GATT?
1.2.1 What Did Negotiators Have in Mind?
1.2.2 Economic Theory
1.2.3 Economics Meets the Negotiating Record
1.3 The (Trans-)Formative Years
1.3.1 Flexibility Required
1.3.2 The GATT Recipe for Trade Liberalization
1.3.3 Becoming an Institution
1.3.4 The GATT Rounds of Trade Liberalization
1.3.5 The Transformations of GATT
1.3.6 A Brief Appraisal of the GATT Record
1.3.7 A Few Good Men
1.3.8 A Gentlemen’s Club
1.4 Regulation of Trade in Goods in the WTO Era
1.4.1 The “Old” and the “New” GATT
1.4.2 The Relationship between GATT and the Other Annex 1A Agreements
1.4.3 The Plurilateral Agreements
1.4.4 Single Undertaking Versus “Clubs”
1.4.5 The Protocols of Accession
1.4.6 The WTO Organs Administering Agreements on Trade in Goods
2 Quantitative Restrictions
2.1 The Legal Discipline and Its Rationale
2.1.1 The Legal Discipline
2.1.2 The Rationale for the Legal Discipline
2.1.3 Discussion
2.2 Coverage of the Legal Discipline
2.2.1 General Elimination of Quantitative Restrictions
2.2.2 Quotas
2.2.3 Import and Export Licenses
2.2.4 Other Measures
2.2.5 Measures Not Covered
2.2.6 Attributing QRs to WTO Members
2.2.7 Standard of Review
2.2.8 The Relationship with Article III of GATT
2.2.9 The Relationship with Article VIII of GATT
2.3 Exceptions
2.3.1 Critical Shortages
2.3.2 Standards for Classification, Grading, or Marketing of Commodities
2.3.3 QRs Necessary for Enforcing Governmental Measures
2.3.4 Balance of Payments (Articles XII and XVIII of GATT)
2.3.5 Exchange Restrictions
2.3.6 Infant Industry Protection
2.3.7 General Exceptions (Article XX of GATT)
2.3.8 National Security (Article XXI of GATT)
2.3.9 Safeguards (Article XIX of GATT)
2.3.10 Can QRs Be Permissible in Order to Avoid Dumping?
2.4 Applying QRs
2.4.1 Nondiscrimination, in Principle
2.4.2 Nondiscrimination, in Practice
2.4.3 Discriminatory QRs
2.4.4 Import Licensing in the WTO Era
2.5 Institutional Issues
2.5.1 The Committee on Market Access
2.5.2 Transparency
2.6 Concluding Remarks
3 Tariffs
3.1 The Legal Discipline and Its Rationale
3.1.1 The Legal Discipline
3.1.2 The Rationale for the Legal Discipline
3.1.3 Discussion
3.2 Expressing Goods in a Common Language
3.2.1 The Harmonized System
3.3 The Types of Duties Bound
3.3.1 Reciprocity
3.3.2 OCDs and ODCs
3.3.3 What Is an Ordinary Customs Duty?
3.3.4 What Is an Other Duty or Charge?
3.3.5 Terms, Conditions, and Qualifications
3.3.6 Consolidating Nontariff Barriers
3.4 The Forum for Tariff Concessions
3.4.1 The “Usual” Forum for Binding Duties
3.4.2 Sectoral Agreements
3.4.3 The Information Technology Agreement (ITA)
3.4.4 The Pharma Agreement
3.4.5 Coalitions
3.4.6 Unilateral Action
3.5 The Schedules of Concession
3.5.1 Certification, Rectification, and Modification of Schedules
3.5.2 The Content and Legal Value of Schedules of Concessions
3.5.3 Defining the Tariff Value
3.6 Safeguarding the Value of Tariff Concessions
3.6.1 Change in the Method of Determining Dutiable Value
3.6.2 Import Monopolies
3.6.3 Disputes Regarding the Proper Classification of Goods
3.6.4 Reduction in Par Values
3.7 Renegotiation of Tariff Protection
3.7.1 Maintaining the Level of Concessions
3.7.2 The Participants
3.7.3 The Various Procedures for Renegotiating Tariff Protection
3.7.4 Agreement on the Amount of Compensation
3.7.5 Failure to Agree on the Amount of Compensation
3.8 Charges Exempted from Article II of GATT
3.8.1 Internal Taxes and Charges
3.8.2 Antidumping and Countervailing Duties
3.8.3 Fees and Charges for Services Rendered
3.8.4 Import Surcharges for BoP Reasons
3.8.5 Safeguards
3.9 Withdrawal from GATT/WTO
3.9.1 Withdrawing from the WTO
3.9.2 The GATT Solution
3.9.3 GATT Practice
3.10 Exceptions
3.11 Institutions
3.12 Concluding Remarks
4 Most Favored Nation
4.1 The Legal Discipline and Its Rationale
4.1.1 The Legal Discipline
4.1.2 The Rationale for the Legal Discipline
4.1.3 Discussion
4.2 Coverage of the Legal Discipline
4.2.1 De Jure versus De Facto Discrimination
4.2.2 Measures Covered
4.3 Exemptions
4.3.1 Grandfathering Imperial Preferences
4.3.2 Other Historical Preferences
4.3.3 Imperial and Historical Preferences Today
4.4 The WTO “Club” Must Receive the Best Treatment
4.4.1 WTO Members versus the Rest of the World
4.4.2 As Membership Increases, So Does the Impact of MFN
4.5 Favors/Advantages Must Be Accorded Immediately and Unconditionally
4.5.1 Immediately
4.5.2 Unconditionally
4.6 Defining Origin
4.6.1 The Pre-GATT Years
4.6.2 The GATT Regime
4.6.3 The WTO Regime
4.6.4 Preferential Rules of Origin
4.6.5 The Rise of Global Value Chains (GVCs)
4.7 Like Products
4.7.1 Like Products and Beggar-Thy-Neighbor Policies
4.7.2 Tariff Classification
4.8 Exceptions
4.8.1 Special and Differential Treatment
4.8.2 PTAs
4.8.3 General Exceptions
4.8.4 National Security
4.8.5 Waivers
4.8.6 Nonapplication
4.9 Concluding Remarks
5 Special and Differential Treatment for Developing Countries
5.1 The Legal Discipline and Its Rationale
5.1.1 The Legal Discipline
5.1.2 The Rationale for the Legal Discipline
5.1.3 Discussion
5.2 Toward Special and Differential Treatment
5.2.1 Striving for a Two-Tier GATT
5.2.2 The Content of Part IV
5.3 The Enabling Clause Enters the Frame
5.3.1 An Atypical Birth
5.3.2 The Main Features of the Enabling Clause
5.3.3 The Legal Nature of the Enabling Clause
5.3.4 Donors and Beneficiaries
5.3.5 GSP Schemes
5.3.6 South-South Preferences
5.4 Special and Differential Treatment Other Than GSP
5.4.1 Typology
5.4.2 Transparency Mechanism for Preferential Trade Advantages
5.5 The Wider Picture
5.5.1 Early Years
5.5.2 The DDA
5.5.3 Aid for Trade
5.5.4 Trade, Poverty, and Inequality
5.6 Institutions
5.7 Concluding Remarks
6 Preferential Trade Agreements
6.1 The Legal Discipline and Its Rationale
6.1.1 The Legal Discipline
6.1.2 The Rationale for the Legal Discipline
6.1.3 Discussion
6.2 Why Go Preferential?
6.3 The Legal Requirements for GATT-Consistent PTAs
6.3.1 An Exception to MFN
6.3.2 Notification Requirements
6.3.3 Internal Requirement
6.3.4 External Requirement
6.3.5 The Nature of Review
6.4 Litigating PTAs
6.4.1 Litigation in the GATT Era
6.4.2 Litigation in the WTO Era
6.4.3 Why So Little Litigation?
6.4.4 Is De Facto Tolerance of PTAs an Issue?
6.5 Institutions
6.6 Concluding Remarks
7 Domestic Policies/National Treatment
7.1 The Legal Discipline and Its Rationale
7.1.1 The Legal Discipline
7.1.2 The Rationale for the Legal Discipline
7.1.3 Discussion
7.2 Measures Coming under the Purview of Article III of GATT
7.2.1 Local Content Requirements
7.2.2 All Other Measures Affecting Trade
7.3 Measures Exempted
7.3.1 Government Procurement
7.3.2 Subsidies
7.3.3 Film Quotas
7.3.4 Income Taxes, Social Security, and Payroll Taxes
7.3.5 Investment Protection
7.3.6 Goods in Transit
7.4 The Scope of National Treatment
7.4.1 De Jure, De Facto Discrimination
7.4.2 Duties Bound and Unbound
7.4.3 Domestic Measures Enforced at the Border
7.4.4 Jurisdictional Issues
7.5 Direct Taxes on Products
7.5.1 DCS Products
7.5.2 Like Products
7.6 Other Measures Affecting Trade
7.6.1 Laws, Regulations, or Requirements
7.6.2 Affecting Sale, Offering for Sale
7.6.3 Like Products in Article III.4 of GATT
7.6.4 Less Favorable Treatment (LFT)
7.7 Exceptions
7.8 Institutions
7.9 Concluding Remarks
7.9.1 Nondiscrimination and Efficiency
7.9.2 Asymmetric Information and Its Discontents
7.9.3 In Search of a Smoking Gun
8 State Trading Enterprises
8.1 The Legal Discipline and Its Rationale
8.1.1 The Legal Discipline
8.1.2 The Rationale for the Legal Discipline
8.1.3 Discussion
8.2 Defining STEs
8.2.1 The Law
8.2.2 Practice
8.3 The Obligations Assumed
8.3.1 Nondiscrimination
8.3.2 Commercial Considerations
8.3.3 Adequate Opportunities to Compete
8.3.4 Exceptions
8.4 Transparency
8.5 Institutions
8.6 Concluding Remarks
9 Exceptions and Deviations from Obligations Assumed under GATT
9.1 Exceptions and Deviations
9.2 General Exceptions
9.2.1 The Legal Discipline and Its Rationale
9.2.2 Elements Common to All Listed Exceptions
9.2.3 Public Morals
9.2.4 Humans, Animals, Plant Life, and Health
9.2.5 Imports and Exports of Gold and Silver
9.2.6 Compliance with Laws Not Inconsistent with GATT
9.2.7 Prison Labor
9.2.8 National Treasures
9.2.9 Conservation of Exhaustible Natural Resources
9.2.10 Intergovernmental Commodity Agreements (ICAs)
9.2.11 Government Stabilization Plans
9.2.12 Products in General or Local Short Supply
9.2.13 Complying with the Chapeau
9.2.14 Article XX of GATT and Protocols of Accession
9.2.15 Article XX of GATT and Annex 1A Agreements
9.3 National Security
9.3.1 Balancing Trade Openness and Essential Interests
9.3.2 National Security in a Divided World
9.3.3 Practice
9.4 Waivers
9.4.1 A Transitional Arrangement
9.4.2 Waivers Are Justiciable
9.4.3 Waivers in Force
9.5 Nonapplication
9.5.1 The GATT Regime and Its Rationale
9.5.2 Nonapplication in the WTO
9.5.3 List of Instances of Nonapplication
9.6 Concluding Remarks
Notes
References
Index
