Keywords: article XXI of the GATT
The article is focused on interactive relationship between the international economic law and the sovereignty of States and their regulatory power. The author explores complex special cases of appealing economic sanctions and bringing them to dispute before the WTO. The success of the appeal depends on whether a government could bypass the national security exceptions set forth in Article XXI:(b)(iii) of the GATT. These exempting rules are often seen as a strong barrier on the way to a favourable resolution of such disputes in the WTO dispute settlement system, because they give the state practically unlimited discretion. Defining the limits of the discretion is the goal of present research, which the author concludes with two main deductions. Despite the “self-judging” nature of this provision, states’ actions contrary to the good faith principle will not enjoy the protection of Article XXI:(b)(iii) of the GATT. Not only does this interpretation of the clause find support in the idea that the good faith principle permeates the whole system of obligations under international law, but also this approach is confirmed by international investment law jurisprudence and that of the ICJ. In addition, recent cases involving China brought before the WTO Dispute Settlement Body to be resolved give an alarm message showing that the exceptions concerned, apparently, do not apply automatically to WTO member states’ commitments under their WTO accession protocols relating to trade in goods. Analogous to the general exceptions in the GATT, Article XXI of the GATT applies to obligations arising from WTO accession protocols, if there is a clearly discernible, objective link to regulation of trade.
About the author: Aleksey Petrenko – Ph.D. student, University of Göttingen, LL.M. (Georg-August-Universität Göttingen).
Citation: Petrenko A. (2016) Ekonomicheskie sanktsii i ikh osparivanie v VTO v kontekste isklyucheniy po soobrazheniyam natsional’noy bezopasnosti (stat’ya XXI:(b)(iii) GATT) [Economic sanctions and challenge of these in the WTO in the context of the national security exceptions (GATT Article XXI:(b)(iii))]. Mezhdunarodnoye pravosudie, no.2, pp.69–86. (In Russian).
References
Akande D., Williams S. (2003) International Adjudication on National Security Issues: What Role for the WTO? Virginia Journal of International Law, vol.43, no.2, pp.365–404.
Alford R. (2013) Cybersecurity at the WTO. Opinio Juris. Available at: http://opiniojuris.org/2013/03/27/cybersecurity-at-the-wto/ (accessed 26.05.2016).
Bazanova E., L’utova M. (2015) VEB hochet, chtobi Rossiya osporiala sanktsii. Goskorporatsiya hochet pomoch’ podgotovit’sya k prozessu [VEB wants Russia to challenge the sanctions. The government-owned corporation wants to facilitate the participation in proceedings]. Vedomosti, 22 July. Available at: http://www.vedomosti.ru/politics/articles/2015/07/22/601615-veb-hochet-chtobi-rossiya-osporila-sanktsii (accessed 26.05.2016). (In Russian).
Beyerlin U. Sustainable Development. In: Wolfrum R. (ed.) Max Planck Encyclopedia of Public International Law. Available at: http://opil.ouplaw.com/home/EPIL (accessed 26.05.2016).
Bleckmann A. (1993) Die Rechtsanalogie im Völkerrecht. Archiv des Völkerrechts, vol.31, no.4, pp.353–366.
Bleckmann A. (1977) Zur Verbindlichkeit des allgemeinen Völkerrechts für internationale Organisationen. Zeitschrift für ausländisches öffentliches Recht und Völkerrecht, vol.37, pp.107–121.
Bossuyt M. (2000) The Adverse Consequences of Economic Sanctions on the Enjoyment of Human Rights. Sub-Commission on the Promotion and Protection of Human Rights. Commission on Human Rights. Economic and Social Council: Working Paper No.E/CN4/Sub.2/2000/33. Available at: https://www.globalpolicy.org/global-taxes/42501-the-adverse-consequences-of-economic-sanctions.html (accessed 26.05.2016).
Briese R., Schill S. (2009) Djibouti v. France: Self-Judging Clauses before the International Court of Justice. Melbourne Journal of International Law, vol.10, no.1, pp.308–328.
Buchmüller C. (2013) Strom aus erneuerbaren Energien im WTO-Recht, zur Vereinbarkeit von Einspeisevergütungssystemen und Quotenmodellen mit Zertifikatehandel mit dem WTO-Recht, Baden-Baden: Nomos.
Burke-White W.W., von Staden A. (2008) Investment Protection in Extraordinary Times: The Interpretation and Application of Non-Precluded Measures Provisions in Bilateral Investment Treaties. Virginia Journal of International Law, vol.48, no.2, pp.307–410.
Chizhov V.A. (2016) Rossiya mozhet osporit’ sanktsii ES cherez VTO [Russia may challenge the EU’s sanctions in the WTO]. Kommersant, 26 May. Available at: http://www.kommersant.ru/doc/2537981 (accessed 26.05.2016). (In Russian).
Clark H.L., Wang L.W. (2007) Foreign Sanctions Countermeasures and Other Responses to U.S. Extraterritorial Sanctions: Dewey Ballantine LLP Working Paper.
Espa I. (2012) The Appellate Body Approach to the Applicability of Article XX GATT In the Light of China – Raw Materials: A Missed Opportunity? Journal of World Trade, vol.46, no.6, pp.1399–1424.
Guan W. (2014) How General Should the GATT General Exceptions be?: A Critique of the “Common Intention” Approach of Treaty Interpretation. Journal of World Trade, vol.48, no.2, pp.219–258.
Gudkov I.V., Mizulin N.M. (2014) “Sanktsionnaya voyna” ES i Rossii v svete prava VTO [«Sanctions war» between the EU and Russia in the light of the WTO law]. Pravo VTO, no.2, pp.46–52. (In Russian).
Hestermeyer H.P. (2011) Article XXI GATT. In: Wolfrum R., Stoll P.-T., Hestermeyer H.P. (eds.) WTO – Trade in Goods, (Max Planck Commentaries on World Trade Law; 5), Leiden: Martinus Nijhoff, pp.569–593.
Ispolinov A.S. (2014) Sanktsii v VTO: spetsifika i praktika primeneniya [Sanctions in the WTO: peculiarity and practice of application]. Zakonodatel’stvo, no.10, pp.66–77. (In Russian).
Jackson J.H. (1969) World Trade and the Law of GATT (a Legal Analysis of the General Agreement on Tariffs and Trade), Indianapolis, IN: Bobbs-Merrill.
Jennings R., Watt A. (eds.) (1992) Oppenheim’s International Law, vol.I, 9th ed., Harlow: Longman.
Kadysheva O.V. (2014) K voprosu o pretsedentnom haraktere resheniy Organa po razresheniyu sporov vo Vsemirnoy torgovoy organizatsii [On a case-law character of Dispute Settlement Body’s decisions in the World Trade Organization]. Evraziyskiy yuridicheskiy zhurnal, no.6, pp.97–101. (In Russian).
Kennedy M. (2013) The Integration of Accession Protocols into the WTO Agreement. Journal of World Trade, vol.47, no.1, pp.45–75.
Koskenniemi M. (2006) Fragmentation of International Law: Difficulties Arising from the Diversification and Expansion of International Law: Report of the Study Group of the ILC, A/CN.4/L.682.
Kozheurov Ya.S. (2013) Mezhdunarodnaya otvetstvennost’ za narushenie «pravo VTO»: sootnoshenie s obshchim mezhdunarodnim pravom [International responsibility for violation of «WTO law»: correlation with general international law]. Aktual’nye problemy mezhdunarodnogo prava, no.10, pp.1334–1340. (In Russian).
Lim C.L., Senduk J.H. (2014) The Wages of Belonging: Rare Earths from China, and the Return of GATT À-LA-Carte. Global Trade and Customs Journal, vol.9, no.9, pp.380–396.
Liu J. (2014) Accession Protocols: Legal Status in the WTO Legal System. Journal of World Trade, vol.48, no.4, pp.751–771.
Lobsinger E.J. (2006) Diminishing Borders in Trade and Terrorism: an Examination of Regional Applicability of GATT Article XXI National Security Trade Sanctions. ILSA Journal of International & Comparative Law, vol.13, no.1, pp.99–138.
Lukashuk I.I. (2005) Mezhdunarodnoe pravo. Obshchaya chast’ [International law. General part], 3rd ed. Moscow: Wolters Kluwer. (In Russian).
Malloy M.P. (2003) Où est votre chapeau? Economic Sanctions and Trade Regulation. Chicago Journal of International Law, vol.4, no.2, pp.371–384.
Mavroidis P.C. (2005) The General Agreement on Tariffs and Trade: A Commentary, Oxford: Oxford University Press.
Mavroidis P.C. (2013) Trade in Goods, The GATT and the Other WTO Agreements Regulating Trade in Goods, Oxford: Oxford University Press.
McGee R.W. (2007) Economic Sanctions and International Law. Available at: http://ssrn.com/abstract=955972 (accessed 26.05.2016).
Neuwirth R.J., Svetlicinii A. (2015) The Economic Sanctions over the Ukraine Conflict and the WTO: “Catch-XXI” and the Revival of the Debate on Security Sanctions. Journal of World Trade, vol.49, no.5, pp.891–914.
Oesch M. (2003) Standards of Review in WTO Dispute Resolution, Oxford: Oxford University Press.
Peng S. (2015) Cybersecurity Threats and the WTO National Security Exception. Journal of International Economic Law, vol.18, no.2, pp.449–478.
Piczak T.C. (1999) The Helms-Burton Act: U.S. Foreign Policy toward Cuba, the National Security Exception to the GATT and the Political Question Doctrine. University of Pittsburgh Law Review, vol.61, no.1, pp.287–328.
Qin J.Y. (2011) Pushing the Limits of Global Governance: Trading Rights, Censorship and WTO Jurisprudence – a Commentary on the China – Publications Case. Chinese Journal of International Law, vol.10, no.2, pp.271–322.
Rachkov I.V. (2014) Ekonomicheskiye sanktsii s tochki zreniya prava GATT/VTO [Economic sanctions in light of GATT/WTO law]. Mezhdunarodnoe pravosudie, no.3, pp.93–113. (In Russian).
Reyes C.L. (2009) International Governance of Domestic National Security Measures: the Forgotten Role of the World Trade Organization. UCLA Journal of International Law & Foreign Affairs, vol.14, no.2, pp.531–566.
Rose-Ackerman S., Billa B. (2008) Treaties and National Security. NYU Journal of International Law and Politics, vol.40, no.2, pp.437–496.
Schill S., Briese R. (2009) “If the State Considers”: Self-Judging Clauses in International Dispute Settlement. Max Planck United Nations Yearbook, vol.13, pp.61–140.
Schloemann H.L., Ohlhoff S. (1999) “Constitutionalization” and Dispute Settlement in the WTO: National Security as an Issue of Competence. American Journal of International Law, vol.93, no.2, pp.424–451.
Singh Sh. WTO Compatibility of United States’ Secondary Sanctions Relating to Petroleum Transactions with Iran: Working Paper of the Centre for WTO Studies CWS/WP/200/1.
Smbatyan A.S. (2006) Mezhdunarodnye torgovye spory v GATT/VTO: izbrannye resheniya (1952–2005 gg.) [International trade disputes in the GATT/WTO: selected decisions (1952–2005)]. Moscow: Wolters Kluwer. (In Russian).
Smbatyan A.S. (2014) Protsedura razresheniya sporov Vsemirnoy torgovoy organizatsii [Procedure of dispute settlement of the WTO]. Pravo VTO, no.2, pp.23–45. (In Russian).
Smbatyan A.S., Tymma S.V. (2015) Redkozemel’nye metally kak povod zadumat’sya o normativnoy tsennosti pravovih positsiy Organa po razresheniyu sporov VTO [Rare Earths as a pretext to reflect on a normative value of WTO Dispute Settlement Body’s legal opinion]. Mezhdunaronoe pravosudie, no.1, pp.102–117. (In Russian).
Stoll P.-T. (2006) Article 3 DSU. In: Wolfrum R., Stoll P.-T., Kaiser K. (eds.) WTO – Institutions and Dispute Settlement, (Max Planck Commentaries on World Trade Law; 2), Leiden: Martinus Nijhoff, pp.281–314.
Stoll P.-T. (2012) Internationaler Warenverkehr. In: Ehlers D., Fehling M., Pünder H. (eds.) Besonderes Wirtschaftsrecht, 3rd ed., vol.I, Heidelberg: C.F.Müller, pp.116–146.
Titi A. (2014) The Right to Regulate in International Investment Law, Baden-Baden: Nomos.
Tunkin G.I. (2006) Teoriya mezdunarodnogo prava [Theory of international law]. Moscow: Zertsalo. (In Russian).
Ulyukaev A.V. (2015) RF sohranit produktovoe embargo v sluchae prodleniya sanktsii ES [The Russian Federation will not lift the product embargo in case the EU’s sanctions would be prolonged]. RIA Novosti, 18 June. Available at: http://ria.ru/economy/20150618/1075959221.html (accessed 26.05.2016). (In Russian).
Vöneky S. Analogy in International Law. In: Wolfrum R. (ed.) Max Planck Encyclopedia of Public International Law. Available at: http://opil.ouplaw.com/home/EPIL (accessed 26.05.2016).
Vranes E. (2005) Lex Superior, Lex Specialis, Lex Posterior – Zur Rechtsnatur der “Konfliktlösungsregeln”. Zeitschrift für ausländisches öffentliches Recht und Völkerrecht, 2005, vol.65, pp.391–405.
Vranes E. (2009) Trade and Environment: Fundamental Issues in International Law, WTO Law, and Legal Theory, Oxford: Oxford University Press.
Wolfe R. (2009) The WTO Single Undertaking as Negotiating Technique and Constitutive Metaphor. Journal of International Economic Law, vol.12, no.4, pp.835–858.
WTO Secretariat (2012) Analytical Index of the GATT: Guide to GATT Law and Practice. Available at: https://www.wto.org/english/res_e/booksp_e/gatt_ai_e/gatt_ai_e.htm (accessed 26.05.2016).
Yamaoka T. (2013) Analysis of China’s Accession Commitments in the WTO: New Taxonomy of More and Less Stringent Commitments, and the Struggle for Mitigation by China. Journal of World Trade, vol.47, no.1, pp.105–157.
Zenkin I.V. (2014) Pravo Vsemirnoy torgovoy organizatsii [Law of the World Trade Organization], Moscow: Mezhdunarodnye otnosheniya. (In Russian).