Cover 1
Half-title 3
Series-title 4
Title 5
Copyright 6
Dedication 7
Contents 9
Figures and tables 17
Preface and acknowledgements 19
Table of GATT 1947 Reports 21
Table of WTO Reports 23
Abbreviations 28
Introduction 31
Part I: Foundations: the relevance of NPa measures at the interface of domestic regulation, economic globalization and world trade law 37
1 Setting the stage for legal analysis 41
1.1 Brief introduction to the topic 41
1.2 The crucial cases 43
1.2.1 Tuna-Dolphin I (1991) 43
1.2.2 Tuna-Dolphin II (1994) 45
1.2.3 Shrimp Turtle (1998) 46
1.2.3.1 The Panel Report 47
1.2.3.2 The Appellate Body Report 48
1.2.3.3 Shrimp Turtle \u2013 Article 21.5 (2001) 50
1.3 Overview of the PPM debate 50
1.3.1 Emergence of the PPM debate 51
1.3.2 Developments in academia and practice 52
1.3.3 Concepts and terms central to the \u2018PPM debate\u2019 55
1.3.3.1 The product\u2013process distinction 55
1.3.3.2 Processes and production methods 57
1.3.3.3 \u2018Product-related\u2019 and \u2018non-product-related\u2019 PPMs 58
1.3.4 Unanswered questions and legal uncertainty 59
1.4 Identification of key legal issues 61
1.4.1 Customs tariffs 62
1.4.1.1 Article II 62
1.4.1.2 The relevance of international rules 63
1.4.1.3 Obligation to most-favoured-nation treatment 65
1.4.2 Import prohibitions or other quantitative restrictions 66
1.4.3 Non-tax internal regulation 68
1.4.4 Internal taxes and other internal charges 69
1.4.4.1 Indirect taxation and NPAs 70
1.4.4.2 Direct taxes and NPAs 73
1.4.5 Border tax adjustment 73
1.4.5.1 Imports 74
1.4.5.2 Exports 75
1.4.6 Anti-dumping duties 76
1.4.7 Subsidies 78
1.4.7.1 Subsidies linked to NPAs 78
1.4.7.2 Low standards as illegitimate subsidization 81
1.4.8 General exceptions 82
1.4.8.1 The particular exceptions 83
1.4.8.2 The introductory provision of Article XX 84
1.4.9 Technical barriers to trade and sanitary and phytosanitary measures 85
1.4.10 Summary 86
1.5 Delineation and foundations of the legal analysis 87
1.5.1 Scope of the analysis 87
1.5.1.1 General object of research: trade in goods 87
1.5.1.2 Scope of the legal analysis 90
1.5.2 Terms and concepts 91
1.5.2.1 NPA measures 91
1.5.2.2 Processes and production methods or \u2018PPMs\u2019 92
2 Putting the debate into perspective: analysis of the socio-economic context 94
2.1 National regulation and NPAs 95
2.1.1 Overview of regulation 96
2.1.1.1 General domestic regulation 96
2.1.1.2 The notion of social regulation 98
2.1.1.3 Different modes of regulation 100
2.1.2 Differences and similarities in regulatory cultures: the example of the United States and Europe 104
2.1.2.1 Regulation in the United States 105
2.1.2.2 Regulation in Western Europe 108
2.1.2.3 Assessment of differences and similarities 111
2.1.3 The economic case for state intervention 113
2.1.3.1 Basic considerations on free markets and the economic role of governments 114
2.1.3.2 Categories of economic rationales for regulation 116
2.1.3.2.1 Regulation to safeguard competitive markets 117
2.1.3.2.2 Regulation addressing market failure 118
2.1.3.2.3 Regulation in pursuit of distributional or social objectives 120
2.1.3.3 Preliminary conclusion 121
2.2 International trade and NPA measures 122
2.2.1 Design parameters of the multilateral trading system 122
2.2.1.1 Object and purpose of the WTO Agreements 122
2.2.1.1.1 Identification 123
2.2.1.1.2 Relevance 126
2.2.1.2 Economic rationales of the multilateral trading system 128
2.2.2 The interface of domestic regulation and international trade 130
2.2.2.1 The general debate on domestic regulation 130
2.2.2.2 NPA measures and international trade in goods 133
2.2.3 Political arguments in the international debate 134
2.2.3.1 Effective and efficient protection of national or foreign objects 134
2.2.3.2 Sovereignty and extraterritoriality 136
2.2.3.3 Unilateralism 138
2.2.3.4 Competitiveness and effective regulation 140
2.2.3.5 Summary 143
Part II: Legal analysis: reviewing the status of NPa measures de lege lata 145
3 Preliminary considerations: applicability of WTO law and other international law to NPA measures 149
3.1 Applicability of WTO law to NPA measures 150
3.2 The relevance of conventional international law in WTO dispute settlement 151
3.2.1 No closed self-contained regime 152
3.2.2 General applicability of international law 154
3.2.3 Conflicts with other international treaties and instruments 158
3.2.3.1 Existence of a conflict of norms 158
3.2.3.2 Applicable conflict rules 162
3.2.3.2.1 Asymmetrical conflicts 163
3.2.3.2.2 Symmetrical conflicts 164
3.2.3.3 Conflicts of norms, NPas and the example of CItES 168
3.3 NPA measures and the law on state responsibility 170
3.4 Conclusion 175
4 Consistency with GATT obligations 177
4.1 The scope of the national treatment obligations 179
4.1.1 The use of specific terms 180
4.1.1.1 Narrow interpretation: products 181
4.1.1.2 Broad interpretation: \u2018affecting\u2019 182
4.1.1.3 Preliminary conclusion 185
4.1.2 Comparison of Article III:2 and 4 186
4.1.3 Measures \u2018of the same nature\u2019 188
4.1.4 Summary and conclusion 191
4.2 The principle of non-discrimination and the \u2018like products\u2019 concept 192
4.2.1 Introduction to the principle of non-discrimination 192
4.2.1.1 General problems inherent to the principle 193
4.2.1.2 Clear prohibition of origin-based discrimination 195
4.2.1.3 Non-discrimination and NPAs 197
4.2.2 Interpreting the \u2018like products\u2019 concept with special consideration of NPAs 198
4.2.2.1 The DSB approach: \u2018objective\u2019 determination 199
4.2.2.1.1 Main features 200
4.2.2.1.1.1 Relevant factors 202
4.2.2.1.1.2 Varying importance of factors 204
4.2.2.1.1.3 Degree of \u2018likeness\u2019 under different provisions 207
4.2.2.1.2 Relevance of NPAs 209
4.2.2.1.2.1 Processes and production methods 209
4.2.2.1.2.2 Output and producer characteristics 213
4.2.2.1.2.3 Price 219
4.2.2.1.2.4 National policies and regulatory regimes 222
4.2.2.1.3 Relevance of \u2018minor\u2019 physical differences 226
4.2.2.1.3.1 Editorial content 227
4.2.2.1.3.2 Environmental impacts 230
4.2.2.1.3.3 Toxicity and risk 231
4.2.2.1.3.4 Genetic modifications 233
4.2.2.1.4 Summary 234
4.2.2.2 The \u2018aim and effects\u2019 theory 236
4.2.2.2.1 Rationales and main elements 237
4.2.2.2.1.1 The criteria 238
4.2.2.2.1.2 Scope and relevance 239
4.2.2.2.1.3 Diversity of opinions 240
4.2.2.2.2 Significance for NPA measures 241
4.2.2.2.3 The \u2018aim and effects\u2019 theory in WTO adjudication 242
4.2.2.2.3.1 US \u2013 Malt Beverages (1992) 243
4.2.2.2.3.2 US \u2013 Taxes on Automobiles (1994) 244
4.2.2.2.3.3 Japan \u2013 Alcoholic Beverages (1996) and EC \u2013 Bananas (1997) 245
4.2.2.2.3.4 Subsequent jurisprudence 248
4.2.2.2.4 Critique 250
4.2.2.3 Market-based or economic approaches 252
4.2.2.3.1 Rationales and main elements 253
4.2.2.3.2 Significance for NPA measures 256
4.2.2.3.3 Relevance in WTO adjudication 258
4.2.2.3.4 Critique 262
4.2.3 Summary 266
4.3 Detrimental treatment and NPA measures 270
4.4 Conclusions 274
5 Limits to the justification of NPA measures under the general exceptions 277
5.1 Particularities in interpreting Article XX 279
5.1.1 Relevance of international law for interpretation 279
5.1.1.1 Basic framework of interpretation 280
5.1.1.2 GATT and WTO case law 282
5.1.1.3 Signatories-based approach 284
5.1.1.3.1 Congruence within disputes 285
5.1.1.3.2 Incongruence within disputes 287
5.1.1.4 Objective approach 288
5.1.1.4.1 The nature of interpretation 288
5.1.1.4.2 Relevance of international instruments 290
5.1.1.4.3 Summary 293
5.1.1.4.4 Excursus: inter se understanding on interpretation 294
5.1.2 Other interpretative questions 295
5.1.2.1 No restrictive interpretation 295
5.1.2.2 Static or evolutionary interpretation? 297
5.1.3 Summary 299
5.2 General concerns regarding justifiability of NPA measures 299
5.2.1 Vagueness of basic objections 300
5.2.2 Review of arguments against justifiability 302
5.2.2.1 Irreconcilability with WTO objectives and purpose 302
5.2.2.2 Per se violation of the chapeau 304
5.2.2.3 Violation of the sovereignty principle 305
5.2.3 Result 311
5.3 The scope of Article XX 311
5.3.1 The geographical scope and the problem of extraterritoriality 311
5.3.1.1 Insufficient GATT and WTO case law 313
5.3.1.2 The text of the particular exceptions 314
5.3.1.2.1 Direct references to the geographical scope 315
5.3.1.2.2 Indirect reference: the means\u2013end relationship 316
5.3.1.2.2.1 \u2018necessary\u2019 316
5.3.1.2.2.2 \u2018relating to\u2019 and \u2018imposed for\u2019 318
5.3.1.2.2.3 Implications for the geographical scope 321
5.3.1.2.3 Indirect reference in exception (g): domestic restrictions 325
5.3.1.2.3.1 History and relevant case law 325
5.3.1.2.3.2 Distinction between foreign and shared resources 327
5.3.1.3 Object and purpose 330
5.3.1.4 Negotiating history 332
5.3.1.5 Alternative approaches to extraterritoriality 335
5.3.1.6 Conclusions on the geographical scope 338
5.3.2 Subject coverage of the particular exceptions 339
5.3.2.1 Exclusivity of listed policies 340
5.3.2.2 Coverage of other policies 341
5.3.2.2.1 Protection of the environment 341
5.3.2.2.2 Human rights and labour standards 343
5.3.2.3 Summary 346
5.3.3 Special consideration of the public morals exception 346
5.3.3.1 Open subject coverage 347
5.3.3.2 Standards of right and wrong 351
5.3.3.3 The geographical scope 353
5.3.3.3.1 Location of moral standards 353
5.3.3.3.2 Location of the threat 354
5.3.3.3.3 Preliminary conclusions 356
5.3.3.4 Requirements relating to the means\u2013end relationship 356
5.3.3.4.1 Motivation for moral NPA trade measures 357
5.3.3.4.2 Suitability 358
5.3.3.4.3 Necessity 359
5.3.3.4.3.1 \u2018Relative\u2019 and \u2018absolute\u2019 necessity 360
5.3.3.4.3.2 WTO jurisprudence on \u2018weighing and balancing\u2019 361
5.3.3.4.3.3 Other approaches 368
5.3.3.4.4 Conclusions for an adequate \u2018necessity\u2019 test 369
5.3.3.4.4.1 Step 1 370
5.3.3.4.4.2 Step 2 371
5.3.3.4.4.3 Step 3 372
5.3.4 Summary 373
5.4 The chapeau and other requirements regarding the application of measures 375
5.4.1 A \u2018balancing process\u2019 under the chapeau? 377
5.4.2 The requirements 379
5.4.2.1 Introductory remarks 380
5.4.2.2 General requirements and principles 382
5.4.2.2.1 An \u2018unavoidable\u2019 standard of justifiability? 382
5.4.2.2.2 Relevance of different conditions in countries 383
5.4.2.2.3 Special and differential treatment 386
5.4.2.2.3.1 The principle of SDT 386
5.4.2.2.3.2 Relevance of SDT for the chapeau 389
5.4.2.2.4 Due process and general principles 389
5.4.2.3 Specific problem fields 391
5.4.2.3.1 No prohibition of unilateral measures 391
5.4.2.3.2 Are serious negotiations obligatory? 392
5.4.2.4 Specific requirements for NPA measures 394
5.4.2.4.1 Relevant characteristics of NPA measures 395
5.4.2.4.2 Consultations and negotiations 396
5.4.2.4.3 Implementation periods 397
5.4.2.4.4 Transfer of technologies, administrative and financial support 399
5.5 Conclusions 402
6 The status of PPM measures under the TBT Agreement and the SPS Agreement 404
6.1 Introduction 404
6.2 The TBT Agreement and PPMs 404
6.2.1 Applicability of the TBT Agreement 405
6.2.1.1 Categorization of relevant norms linked to unincorporated PPMs 406
6.2.1.2 Technical regulations and standards 407
6.2.1.3 Labelling requirements 411
6.2.1.3.1 The EU regulatory framework on egg labelling 413
6.2.1.3.2 Coverage with respect to labelling of PPMs and NPAs 415
6.2.1.3.2.1 Labelling of unincorporated PPMs 415
6.2.1.3.2.2 Other NPAs 418
6.2.2 Substantive provisions 419
6.2.2.1 No per se illegality 419
6.2.2.2 Substantive requirements on technical regulations and standards 423
6.2.2.2.1 Overview of substantive requirements 423
6.2.2.2.2 The distinction between regulations and standards 425
6.2.2.3 Legitimacy of the objective pursued: special consideration of consumer information 426
6.2.2.3.1 Consumer information as an internationally recognized value 428
6.2.2.3.2 Consumer information as precondition for the functioning of markets 435
6.2.2.3.3 Preliminary conclusions 440
6.2.2.4 Necessity 442
6.2.3 The relationship of the TBT Agreement and the GATT 444
6.2.4 Special and differential treatment 445
6.3 The SPS Agreement 449
6.4 Result 452
Part III: Outlook: new perspectives on the legal status of NPa measures 453
7 The interface of international tradeand public policies: an overview over existingproposals for reform 457
7.1 Review 457
7.1.1 Denial of competence? 458
7.1.2 Changes at WTO level 462
7.1.2.1 Substance 463
7.1.2.2 Procedure 468
7.1.3 Institutional changes and governance-related suggestions 470
7.1.3.1 Institutional changes 470
7.1.3.2 Governance in a multi-level system 473
7.2 Comment 478
8 A regulation-based perspective on NPA trade measures 481
8.1 Regulatory problems linked to international trade 482
8.1.1 Side-effects of international trade 483
8.1.2 The regulatory dilemma 484
8.1.2.1 Effectiveness of unimpaired national regulation 484
8.1.2.2 Effectiveness of impaired national regulation 486
8.1.3 Market failure and the lack of international institutions 491
8.1.4 Regulatory failure is not in line with objectives and key rationales of the WTO 493
8.1.5 Conclusions 496
8.2 Applying the regulation-based perspective 497
8.2.1 Deduction of the regulation-based approach 497
8.2.2 Categorization of national regulation 499
8.2.2.1 Category 1: Regulation reducing market imperfections 499
8.2.2.2 Category 2: Regulation addressing market failure 503
8.2.2.3 Category 3: Distributive regulation 508
8.2.3 General conditions of consistency 511
8.2.3.1 General requirements 511
8.2.3.2 National regulation and SDT 512
8.2.4 Conclusions 513
Summary and concluding remarks 515
Part I Foundations 515
Part II Legal analysis 516
Part III Outlook 520
Concluding remarks 521
Bibliography 524
Official documents 541
Index 543