17 May 2005 BIICL Annual WTO Conference

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Balancing trade and non-trade policy objectives in GATS:

Potentials and limits of Article XIV

Markus KrajewskiUniversity of Potsdam

17 May 2005 BIICL Annual WTO Conference

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• Trade and non-trade policy objectives• Methods of balancing• Potentials of Art. XIV GATS: US –

Gambling and Betting• Stretching the limits of Art. XIV GATS

– Human rights– Cultural diversity

Outline

17 May 2005 BIICL Annual WTO Conference

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• limited references in WTO law– Art. 20 (c) AoA: “non-trade concerns”– EC – Tariff Preferences: “measure of

‘non-trade’ nature”

• versus extensive use in WTO literature

• but: What are “non-trade” objectives?(“I know it when I see it”?)

Trade and non-trade policy objectives

17 May 2005 BIICL Annual WTO Conference

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• interpreting „necessary“ to include “weighing and balancing” (Korea – Beef)

• deference to national regulatory autonomy (in dubio mitius) (EC –Hormones)

• using other international agreements as context of WTO provisions (US –Shrimp)

Methods of balancing

17 May 2005 BIICL Annual WTO Conference

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US – Gambling and Betting: Art. XIV (a)• leaves scope for Members to define

and apply concepts according to own systems and values

• includes – internal security (criminal offences) and– protection of youth and other vulnerable

groups

Potentials of Art. XIV GATS

17 May 2005 BIICL Annual WTO Conference

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• Protection of human rights?ECJ, Omega Spielhallen: „public policy“

includes protection of human dignitya model for WTO dispute settlement?

• Cultural diversity?Draft UNESCO convention: deviation

from GATS to protect cultural diversity can it become context of Art. XIV (a)?

Stretching the limits of Art. XIV GATS

17 May 2005 BIICL Annual WTO Conference

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• Art. XIV „sedes materiae“ for balancing trade and non-trade policy objectives in GATS

• but can it be stretched far enough so that GATS is „not more burdensome than necessary“ on non-trade policy objectives?

Conclusion