Law 589 : International Trade Law and Finance II

The State of Arcadia (Arcadia) is a member of the World Trade Organization (WTO). After the recent general election, a conservative political party took over as the Arcadian new government. This new conservative government is well known for its stand against the use of contraception that it has generally associated with abortion. The Arcadian new government claim that despite their differences in nature and moral gravity, contraception and abortion are often closely connected as \"fruits of the same rotten tree\". It recently introduced a series of legislative measures restricting the importation and distribution of books and magazine on contraception as well as abortion. Arcadia has a very small publications industry with a very limited circulation within the population. On this basis, Arcadia does not extend these measures to its domestic publishers. The State of Pacica (Pacica) is also a WTO member and the main exporter of publications to the Arcadian market. Upon realizing the restrictive measures imposed by Arcadia, Pacica challenges the Arcadian's legislative measures as being inconsistent with Arcadia's obligations under the GATT 1994. In response to Pacica's challenges, Arcadia concedes that the measures are inconsistent with GATT 1994 but seeks to justify them under Article XX (a) of the GATT 1994 as necessary for the protection of public morals. During the proceedings at the WTO dispute settlement, Pacica argues that even if Arcadia has valid concerns based on public morals in this area, it should have addressed this in a less trade restrictive manner such as through the introduction of a content review system. As a legal representative of Arcadia, you are required to provide legal opinion on the following issues: (a) Whether Arcadia's legislative measures are justied under Article XX (a) of the GATT 1994; and (20 marks) (b) Whether Arcadia should apply a less trade restrictive measure as an alternative means of realizing the objective to protect public morals. (20 marks) Please support your answers in both questions (a) and (b) above with relevant cases