List and explain 3 Articles of the GATT that permit members to deviate from their obligations under Articles I (MFN), III (National Treatment) and XI (Elimination of Quantitative Restrictions).

Enabling Clause, Generalized System of Preferences, and Article X)O(VlSpecial Treatment for Developing Countries It was unfair for the developing countries to be fully subject to all GATT rules. as they were not on the same level of economic prosperity as the developed countries. As a result, the rules were changed over the years to alleviate some of the hardships for these countries. Greater latitude was permitted to allow these countries to use subsidies to promote economic development and to allow currency-exchange restrictions to address balance-of-payment difculties. Also, the Enabling Clause, adopted in 1979, allowed developed WTO members to deviate from the Article I-MFN obligation. The Enabling Clause entitles developed WTO members to give tariff prefer- ences to imports from developing countries without extending the same preferences to other WTO members. The Enabling Clause is now a part of GATT 1994. This philosophy was rein- forced by the adoption of the GSP. Under this system. developed countries agreed to grant pref- erential treatment to a wide range of exports from developing countries. Additionally, Article XXXVI of the GATT claries that developed countries do not expect developing countries, in the course of trade negotiations, to make concessions, like lowering tariffs, that are inconsistent with their individual development, nancial, and trade needs. The special treatment extended to developing nations is necessary to ensure all countries, including the least developed countries, can integrate into a rules-based trading system while recognizing and minimizing the challenges of doing so. Security Exceptions Under Article XXI, WTO members are entitled to deviate from the obligations of the GATT when they consider that measures are necessary for the protection of their security interests. Article XXI says "Nothing in this Agreement shall be construed ... to prevent any contracting party from taking any action which it considers necessary for the protection of its essential [2020] Emond Montgomery Publications. All Rights Reserved. Chapter 2 The World Trade Organization 45 BOX 2.6 Case Highlight A Dispute Over Product Description Case Name and Tribunal have been ineffective or inappropriate for the EC to use the European Communities-Trade Description of Sardines (WTO Codex Stan 94 requirements in meeting its legitimate objective Dispute Settlement Body, 29 May 2002) 18 in ensuring market transparency, consumer protection, and fair competition in labelling consumer products. Therefore, the EC Facts regulation was more trade-restrictive than necessary. A European Communities regulation prevented Peruvian ex- porters from using the term "sardines" to describe their prod- Analysis/Application uct. An international standard, Codex Stan 94, would have Where an existing international standard allows for a regu- allowed Peru to label their products with the term "sardines" latory objective to be met, domestic standards that place combined with the name of the country of origin, the geo- greater restrictions on importers will be found to be more graphical origin of the species, or the name of the species itself. trade-restrictive than necessary. WTO state parties are ex- pected to use existing international standards unless "their use Issue would be ineffective or inappropriate"19 in allowing them to Was the European Communities' technical regulation more fulfill a particular policy objective. trade-restrictive than necessary? Decision The Codex Stan 94 was a relevant international standard that was not used as the basis for the EC regulation. It would not security interests ... taken in time of war or other emergency in international relations."20 This provision has limited WTO jurisprudence. However, it is clear that states may rely on this excep tion to protect essential security interests, foreseeably dealing with nuclear matter, traffic in weaponry and dual-use products, time of war or national emergencies, and sanctions mandated by the UN Security Council. The protection of "essential security interests" enables WTO members to avoid substantive WTO rules at their own discretion unless challenged by other members through the WTO dis- pute-settlement process. WTO members have been reluctant to use Article XXI, recognizing the potentially negative, tit-for-tat repercussions from fellow members in case the exception is abused, as illustrated by the reciprocal measures taken by Canada, the European Union, and Mexico in response to the United States' unprecedented imposition of tariffs on steel and aluminum imports. On June 1, 2018, the United States imposed tariffs of 25 percent on steel and 10 percent on aluminum imports from Canada, the European Union, and Mexico, justifying the measure on the grounds of Article XXI of GATT: national security. Canada, Mexico, and the European Union consider these tariffs to be protectionist measures in disguise, to which GATT's security exception does not apply. In response to the United States' measure, Canada, Mexico, and the European Union retaliated with their own sets of tariffs on American goods and commenced proceedings in the WTO dispute-settlement system.There are situations in which members may suspend preferential treatment afforded to trade partners. The allowable exceptions in Article XX are in connection to conservation and to the protection of public morals, national treasures, and human and plant life. They are often invoked to address public-policy concerns of the member governments. General Exceptions Articles I, III. and XI create the expectation on the part of WTO member countries that their exports will be accepted by other WTO member countries; homer. under WTO rules. it is possible for a member cauntry to act in a manner inconsistent with these rules and be mused under the provisions of Article XX. Thus, these provisions come into play only once a measure has been found to be inconsistent with other WTO rules. The text of the GATT Article XX pro vision states, in part. Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustiable discrimination between countries where the same conditions prevail, or a disguised restriction on international trade, nothing in this Agreement shall be con- strued to prevent the adoption or enforcement by any contracting party of measures (a) necessary to protect public morals: (b) necessary to protect human. animal or plant life or health; (f) imposed for the protection of national treasures of artistic. historic or archaeological vahte; (5) relating to the conservation of exhaustible natural resources if such measures are made e'ective in conjunction with restrictions on domestic production or consumption. In other words, WTO member states are allowed to deviate from their obligations in Article 1.11.11, and X] of GATT and other WTO agreements as long as the regulations. laws. or other measures implemented with respect to the 10 policy concerns listed in Article XX are not dis- guised restrictions to trade, are justiable, and do not evidence arbitrary discrimination between cauntries in similar conditions. To prove arbitrary or unjustiable discrimination, the member must show three elements: (1) a measure must result in discrimination; {2) discrimination must be arbitrary or unjustiable in character; and (3] discrimination must occur between countries where the some conditions prevail. An example of this is the EECAsbestos Case,\"l discussed in Box 2.3. where France was found to be justied in prohibiting imports of Canadian asbestos and asbestos products. the WTO Appellate Body having determined that the French measure was 'necessary to protect human, animal or plant life or health.\" While in the asbestos case the issue was human health. in the ShrimpSea Turtle Case I (W'I'O Appellate Body, 1998)" the WTO discussed the exhaustible resource provision of Article XX(g) (see Box 2.4)