Published online by Cambridge University Press: 06 March 2019
Judicial lawmaking in the GATT/WTO context has for some time drawn considerable attention. Some are inclined to show a sense of existentialist anxiety in view of the fact that legal practice does not neatly live up to the orthodox doctrinal order of things. Others see judicial lawmaking as (theoretically or practically) inevitable and tend to readily embrace it as a way of overcoming defunct political processes. Whatever its normative appraisal, as a matter of fact adjudicatory practice has developed some of trade law's cardinal norms. The rise and increasing sophistication of adjudication in the GATT/WTO context has also gone hand in hand with a surge of authority on the part of adjudicators and a larger overall detachment of the law from politico-legislative politics.
1 Good contributions on this issue are usually more nuanced, but still come with diverging emphases along these lines. See, e.g., Joel P. Trachtman, The Domain of WTO Dispute Resolution, 40 Harvard International Law Journal 333 (1999) (portraying judicial lawmaking as a matter of fact); Armin von Bogdandy, Law and Politics in the WTO -Strategies to Cope with a Deficient Relationship, 5 Max Planck Yearbook of United Nations Law 609 (2001) (canvassing different understandings and looking above all at attempts for dealing with legitimatory implications); Lorand Bartels, The Separation of Powers in the WTO: How to Avoid Judicial Activism?, 53 International and Comparative Law Quarterly 861 (2004); Steinberg, Richard H., Judicial Lawmaking at the WTO: Discursive, Constitutional, and Political Constraints, 98 AJIL 247 (2004); Howse, Robert, Moving the WTO Forward - One Case at a Time, 42 Cornell International Law Journal 223 (2009) (pointing to a number of instances where adjudicators advanced the law in view of political deadlock).Google Scholar
2 Bogdandy, Armin von & Venzke, Ingo, Beyond Dispute: International Judicial Institutions as Lawmakers, in this issue. The project follows a broad understanding of “court” that includes judicial institutions in the GATT/WTO. There are formal differences such as that they only make recommendations and do not decide cases. But by now and in view of the real-life practices of these institutions there should be little squabble with this denomination. Cf. Claus-Dieter Ehlermann, Six Years on the Bench of the “World Trade Court” – Some Personal Experiences as Member of the Appellate Body of the World Trade Organization, 36 Journal of World Trade 605 (2002).Google Scholar
3 The test was one akin to something like “legitimate expectations”, known from contract law. See Working Party Report, The Australian Subsidy on Ammonium Sulphate, GATT/CP.4/39, 3 April 1950, BISD II/188; GATT Panel Report, Treatment by Germany of Imports of Sardines, G/26, 31 October 1952, BISD 1S/53.Google Scholar
4 GATT Panel Report, Uruguayan Recourse to Article XXIII, L/1923, 16 November 1962, BISD 11S/95. Cf. with illuminating detail Arwel Davies, The DSU Artilce 3.8 Presumption That an Infringement Constitutes a Prima Facie Case of Nullification or Impairment: When Does it Operate and Why?, 13 Journal of International Economic Law 181 (2010).Google Scholar
5 Jackson, John H., Sovereignty, the WTO and Changing Fundamentals of International Law 143 (2006). See GATT Panel Report, United States - Taxes on Petroleum and Certain Imported Substances, L/6175, 17 June 1987, BISD 34S/136.Google Scholar
6 Jackson (note 5), 82.Google Scholar
7 With a fresh look on the working of precedents, see Marc Jacob, Precedents: Lawmaking Through International Adjudication, in this issue.Google Scholar
8 Hudec, Robert, Enforcing International Trade Law. The Evolution of the Modern GATT Legal System 4-5 (1993). It should be noted, however, that the GATT of 1947 was modified with the Final Act of the Uruguay Round in 1994.Google Scholar
9 Hudec, Robert, The GATT Legal System: A Diplomat's Jurisprudence, 4 Journal of World Trade 615 (1970).Google Scholar
10 Benedek, Wolfgang, Die Rechtsordnung des GATT aus völkerrechtlicher Sicht 232-236 (1990); Hudec (note 8), 9.Google Scholar
11 Weiler, Joseph H. H., The Rule of Lawyers and the Ethos of Diplomats. Reflections on the Internal and External Legitimacy of WTO Dispute Settlement, 35 Journal of World Trade 191 (2001); Howse, Robert, From Politics to Technocracy - and Back Again: The Fate of the Multilateral Trading Regime, 96 AJIL 94 (2002).Google Scholar
12 Nettesheim, Martin, Von der Verhandlungsdiplomatie zur internationalen Wirtschaftsordnung: Zur Entwicklung des internationalen Wirtschaftsrechts, 19 Jahrbuch für Neue Politische Ökonomie 48, 54 (2000).Google Scholar
13 On the last point, see Joseph H. H. Weiler, Law, Culture, and Values in the WTO - Gazing into the Crystal Ball, in: The Oxford Handbook of International Trade Law, 749, 758 (Daniel L. Bethlehem, Donald RcRae, Rodney Neufeld & Isabelle Van Damme eds, 2009) (noting that “the material and conceptual contours of the discipline of national treatment not only remain contested but are, par excellence, the creature of legal discourse”).Google Scholar
14 I have deliberately left aside the considerable jurisprudence and commentary on the well-known intricacies in determining “likeness”. On the stages of legal analysis at which a policy's aim may come into consideration, see Jan Wouters & Bart De Meester, The World Trade Organization 52-54 (2007); Weiler (note 13).Google Scholar
15 Ruggie, John G., International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order, 36 International Organization 379 (1982). See also his seminal International Responses to Technology: Concepts and Trends, 29 International Organization 557 (1975). Cf. Weiler (note 11), 194-195; Howse (note 11), 99.Google Scholar
16 Howse (note 11), 99.Google Scholar
17 Hudec (note 8); Daniel Bodansky & Jessica C. Lawrence, Trade and Environment, in: The Oxford Handbook of International Trade Law, 505, 508 (Daniel L. Bethlehem, Donald RcRae, Rodney Neufeld & Isabelle Van Damme eds, 2009).Google Scholar
18 GATT Panel Report, United States - Prohibition of Imports of Tuna and Tuna Products from Canada, L/5198, 22 February 1982, BISD 29S/91.Google Scholar
19 Id., para. 2.1.Google Scholar
20 Id., para. 4.15.Google Scholar
21 Id., para. 3.4.Google Scholar
22 Id., paras 3.15 & 4.1.Google Scholar
23 GATT Panel Report, Canada - Measures Affecting Exports of Unprocessed Herring and Salmon, L/6268, 22 March 1988, BISD 35S/98.Google Scholar
24 Id., para. 4.6.Google Scholar
25 Id., para. 4.7.Google Scholar
26 Cf. Trebilcock, Michael J. & Howse, Robert, The Regulation of International Trade 516-518 (2005); Charnovitz, Steve, Exploring the Environmental Exceptions in GATT Article XX, 25 Journal of World Trade 37, 50 (1991).Google Scholar
27 In the Matter of Canada's Landing Requirement for Pacific Coast Salmon and Herring, Final Report, 16 October 1989, paras 7.04-7.05.Google Scholar
28 Id., paras 7.04-7.11 & 7.38.Google Scholar
29 Panel Report, US - Standards for Reformulated and Conventional Gasoline, WT/DS2/R, 29 January 1996, para. 6.40.Google Scholar
30 Appellate Body Report, US - Standards for Reformulated and Conventional Gasoline, WT/DS2/AB/R, 29 April 1996, 16. See further infra notes 57-63 and accompanying text.Google Scholar
31 GATT Panel Report, United States Section 337 of the Tariff Act of 1930, L/6439, 7 November 1989, BISD 36S/345, para. 5.26.Google Scholar
32 GATT Panel Report, Thailand - Restrictions on Importation of and Internal Taxes on Cigarettes, DS10/R, 7 November 1990, BISD 37S/200, para. 75.Google Scholar
33 GATT Panel Report, United States - Restrictions on Imports of Tuna, DS21/R, 3 September 1991, unadopted, BISD 39S/155. One issue that has to be sidestepped here, but which is of curial significance generally, is the delineation of Art. XI dealing with quantitative restrictions from Art. III concerning internal regulations.Google Scholar
34 GATT Panel Report, United States - Restrictions on Imports of Tuna, DS21/R, 3 September 1991, unadopted, BISD 39S/155, para. 5.25 (italics added).Google Scholar
35 Id., para. 5.27.Google Scholar
36 Id., para. 5.28.Google Scholar
37 Id., para. 5.31-5.33.Google Scholar
38 For an overview that relates opinions to overall outlooks on the working of international law, see Benedict Kingsbury, The Tuna-Dolphin Controversy, the World Trade Organization, and the Liberal Project to Reconceptualize International Law, 5 Yearbook of International Environmental Law 1 (1994).Google Scholar
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40 Decision on Trade and Environment, adopted by ministers at the meeting of the Uruguay Round Trade Negotiations Committee in Marrakesh, 14 April 1994.Google Scholar
41 The Doha Declaration invested the CTE with a renewed mandate, Doha Ministerial Declaration, WT/MIN(01)/DEC/1, 20 November 2001, paras 31-33. Little progress could be made. What the CTE indeed does, is to draft notes on Art. XX that summarize the pertinent case law and pay close lip service to the panel and Appellate Body reports. They barely add a single word of genuine assessment or direction, see, e.g., Committee on Trade and Environment, GATT/WTO Dispute Settlement Practice relating to GATT Art XX, paragraphs (b), (d) and (g), Note by the Secretariat, WT/CTE/W/203, 8 March 2002.Google Scholar
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46 Dispute Settlement Body, Establishment of the Appellate Body, 19 June 1995, Decision of 10 February 1995, WT/DSB/1, paras 11-12.Google Scholar
47 Van den Bossche (note 44). See further Hélène Ruiz Fabri, Le juge de l'OMC: Ombres et lumières d'une figure judiciaire singulière, 110 Revue Générale de Droit International Public 39 (2006).Google Scholar
48 Van den Bossche (note 44).Google Scholar
49 Cf. Klabbers, Jan, On Rationalism in Politics: Interpretation of Treaties and the World Trade Organization, 74 Nordic Journal of International Law 405 (2005) (offering a discussion of this qualification that borders on superb parody).Google Scholar
50 Appellate Body Report, Chile - Taxes on Alcoholic Beverages, WT/DS87 and 110/AB/R, 13 December 1999, para. 79 (noting that “we have difficulty in envisaging circumstances in which a panel could add to the rights and obligations of a Member of the WTO if its conclusions reflected a correct interpretation and application of provisions of the covered agreements”).Google Scholar
51 Appellate Body Report, Japan - Taxes on Alcoholic Beverages, WT/DS 8, 10 and 11/AB/R, 4 October 1996, 14–15. Cf. Panel Report, United States - Use of Zeroing in Anti-Dumping Measures Involving Products from Korea, WT/DS402/R, 18 January 2011, para. 7.59.Google Scholar
52 Id., 15; quoting Panel Report, Japan - Taxes on Alcoholic Beverages, WT/DS8, 10 and 11/R, 11 July 1996, para. 6.10.Google Scholar
53 Appellate Body Report, United States - Sunset Reviews of Anti-Dumping Measures on Oil Country Tubular Goods from Argentina, WT/DS268/AB/R, 17 December 2004.Google Scholar
54 Appellate Body Report, United States - Final Anti-Dumping Measures on Stainless Steel from Mexico, WT/DS344/AB/R, 30 April 2008, para. 162; Appellate Body Report, United States - Continued Existence and Application of Zeroing Methodology, WT/DS350/AB/R, 4 February 2009, paras 362-365. Cf. Appellate Body Report, United States - Sunset Reviews of Anti-Dumping Measures on Oil Country Tubular Goods from Argentina, WT/DS268/AB/R, 29 November 2004, para. 188 (“following the Appellate Body's conclusions in earlier disputes is not only appropriate, but is what would be expected from panels, especially where the issues are the same”).Google Scholar
55 Id., para. 162. The claim would be that panels fail to conduct an “objective assessment” of the matter before them as is required by Art. 11 DSU.Google Scholar
56 Report, Panel, US - Gasoline (note 29), para. 6.28.Google Scholar
57 Id., para. 6.40.Google Scholar
58 Appellate Body Report, US - Gasoline (note 30), 16-17.Google Scholar
59 Id., 19.Google Scholar
60 Id., 22.; cf. Rüdiger Wolfrum, Article XX GATT 1994, General Exceptions [Chapeau], in: 2 Max Planck Commentaries on World Trade Law, 66 (Rüdiger Wolfrum, Peter-Tobias Stoll & Karen Kaiser eds, 2006), margin numbers 8-12.Google Scholar
61 Appellate Body Report, US - Gasoline (note 30), 22. In concrete cases the distinction between the two may be far from evident.Google Scholar
62 Id., 17.Google Scholar
63 Cf. Driesen, David, What is Free Trade? The Real Issue Lurking Behind the Trade and Environment Debate, 41 Virginia Journal of International Law 279, 306 (2001).Google Scholar
64 Panel Report, United States - Import Prohibition of Certain Shrimp and Shrimp Products, WB/DS58/R, 15 May 1998, para. 7.53.Google Scholar
65 Id., paras 7.44 & 7.60.Google Scholar
66 Id., paras 7.31-7.62.Google Scholar
67 Appellate Body Report, United States - Import Prohibition of Certain Shrimp and Shrimp Products, WB/DS58/AB/R, 12 October 1998.Google Scholar
68 Id., para. 114.Google Scholar
69 Id., paras 116, 117 & 121.Google Scholar
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72 Id., paras 152-154 (citing ample evidence from the Uruguay negotiations in support). Cf. Robert Howse, The Appellate Body Rulings in the Shrimp/Turtle Case. A New Legal Baseline for the Trade and Environment Debate, 27 Columbia Journal of Environmental Law 491 (2002).Google Scholar
73 Appellate Body Report, US - Shrimp (note 67), paras 161-176.Google Scholar
74 Id., paras 177-184.Google Scholar
75 Id., para. 121.Google Scholar
76 Id., para. 133.Google Scholar
77 Appellate Body Report, United States - Import Prohibition of Certain Shrimp and Shrimp Products (Article 21.5), WB/DS58/AB/R, 22 October 2001, para. 138.Google Scholar
78 Trebilcock & Howse (note 26), 532.Google Scholar
79 Appellate Body Report, European Communities - Measures Affecting Asbestos and Products Containing Asbestos, WT/DS135/AB/R, 12 March 2001.Google Scholar
80 José E. Alvarez, International Organizations as Law-Makers 472 (2005).Google Scholar
81 Appellate Body Report, US - Gasoline (note 30), 22; Appellate Body Report, US - Shrimp (note 67), para. 151.Google Scholar
82 Appellate Body Report, US - Shrimp (note 67), para. 158.Google Scholar
83 Id., para. 159.Google Scholar
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85 Kumm, Matthias, Constitutional Rights as Principles: On the Structure and Domain of Constitutional Justice, 2 International Journal of Constitutional Law 574 (2004) (suggesting to think of proportionality as an analytical structure for striking such balance); cf. Thomas Kleinlein, Judicial Lawmaking by Judicial Restraint? The Potential of Balancing in International Economic Law, in this issue.Google Scholar
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87 Appellate Body Report, United States - Transitional Safeguard Measure on Combed Cotton Yarn from Pakistan, WT/DS192/AB/R, 8 October 2001, paras 120 & 122. See also Appellate Body Report, United States - Definitive Safeguard Measures on Imports of Circular Welded Carbon Quality Line Pipe from Korea, WT/DS202/AB/R, 15 February 2002, paras 257-259. Cf. Andrew D. Mitchell, Proportionality and Remedies in WTO Disputes, 17 EJIL 985 (2006); Sebastian, Thomas, World Trade Organization Remedies and the Assessment of Proportionality: Equivalence and Appropriateness, 48 Harvard International Law Journal 337 (2007).Google Scholar
88 See Desmedt, Axel, Proportionality in WTO Law, 4 Journal of International Economic Law 441 (2001) (offering an overview and comparison of the fields of trade law where proportionality has or might become relevant).Google Scholar
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91 Id., para. 161.Google Scholar
92 Id., para. 162.Google Scholar
93 Id., para. 164 (italics added).Google Scholar
94 Id., para. 166.Google Scholar
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96 Id., para. 178 (italics added).Google Scholar
97 Id., para. 179; referencing Panel Report, Korea - Measures Affecting Imports of Fresh, Chilled and Frozen Beef, WT/DS161 and 169/R, 31 July 2000, para. 675.Google Scholar
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100 Id., para. 172 (interestingly, however, it omitted in relation to its earlier findings that the impact on trade was a relevant factor).Google Scholar
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123 Feichtner, Isabel, The Waiver Power of the WTO: Opening the WTO for Political Debate on the Reconciliation of Public Interests, 20 EJIL 615 (2009).Google Scholar
124 See Kleinlein (note 85).Google Scholar
125 This has of course been done to a considerable extent; yet there remain large areas not only of disagreement but also of uncertainty and lack of empirical as well as conceptual clarification.Google Scholar