New Developments in WTO jurisprudence on PPM-based Trade Measures: The Reports of the Panel and the Appellate Body in the Shrimp/Turtle-Case

Omar Ranne

Working Paper Series B from Friedrich Schiller University of Jena, School of of Economics and Business Administration

Abstract: Recently the Appellate Body of the World Trade Organization (WTO) confirmed the first-level panel's decision in the Shrimp-Turtle-case that certain U.S. regulations designed to protect endangered sea turtles do not satisfy the requirements of GATT Article XX. While arguably confirming the law itself that forbids the importation of shrimp from countries which permit shrimp harvesting without a specific technology, the Appellate Body faulted the U.S. on how it was implemented. Some observers argue that the ruling is a landmark decision that opens up the door for unilateral trade restrictions to pursue international environmental goals. This article will discuss the findings of the Appellate Body that differ substantially from previous dispute settlement practice and, in particular, from the findings of the first-level panel. I will argue that although the legal reasoning has changed significantly and seems to be more open to environmental concerns, the actual consequences for the GATT-conformity of unilateral trade measures might prove to be small. However, I will further argue that the WTO's scepticism should be welcomed, because the option to impose import bans for environmental purposes looks promising only at first sight, but will not seem so after close scrutiny.

Keywords: PPM-based Trade Measures; Dispute Settlement; World Trade Organization (search for similar items in EconPapers)
Date: 1999-02-01
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Persistent link: https://EconPapers.repec.org/RePEc:jen:jenavo:1999-01

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