On The Application Of GATT General Exceptions

Article20of GATT1994sets forth10limited exceptions, in the limitedcircumstances, Members are permitted to act inconsistently with their GATTobligations in order to pursue certain designated policies. Under these situations, ameasure which violates GATT1994can be justified. The text of Article20isambiguous, hard to be interpreted only through the text itself. The meaning of Article20has been clarified by the DSB in various cases. Sub-paragraph (b)(d)(g) are mostfrequently invoked, and (a) has been applied in two cases, whereas the others havenot been mentioned at all. In those cases, the DSB has established a two-tieredapproach of analysis:(1) it must be determined whether the measure at issue fallswithin one of the listed exceptions;(2) if so, then exam whether the measure satisfiesthe terms of the chapeau. While evaluating the availability of Article20, the DSUhas addressed general interpretation of the article.In the past few years, China’s participation in world trade has been moresignificant, the concept of sustainable development processes, it is observed that theuse of Article20has up-soared. The very issue China faces now is whether Article20can be invoked to justify the act inconsistent with Chinese obligations underAccession Protocol. The DSB seems to follow such an approach that Article can onlybe invoked when there is express wording of the availability. This will definitelydevastate Chinese sovereignty and economy. In fact, the structure of the WTOagreement, the legal character and status of Accession Protocol, and the values andpolicies pursued in Article20, has all confirmed that Article20is applicable toAccession protocol. Besides, the DSB has erred to act paradoxically with theAccession Protocol: the Accession Protocol is suited and recommended upon, but itsimply can’t be a covered agreement.In China–Rare Earth, China has to fight its own corner so that Article20can beapplied. At the same time, China ought to change its measure at issue, avoid exportduties. It’s also recommended that China be more participant in the reform of WTOsystem, especially mending the promises of export duty in Accession Protocol toGATT Schedule of Concession and Commitments.