The Consideration Of The Legality For Defensive Measures Under WTO

The release of the Report of the Panel and the Report of the Appellate Body to Argentina-Measures Relating to Trade in Goods and Service case in 2016,represents that WTO has the discretion over defensive measures,which contains the exchange of tax information as its main operation content.Defensive measures,which are promoted by OECD and G20,are the ways for countries to oppose the unjust-rich countries in harmful tax competition and to balance the world tax system.In Argentina-Measures Relating to Trade in Goods and Service,to maintain tax benefits,Argentina has announced a set of statutes from 2000.Those statutes divide other countries into"cooperating" ones and "non-cooperating" ones.To the foreign exchange,cooperation and other things in finance apartment from "non-cooperating" countries,the statutes impose more limitations.Hence,Panama raised disputes to WTO and declared that Argentina's statutes broke its duty under WTO.Argentina divided other countries,based on the country's tax information exchange situation and degree of the transparency of tax information.In fact,Argentina has referred to the standard of OECD and taken measures through domestic legal system against "tax heavens".In the reports,WTO has confirmed the purpose of defensive measures,which are made to keep balance of tax system.But WTO didn't give the clear answer to the question whether defensive measures are consistent.Therefore,I discussed the ambiguous answer on both concrete rules level and abstract value level.I try to give more perspective explanation on this question through bold assumption.After the reports of Argentina-Measures Relating to Trade in Goods and Service case,there were many articles analyzing the reports.But these articles most focused on the understanding and application of "general exceptions","prudential carve-out".There were few articles to read the reports through the conflicts between international trade law system and international finance law system.Also,few articles concerned about how defensive measures exist consistently under WTO.After stating the appearance,development and content of defensive measures,the article analyzes the reports and discloses the predicament met by defensive measures.Also,the article lists the rules in now WTO,which could be violated by defensive measures.Finally,the article works hard to make a best way for defensive measures in existing predicament.Defensive measures,though as the contradiction point of OECD and WTO,both represent a large law system behind,are necessary for many countries to safeguard tax benefits in near future.I think,the conflicts between OECD and WTO can't be solves totally,because of the differences between their purposed and the expansion of their power.In tax field,OECD and WTO make different choices based on their different value evaluation,so conflicts raise.Defensive measures,appearing for its own necessity and reasonableness,also have the possibilities to be consistent with WTO.I consider,to deal with problem,it is WTO to make a reasonable concession.WTO can create existing room for defensive measures through its explanations to the rules.Such concession also reflects how the solidified,large international trade law system should cooperate fresh,developing international finance law system.Otherwise,China should perform more actively in the silent conflicts,expanding influence and avoiding to let other countries to control the international finance system.