Chapter 5. The Subject Matter of Article XX(s) and (G)

Abstract

General Agreement on Tariffs and Trade (GATT) Article XX sets out fields of regulation in which World Trade Organization (WTO) members are free to employ trade measures that would otherwise be inconsistent with GATT obligations. This chapter shows how Organisation for Economic Co-operation and Development (OECD) conceptual framework can be applied to clarify the relationship between paragraphs XX (b) and XX (g), and to advance the jurisdictional analysis under Article XX. The OECD conceptual framework categorizes trade measures related to processing and production methods (PPMs) based on (1) the proximity of interest between the country taking the trade measure and the environmental resource being protected, and (2) the location of the targeted producers of the product. Article XX plays the key role of determining when trade measures which are otherwise inconsistent with GATT obligations may be used to implement policy choices made in other fields of regulation.Keywords: Article XX; GATT obligation; jurisdictional analysis; OECD conceptual framework; World Trade Organization (WTO)