Dragging Out of or Deeper into Another Impasse of the Political Economy of the World Trade Organization? A Critic of the Findings of the Dispute Settlement Body in European Communities-Conditions for the Granting of Tariff Preferences to Developing Countries

Abstract

The recent findings of the Appellate Body in EC-GSP highlights several inherent questions of the GSP which trigger a deeper reflection as to how S&D to developing countries may further be improved within the WTO and elsewhere. Apart from exposing issues inherent in GSP itself, the case also highlights the dilemma facing the Appellate Body. Like many other cases brought before it, the Appellate Body attempted once again to strike a delicate balance between competing interests, as well as endeavoured in reconciling law and politics. This paper discusses the dilemma facing the Appellate Body and by examining the evidence which comprises the context in the evolutionary history of the Enabling Clause, this paper argues that the Appellate Body erred in law in its findings, and the legal as well as political implications which flow from its findings not only failed in dismantling the current impasse of GSP but dragging deeper into it.

Keywords: trade and development, most-favoured-nation, preferences, generalized, non-reciprocal, non-discriminatory, special & differential treatment