Picking Tariff Winners: Non-Product Related PPMs and DSB Interpretations of 'Unconditionally' within Article I:1

Abstract

This paper proposes how WTO Members seeking a proportional increase in the consumption of “sustainable” ethanol can defend a unilaterally introduced tariff advantage for ethanol conditioned on green house gas emission life-cycle assessments. This explanation applies a WTO-contextual taxonomy of non-product-related process and production methods to argue that life-cycle assessments should not be interpreted as a prohibited PPM, and in fact are supported by the text of the WTO Preamble and the WTO Dispute Settlement Body’s flexible interpretations of “unconditionally.” The purpose of the paper is to advance an emerging view of GATT Article I:1’s most-favored-nation principle, and as such there is no reliance on derogations of the MFN principle found in the GATT Article XX exceptions or the Enabling Clause.

Keywords: MFN, Most favoured Nation, Article I:1, PPM, Non-Product Related PPMs, Ethanol