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US – Shrimp: United States – Import Prohibition of Certain Shrimp and Shrimp Products: Recourse to Article 21.5 of the DSU by Malaysia*

  • Robert Howse and Damien J. Neven
Extract

This study discusses the ruling of the Appellate Body (AB) in the recourse to Article 21.5 of the DSU by Malaysia in the context of the US import prohibition of certain shrimp and shrimp products from a legal and economic perspective. The first part of the chapter (section 2) discusses the background of the case, and, in particular, presents the main issues at stake in the Panel and AB decisions in the original case as well as their main findings. Section 3 discusses the key elements of the compliance panel and its subsequent appeal and identifies a few issues that are discussed in further detail. In section 4, in the context of a simple model, we first consider the consequences of making imports contingent on the adoption of environmental measures in exporting countries. We find that the attractiveness of such measures depends heavily on the characteristics of abatement technology and the range of policies available in the exporting countries. Finally, section 5 briefly discusses the trade-off between flexibility in the imposition of environmental standards and the enforcement of dispute settlements’ rulings.

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Copyright
References
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Anderson, K. (2002), Peculiarities of retaliation in WTO dispute settlement, World Trade Review, 1(2), July.
Bhagwati, J. (2001).
Chang, H. (1997), Carrots, sticks and international externalities, International Review of Law and Economics, 17, 309324.
Howse, R. (2002), The Appellate body rulings in the Shrimp/turtle case: a new legal baseline for the trade and environment debate, Columbia Journal of Environmental Law, 27(2), 491521.
Howse, R. and Regan, D (2000). The Product/Process Distinction - An Illusory Basis for Disciplining “Unilateralism” in Trade Policy, European Journal of International Law, 11(1), 249283.
Ludema, R. and Wooton, I. (1994), Cross-border externalities and trade liberalization: the strategic control of pollution, The Canadian Journal ofEconomics, 27(4), 950966.
OECD (1999), Trade measures in multilateral environmental agreements, OECD, Paris.
Revesz, R. (2000), Federalism and regulation: extrapolating from the analysis of environmental regulation in the United States, Journal of International Economic Law, 219233.
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World Trade Review
  • ISSN: 1474-7456
  • EISSN: 1475-3138
  • URL: /core/journals/world-trade-review
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