The most favoured nation (MFN) clauses in preferential trade agreements (PTAs) under GATT Article XXIV or under GATS Article V entrench the preferential trade relations between the PTA parties because the trade liberalization in future PTAs with third parties will be constrained by the existing PTA MFN clauses. Trade liberalization based on PTA MFN clauses cannot be considered part of the internal trade liberalization required by GATT Article XXIV:8 or GATS Article V:1. The exclusionary effects caused by trade liberalization through PTA MFN clauses increase the burden on trade with third parties. As a result, PTA MFN clauses do not meet the necessity test under the Appellate Body's decision in Turkey–Textiles, as reasonable alternatives to the PTA MFN clauses are available. For these reasons, PTA MFN clauses fail the requirements for legal defences under GATT Article XXIV or GATS Article V for their violations of the general MFN clauses under GATT Article I and GATS Article II. For those products or services subject to existing PTA MFN clauses, any preferential liberalization based on PTA MFN clauses should be accorded non-discriminatorily to all WTO members in accordance with GATT Article I or GATS Article II.

EC–Seal Products has been characterized as a contest between local moral preferences about animal welfare, on the one hand, and global commitments to trade disciplines on the other. But that description fails to take into account the development of international legal norms concerning animal welfare and their relevance to this case, as well as to other potential disputes involving animal welfare measures that affect trade. The international dimension of animal welfare implicates two ongoing debates in international trade law: what the relationship should be between WTO law and general international law, and the extent to which ‘public morals’ under Article XX(a) of GATT can be locally defined or need to be internationally shared. This Article examines the argument that there is a general principle of international law concerning animal welfare, and analyzes the role that international norms regarding animal welfare should play in EC–Seal Products.

In this paper we empirically examine the determinants on utilization of the Korea–ASEAN Free Trade Agreement (KAFTA) by employing a database provided by the Korea Customs and Trade Development Institute. We find that, although three effects, namely preferential margin (margin effect), rules of origin restrictiveness (ROO effect), and average export volume (scale effect), contribute to determining the utilization of the FTA, the scale effect has the greatest impact. Our results suggest that, since firms with relatively small volumes of trade are usually small and medium-size enterprises (SMEs), policy assistance for reducing administrative costs should be geared toward SMEs. Our results further indicate that policymakers should also try to negotiate more extensive tariff reductions on products not only where MFN rates are high but also where shipments are large.

China's accession to the WTO in 2001 is widely accepted as a landmark event for the multilateral trade system and for the country. The large-scale WTO-plus commitments have nevertheless received unceasing criticism and discussion. This article is concerned with the resulting policy implications for the Chinese initiative to become a global producer of large civil aircraft at the next stage of development. A real-life case study is expected to provide robust evidence for inquiring whether China and emerging economies alike can smoothly advance up the global value chain while honouring their WTO obligations in good faith. The article confirms the widespread opinion that there are vast legal uncertainties ahead for China throughout this journey, and for that reason, a rigorous market-orientation effort is needed to strengthen its ability to compete in the commercial aviation sector.

On 16 December 2011, Russia gained the approval of 153 other member states to join the World Trade Organization (WTO). During its arduous eighteen-year accession, Russian officials reformed a wide range of laws and policies that could affect trade.1 Russia made these changes because senior Russian officials believed that improved governance would pay off in greater foreign investment, and that investment in turn would stimulate economic growth.2 President Vladimir Putin acknowledged ‘countries compete in the attractiveness of their business climate … quality of state institutions and effectiveness of the court and legal system’. Ivan Tchakarov, chief economist at the Russian brokerage Renaissance Capital, asserted ‘By becoming a WTO member, Russia will have to import … rules and regulations that will address the very issues that foreign investors usually complain about, like corruption, the protection of minority shareholders, the independence of the judiciary.’3