General exceptions
General exceptions: the GATS (Article XIV) and the GATT (Article XX) give WTO members the right not to apply the provisions of these agreements in specified circumstances. But these articles may not be invoked to discriminate between countries or as a disguised restriction to international trade. Under the GATT, this right may be used, to the extent that it is necessary to do so, in order (a) to protect public morals, (b) to protect human, animal or plant life or health, (c) to cover trade in gold and silver, (d) to ensure compliance with laws and regulations otherwise consistent with the GATT, customs enforcement, enforcement of monopolies, the protection of intellectual property rights and prevention of deceptive practices, (e) to deal with products made by prison labour, (f) to protect national treasures of artistic, historic or archaeological value, (g) to conserve exhaustible natural resources, but only in combination with domestic restrictions on production and consumption, (h) to pursue obligations under international commodity agreements, (i) to restrict exports of domestic materials under strictly defined conditions, and (j) to adopt measures essential for the acquisition or distribution of products in general or local short supply. The GATS, apart from identical provisions on public morals and human, animal and plant life, also mentions public order in cases of genuine and sufficiently serious threat to one of the fundamental interests of society. Its other exceptions cover compliance with laws and regulations not inconsistent with GATS rules, collection of direct taxes and double taxation agreements. See also security exceptions.
Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf
Web site to visit: http://ctrc.sice.oas.org
Author of the text: W. Goode
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