Law And Polici Of Wto

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The Law and Policy of the World Trade Organization
This is primarily a textbook for graduate and upper-level undergraduate students of
law; however, practising lawyers and policy-makers who are looking for an introduction to WTO law will also find it invaluable. The book covers both the institutional and substantive law of the WTO. While the treatment ofthe law is quite
detailed, the main aim of this textbook is to make clear the basic principles and
underlying logic of WTO law and the world trading system. Each section contains
questions and assignments, to allow students to assess their understanding and
develop useful practical skills. At the end of each chapter, there is a helpful summary
as well as an exercise on specific, true-to-lifeinternational trade problems.
P E T E R V A N D E N B O S S C H E is Professor of International Economic Law, Head of the
Department of International and European Law and Director of Studies of the
Magister Iuris Communis programme at Maastricht University, The Netherlands.
He studied law at the University of Antwerp (Lic. jur.), the University of Michigan
(LLM) and the European UniversityInstitute, Florence (Dr jur.). From 1997 to 2001,
Peter Van den Bossche was Counsellor to the Appellate Body of the WTO, Geneva.
In 2001 he served as Acting Director of the Appellate Body Secretariat.

The Law and Policy
of the World Trade
Organization
Text, Cases and Materials
Peter Van den Bossche
Maastricht University

cambridge university press
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Cambridge University Press
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Published in the United States of America by Cambridge University Press, New York
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Information on this title: www.cambridge.org/9780521822909
© Peter Van den Bossche 2005
This publication is in copyright. Subject to statutory exception and to the provision ofrelevant collective licensing agreements, no reproduction of any part may take place
without the written permission of Cambridge University Press.
First published in print format 2005
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Contents

List of figures x
List of tables xii
Preface and acknowledgments xiii
Table of cases xvi
Table ofagreements and decisions xxvii

1 ECONOMIC GLOBALISATION AND
THE LAW OF THE WTO 1
1.1. Introduction 1
1.2. Economic globalisation and international trade 3
1.2.1.
1.2.2.
1.2.3.
1.2.4.

The emergence of the global economy 3
Economic globalisation: a blessing or a curse? 11
Trade liberalisation versus protectionism 19
Globalisation and trade to the benefit of all? 29

1.3.International trade and the law of the WTO
1.3.1.
1.3.2.

35

International rules for international trade 35
Basic rules and principles of WTO law 39

1.4. Sources of WTO law 44
1.4.1.
1.4.2.

The Marrakesh Agreement Establishing the World Trade
Organization 45
Other sources of WTO law 55

1.5. WTO law in context 60
1.5.1.
1.5.2.

WTO law and international law 60
WTO law and nationallaw 65

1.6. Summary 72
1.7. Exercise: Globaphiles versus globaphobes 74

2 THE WORLD TRADE ORGANIZATION

76

2.1. Introduction 77
2.2. The origins of the WTO 78
2.2.1.
2.2.2.

The General Agreement on Tariffs and Trade 1947 78
Uruguay Round of Multilateral Trade Negotiations 83

2.3. Mandate of the WTO 86
v

vi

Contents
2.3.1.
2.3.2.

Objectives of the WTO 86...