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Trade and the EnvironmentFundamental Issues in International Law, WTO Law, and Legal Theory$
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Erich Vranes

Print publication date: 2009

Print ISBN-13: 9780199562787

Published to Oxford Scholarship Online: May 2009

DOI: 10.1093/acprof:oso/9780199562787.001.0001

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Processes and Production Methods: A Special Case under the GATT and the TBT Agreement?

Processes and Production Methods: A Special Case under the GATT and the TBT Agreement?

(p.319) Chapter Three Processes and Production Methods: A Special Case under the GATT and the TBT Agreement?
Trade and the Environment

Erich Vranes

Oxford University Press

This chapter addresses the question of whether a WTO Member is allowed to introduce measures affecting trade in goods that are concerned with process and production methods which are not related to the goods concerned in the sense of bearing on their physical characteristics (‘non-product-related PPMs’). Taking into account relevant WTO dispute settlement decisions (US–Tuna, US–Shrimp), this chapter argues that non-product related PPM requirements, which are neither de jure nor de facto discriminatory, should be regarded as being consistent with Articles III and I of the GATT. It also submits that Appellate Body jurisprudence cannot be read as excluding justification of non-product-related PPMs under Article XX. The chapter then addresses border tax adjustment disciplines and process-based taxation, and process-based measures under the TBT Agreement. Finally, it examines the permissibility of process-based environmental labelling under GATT and TBT disciplines, arguing that such measures are not per se prohibited.

Keywords:   process and production methods, PPMs, non-product-related PPMs, border tax adjustment, process-based taxation, environmental labelling, GATT, TBT Agreement, Rio Declaration

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