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24 - How human rights violations nullify and impair GATS commitments

from PART 7 - Challenges to the scope of GATS and cosmopolitan governance in services trade

Published online by Cambridge University Press:  03 September 2009

Marion Panizzon
Affiliation:
Universität Bern, Switzerland
Nicole Pohl
Affiliation:
Universität Bern, Switzerland
Pierre Sauvé
Affiliation:
London School of Economics and Political Science, Universität Bern, Switzerland
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Summary

Introduction

Similarly to the United Nations, which considers gross human rights violations a threat to peace, the WTO should regard the effect of certain human rights violations as a restriction on multilateral trade liberalisation. Economic damage done to cross-border services trade by human rights restrictions results in the sending WTO Member no longer benefiting from the negotiated levels of the modal and sectoral commitments under GATS. Human rights violations may have a trade-restrictive effect when service suppliers, including investors, lose trading opportunities abroad. The DSU non-violation nullification and impairment instrument is the tool to redress the devaluation of a tariff reduction or of services market access commitment even in the absence of an outright violation of WTO treaty law. Thus, where a measure restricts human rights to the point that the violation affects and impairs mutually agreed GATS commitments, a non-violation type complaint offers a ground for legal action, not so much because non-WTO law has been violated, but because economic damage has been done. Some WTO Members may justify restricting the human rights of foreign service providers as being legitimate in terms of the security or public order exceptions to services liberalisation provided for in Article XIV GATS. In a twist on traditional human rights and trade doctrine, this chapter argues that protection of human rights is favourable to trade liberalisation.

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Publisher: Cambridge University Press
Print publication year: 2008

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