Leibowitz on Trade: Are Trade Restrictions for National Security Reasons Subject to WTO Dispute Settlement?

Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington:

On April 5, the WTO issued a long-awaited Panel decision in a dispute settlement case between Russia and Ukraine. Ukraine complained that Russia interfered with Ukrainian trade flows by restricting the routes that goods could travel. Russia argued in its defense that it was facing an “emergency in international relations” and relied on Article XXI(b)(iii) of the General Agreement on Tariffs and Trade (GATT) to justify its trade restrictions on Ukraine. Russia argued (and was supported by the United States) that a declaration of national security is not reviewable by the WTO; each WTO member has the sole authority to act on what it perceives to be its national security interests. Ukraine (supported by many countries) argued that the WTO had the authority under the GATT to evaluate whether a country had a basis to claim national security.