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Separating the Political from the Economic: The Russia-Traffic in Transit Panel Report

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  • Pramila Crivelli
  • Mona Pinchis-Paulsen

Abstract

This paper reviews the World Trade Organization (WTO) Panel Report “Russia-Measures Concerning Traffic in Transit” of April 2019. It constitutes the first attempt to disentangle the legal and political aspects related to the invoked essential security interests from the economic considerations underlying the measures imposed on the transit through Russia of goods exported from Ukraine to the Republic of Kazakhstan and Kyrgyzstan. One the one hand, the Panel’s analytical framework for the interpretation of Article XXI of the GATT denied Members unilateral determination over the security exceptions. It further enables future WTO panels a pathway for reviewing possible abuses of the security exceptions, a growing concern with the rising complexity of transnational economic relations. On the other hand, our economic analysis suggests a stricter assessment of Russia’s transit restrictions was necessary to satisfy this framework. In particular, the economic analysis argues the Panel adopted a circular assessment when considering the plausibility of whether Russia implemented its measures for the protection of its essential security interests in time of emergency in international relations. Ultimately, the Panel's attention to finding a diplomatic and legal path forward failed economic scrutiny; still, a legal assessment argues that the Panel's findings fit the legal design of Article XXI:b of the GATT.

Suggested Citation

  • Pramila Crivelli & Mona Pinchis-Paulsen, 2021. "Separating the Political from the Economic: The Russia-Traffic in Transit Panel Report," RSCAS Working Papers 2012/14, European University Institute.
    • Handle: RePEc:rsc:rsceui:2012/14
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    References listed on IDEAS

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    1. Van den Bossche,Peter & Zdouc,Werner, 2017. "The Law and Policy of the World Trade Organization," Cambridge Books, Cambridge University Press, number 9781316610527, Enero-Abr.
    2. Irwin,Douglas A. & Mavroidis,Petros C. & Sykes,Alan O., 2008. "The Genesis of the GATT," Cambridge Books, Cambridge University Press, number 9780521515610.
    3. McKenzie,Francine, 2020. "GATT and Global Order in the Postwar Era," Cambridge Books, Cambridge University Press, number 9781108494892.
    4. Van den Bossche,Peter & Zdouc,Werner, 2017. "The Law and Policy of the World Trade Organization," Cambridge Books, Cambridge University Press, number 9781107157989, December.
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    Cited by:

    1. Bernard M. Hoekman & Petros C. Mavroidis & Douglas R. Nelson, 2023. "Geopolitical competition, globalisation and WTO reform," The World Economy, Wiley Blackwell, vol. 46(5), pages 1163-1188, May.

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    More about this item

    Keywords

    WTO; dispute settlement; national security; transit; trade barriers; Russia;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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