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They engage in de facto escape such as antidumping or countervailing duty actions, and risk losing the ensuing disputes see e. Another concern is the limited scope of existing de iure escape clauses. Numerous scholars have argued that de facto breaches of WTO obligations often occur because of the rigidity connected to the enactment of formal escape mechanisms, such as GATT Art.
As became clear in the course of the EC — Hormones case,14 the European Communities, for political or health reasons, wished to step back from a commitment they had made under the Agreement on Sanitary and Phytosanitary Measures SPS. This endeavor, however, is not considered in any formal WTO escape clause. In summary: while it is well-established that contractual escape mechanisms are an indispensable feature of multilateral trade agreements, it is the contention of many WTO pundits trade practitioners, international lawyers, economists, and international relations scholars 13 14 The US — Steel case, for example, patently revealed that Art.
In the course of this study we will show that the current system sets the wrong incentives for injurers, and undercompensates victims of escape. This situation may consequently lead, or already have led, to excessive breach, undercommitment less-than-ideal ex ante trade liberalization concessions by WTO Members, and an atmosphere of mistrust within the Organization. As a result, disgruntled and disillusioned Members have resorted to retaliatory strategies within and outside the realm of the WTO e.
Figure 1. GATT Art.