Decisions of the Appellate Body of the World Trade Organization

India-Quantitative Restrictions on Imports of Agricultural, Textile and Industrial Products

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Joel P. Trachtman

WTO Appellate Body Report: India-Quantitative Restrictions on Imports of Agricultural, Textile and Industrial Products, AB-1999-3, WT/DS90/AB/R (99-1329), adopted by Dispute Settlement Body, 22 September 1999. India, Appellant; United States, Appellee. Division: Ehlermann, El-Naggar and Matsushita. Major Topics Addressed by Appellate Body: Article XVIII:B, Understanding on the Balance-of-Payments Provisions of the GATT 1994; balance-of-payments justifications; scope of judicial review.

1. Abstract

This is a case of constitutional significance for the WTO, establishing the wide ambit of "judicial review," or at least of Dispute Settlement Body jurisdiction, including even matters that are also assigned to more political bodies within the WTO. This decision will have wide ramifications. India argued that jurisdiction over its balance-of-payments based quantitative restrictions was exclusively assigned to the Balance-of-Payments Committee and the General Council of the WTO, constraining the authority of the panel to review the balance-of-payments justification. The Appellate Body rejected this argument, upholding the panel finding that India's quantitative restrictions violate Article XI of GATT, and are not justified under Article XVIII:11 thereof.

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