Decisions of the Appellate Body of the World Trade Organization

Turkey-Restrictions on Imports of Textile and Clothing Products

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Joel P. Trachtman

WTO Appellate Body Report: Turkey-Restrictions on Imports of Textile and Clothing Products, AB-1999-5, WT/DS34/AB/R, (99-4546), adopted by Dispute Settlement Body, 19 November 1999. Turkey, Appellant; India, Appellee; Third Participants: Hong Kong, China; Japan; and the Philippines. Division: Beeby, Bacchus and El-Naggar. Major Topics Addressed by Appellate Body: Article XXIV of GATT 1994; Understanding on the Interpretation of Article XXIV of the General Agreement on Tariffs and Trade 1994; Customs Unions.

1. Abstract

This decision represents the first time that the Appellate Body has been called upon to interpret Article XXIV of GATT 1994, and the related Understanding on the Interpretation of Article XXIV of the General Agreements on Tariffs and Trade 1994 (the "Understanding"). Turkey imposed quantitative restrictions on textiles and clothing from India in connection with the formation of a customs union with the European Communities ("EC"). Turkey argued that Article XXIV provides an exemption for such action, and that the panel had no jurisdiction to examine its actions in forming a customs union.

The Appellate Body found that the panel erred in failing to examine the definition of a customs union contained in Article XXIV in order to determine what exemptions are necessary to permit the formation of a customs union. The Appellate Body developed a necessity test to determine whether measures that would violate other provisions of GATT 1994 are permitted under Article XXIV. The Appellate Body also indicated, in line with its decision in India-- Quantitative Restrictions on Imports of Agricultural, Textile and Industrial Products, that panels have jurisdiction to consider matters that are also committed to political bodies. It found that the Turkish quantitative restrictions did not qualify for an exemption under Article XXIV, and therefore that they violate Articles XI and XIII of GATT 1994, as well as Article 2.4 of the Agreement on Textiles and Clothing.

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