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Good points all, Lothar. Mexico is in a different situation here from other WTO Members - per the FTA it is legally entitled to be either excluded or fully compensated from Day 1 (ie, without the 3 year grace period). And it would not need to use WTO procedures to exercise an FTA-based right.
As you note, rights are not always exercised. But governments sometimes go to great lengths, eg by using DS systems, to acquire the right to suspend concessions. I don't think it is very common for existing/undisputed suspension-of-concession rights to go unutilized and even un-mentioned for years at a time, as is happening now.
How broadly is it happening? Other commenters might know. The US solar safeguard case, where numerous WTO Members have been cozily sleeping on their rights for nearly 4 years, is a pretty significant instance and maybe not a unique one. If a key design element of the UR compromise on safeguards is, for whatever reason, simply falling out of use, I do think that is noteworthy.
Safeguards Without Compensation -- A New Normal?
Mexico’s push for exclusion from the United States’ solar safeguard measure, which jumped into the news this week, raises a point of potential interest for the IELP Blog audience. The escape clause / efficient breach theory of safeguards holds that a WTO Member can temporarily retract a trade co...
Safeguards Without Compensation -- A New Normal?
Mexico’s push for exclusion from the United States’ solar safeguard measure, which jumped into the news this week, raises a point of potential interest for the IELP Blog audience. The escape clause / efficient breach theory of safeguards holds that... Continue reading
Posted Jul 17, 2024 at International Economic Law and Policy Blog
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Another Thing Spiking in 2022 America: Harm to the WTO
Friends of the World Trade Organization (WTO) experienced some distress during the US government’s 2017-2020 cycle. They did not expect American disrespect for the WTO and its rules to reach a new, much-higher watermark in the current cycle. But that... Continue reading
Posted Sep 29, 2022 at International Economic Law and Policy Blog
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What Is Section 421?
Am placing here, as a new post, part of a comment that otherwise would have been stuck under the wrong heading (antidumping). At issue was a piece in The Economist about the Tires 421 result. What I found interesting in... Continue reading
Posted Sep 30, 2009 at International Economic Law and Policy Blog
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