International Legal Structure

AuthorJon R. Johnson
Pages21-51
CHAPTER
1
INTERNATIONAL
LEGAL
STRUCTURE
The
purpose
of
this
chapter
is to
describe
in
general terms
the two
major
trade agreements
by
which Canada
is
bound, namely
the WTO
Agree
ment
and
NAFTA.
CIFTA
and
CCFTA will also
be
briefly
described.
The
chapter will then
set out
guidelines
to be
followed
in
interpreting inter-
national agreements
and
will
discuss
how the WTO
Agreement,
NAFTA,
CIFTA,
and
CCFTA relate
to
each other
and to
other international
agreements.
A. THE WTO
AGREEMENT
The WTO
Agreement
is an
umbrella agreement that establishes
the
World
Trade Organization (WTO)
and
sets
out,
in
four
annexes,
a
series
of
agree-
ments
and
understandings that contain
the
substantive obligations
of the
member countries respecting trade
in
goods, trade
in
services,
and
intel-
lectual
property
rights.1
The
fifteen
agreements
set out in
Annexes
1A,
IB,
and 1C are
referred
to as
"Multilateral Agreements." Unlike
the
Tokyo
Round
codes that bound only
GATT
members that accepted them, each
1 As
discussed below,
the
annexes
to the
Agreement
Creating
the
World Trade
Organization,
15
April 1994 (Dobbs Ferry,
N.Y.:
Oceana Publications, 1997) [WTO
Agreement]
set out
agreements
and
understandings covering
a
variety
of
matters.
In
this book,
the
expression "WTO
Agreement"
means
the
Agreement
Creating
the
World Trade
Organization
while
the
expression "WTO agreements" means
the
agreements
and
understandings
set out in the
four
annexes
to the WTO
Agreement.
21
22
INTERNATIONAL
TRADE
LAW
Multilateral
Agreement
binds
all WTO
members.2
Annex
2
sets
out a
dis-
pute settlement process
and
institutional structure
in the
Understanding
on
Rules
and
Procedures
Governing
the
Settlement
of
Disputes.
Annex
3
sets
out a
Trade
Policy
Review
Mechanism
providing
for
periodic
review
of the
trade
policies
and
practices
by a
Trade Policy Review Body. Annex
4
con-
tains
four
additional agreements referred
to as
"Plurilateral Agreements,"
which bind only member countries that accept them. These agreements
and
understandings
are
amplified
by
decisions
and
declarations
included
in the
Final
Act
that
was
adopted
by the WTO
member countries
in
Mar-
rakesh, Morocco,
on 15
April 1994. Members
are
obliged
to
ensure that
their laws, regulations,
and
administrative procedures conform with
the
obligations
set out in the
agreements
in the
annexes.3
The WTO
Agreement itself covers various institutional matters
respecting
the WTO and
sets
out
procedures
for
amendment, accession
by
new
members,
and
withdrawal.
1)
Annex
1A:
Multilateral Agreements
on
Trade
in
Goods
Annex
1A of the WTO
Agreement sets
out
thirteen agreements that deal
with various
aspects
of
trade
in
goods.
The
first Multilateral Agreement
in
Annex
1A
is the
1994 (GATT
1994), which carries forward, with some modifications,
the
principles
established
by
GATT
1947.
The
remaining twelve agreements
in
Annex
1A
elaborate
on
various
aspects
of
GATT 1994.
Two of
these
agreements
cover
particular sectors, namely agriculture
and
textile
and
apparel
goods, while
the
remaining
ten
agreements cover particular topics.
a)
GATT 1994
i)
Contents
GATT
1994 consists
of
GATT 1947,
as
amended
and
modified since that
time
and as
further
modified
by
understandings
set out in
GATT
1994.4
GATT
1994 also includes protocols
and
certifications that contain
the
2
Art.
XIII
of the WTO
Agreement,
ibid.,
provides
for the
non-application
of the WTO
Agreement
and the
Multilateral Agreements between particular members
under
some
circumstances.
Canada
has not
made
use of
this provision.
3 WTO
Agreement,
ibid.,
art.
XVI:4.
4 See the
understandings respecting arts.
II: 1 (b)
(relating
to
tariff
concessions),
XVII
(state
enterprises),
XII and
XVIII:B
(balance
of
payments),
and
XXVIII
(modification
or
withdrawal
of
concessions)
of the
General
Agreement
on
Tariffs
and
Trade,
30
October 1947, Can. T.S. 1947
No. 27, 55
[GATT
1947].
There
is
also
an
understanding respecting waivers.

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