HO CHI MINH CITY UNIVERSITY OF LAW MANAGING BOARD OF SPECIAL TRAINING PROGRAMS BACHELOR’S THESIS REGULAR TRAINING PROGRAM COURSE 35 (2010 – 2014) EXCEPTION IN ACCORDANCE WITH ARTICLE XXIV OF GATT: “REGIONALISM” IN THE MULTILATERAL TRADING SYSTEM Student : LÊ NGỌC QUỲNH ANH Student ID : 1055050010 Class : CLC35 Supervisor : Dr TRẦN THỊ THUỲ DƯƠNG HO CHI MINH CITY, 2014 AFFIRMATION I hereby affirm that this thesis is my own work under the instruction of my supervisor, Dr Trần Thị Thùy Dương The research results have not been published anywhere else Ho Chi Minh City, July 2014 Lê Ngọc Quỳnh Anh LIST OF ABBREVIATIONS ASEAN The Association of South-East Asia Nations ASEAN-Japan RTA Agreement on Comprehensive Economic Partnership among Japan and the Member States of the Association of the Southeast Nations dated 03 April 2008 Enabling Clause Decision of 28 November 1979 on Differential and More Favorable Treatment Reciprocity and Fuller Participation of Developing Countries GATT 1994 General Agreement on Tariffs and Trade 1994 GATS General Agreement on Trade in Services 1994 Japan-Vietnam RTA Agreement between Japan and the Socialist Republic of Vietnam for an Economic Partnership dated 25 December 2008 MFN Most-favored-nation NAFTA North America Free Trade Area ORC Other regulations of commerce ORRC Other restrictive regulations of commerce RTA Regional Trade Agreement Transparency General Council Decision on the Transparency Mechanism for Mechanism Regional Trade Agreements 2006, WT/l/671 Turkey – Textiles Turkey – Quantitative Restrictions on Textile and Clothing Products, WT/DS34 The US The United States of America US - Steel US – Certain Safeguard Measures Against the Import of Certain Steel Products, WT/DS252 WTO World Trade Organization TABLES OF CONTENT LIST OF ABBREVIATIONS INTRODUCTION Chapter THE LEGAL BACKGROUND FOR REGIONALISM IN TERMS AND IN DISPUTE SETTLEMENT PRACTICE – CONFORMITY OF VIETNAM’S REGIONAL COMMITMENTS 1.1 Substantive Requirements 1.1.1 Article XXIV of the GATT 1994 1.1.1.1 Scope of the Exception 1.1.1.2 Requirements of the Exception 13 1.1.2 The Enabling Clause 28 1.1.3 Article V of the GATS 30 1.2 Procedural Requirements 31 1.2.1 General Provisions 31 1.2.2 The Transparency Mechanism 34 CHAPTER THE INTERFACE BETWEEN REGIONALISM AND MULTILATERALISM IN INTERNATIONAL TRADE 39 2.1 Different Approaches on the Interrelation between RTAs and WTO law 39 2.1.1 Interrelation between Different International Treaties 40 2.1.2 Interrelation between Different Sources of International Trade Law 45 2.2 The Fragmentation of International Trade Law 48 2.3 Recommendations for Vietnam in the Context of Regionalism in the Multilateral Trading System 54 2.3.1 Economic Aspect 55 2.3.2 Political Aspect 59 CONCLUSION 62 BIBLIOGRAPHY INTRODUCTION Background The World Trade Organization (―WTO‖) is the only international organization that deals with the rules of trade between nations At its heart are agreements which established the multilateral trading system Although WTO Agreements are complicated, there are simple and fundamental principles that run throughout all of these documents Non-discrimination is a principle which characterizes the multilateral trading system One of the two contents is that a country should not discriminate between its trading partners With the view to enhance deeper economic integration among its members, justifiable deviations from the MFN obligation are granted to regional trade agreements (―RTAs‖) upon the fulfillments of certain requirements In the WTO, RTAs are defined as trade agreements between two or more partners They include free trade agreements and customs unions Hence, RTAs create discriminatory treatment to a number of WTO members which are parties thereto by allocating them with more favorable trade preferences The nature of RTAs is therefore somewhat contrary to the non-discrimination of WTO However, considering the benefits that RTAs may bring to international trade relations provided that they are well mandated in a manner that reduces the negative effects of such conflicts, justification for RTAs concluded by WTO members was established Up to date, the legal framework for regional integration under WTO law basically composes of (i) GATT 1994 Article XXIV, (ii) GATS Article V, (iii) the Enabling Clause and, (iv) the Transparency Mechanism The framework, which is primarily made up of requirements to be satisfied by RTAs parties, has given rise to many debates on its lack of clarity and failure to discipline the exception In such a context, RTAs have continuously grown in number Although WTO members’ practice to form RTAs is not a new resurgence, the trend has just become so intensive recently As of 30 April 2014, 249 RTAs have been notified to the WTO, among which 176 entered or will enter into force no sooner than January 2004 Almost all WTO members are parties to at least one RTA The proliferation of RTAs is currently characterized by the far broader coverage that goes beyond those negotiated at the multilateral level, the overlapping membership and the tension over crossregional partners in terms of geography Vietnam has participated in RTAs as individual with Japan, in ASEAN Free Trade Area and in the Global System of Trade Preferences among Developing Countries (GSTP) Under ASEAN membership, Vietnam is party to more RTAs with China, India, Japan, Korea and Australia – New Zealand The coverage, type and mandatory under which RTAs are notified vary accordingly An additional number of RTAs are being negotiated with the TransPacific Partnership at the spotlight and one more is under research The present paper provides a systematical understanding on the legal framework for RTAs under WTO law with detailed and synthesized discussions on its elements The author also hopes to analyze the legal aspects of regionalism in the multilateral trading system and subsequently, to propose useful ideas as relevant recommendations for Vietnam Literature Review Much literature has been devoted to discuss the legal defects of GATT 1994 Article XXIV and their implications on practice of WTO members, of which the followings are the most typical: (i) Lockhart, Nicolas JS and Andrew D Mitchell, Regional Trade Agreements Under GATT 1994: An Exception and Its Limits in Andrew D Mitchell (ed.), Challenges and Prospects for the WTO, London, Cameron May 2005; (ii) Gupta, Sayatan, ―Changing Faces of International Trade: Multilateralism to Regionalism‖, Journal of International Commercial Law and Technology, Vol 3:4, 2008 Accordingly, proposals have been suggested with a view to tighten the disciplines for RTAs concluded by WTO members An example is: (iii) Picker, Colin B., ―Regional Trade Agreement v the WTO: A Proposal for Reform of Article XXIV to Counter This Institutional Threat‖, U Pa J Int’l Econ L., Vol 2:2, 2006 Scholars have also evaluated RTAs as building blocks, stumbling blocks or stepping stones towards multilateralism One demonstrative working result is: (iv) Leaf-Arcas, Rafael, ―Proliferation of Regional Trade Agreements: Complementing or Supplementing Multilarealism?‖, Chicago Journal of International Law, Vol.11:2, 2011 Nevertheless, not many studies have focused on other legal aspects of the issue Especially in Vietnam, discussions on regionalism often appear as part of a more general work rather than as a separate research Purpose of the Research The research has two purposes The first purpose is to fully analyze the legal framework for regionalism under WTO law with the main focus on GATT Article XXIV It aims at providing detailed discussion on the substantive and procedural requirements for RTAs concluded by WTO members with a demonstration of Vietnam’s commitments under a specific RTA, namely the one with Japan The second purpose is to draw legal implications of the interface between regionalism and the multilateral trading system In doing so, the paper tries to explain the nature of conflicts between the two as well as describe the legal fragmentation incurred from the current wave of RTAs Based on such findings, the author hopes to propose useful ideas for Vietnam’s practice in negotiating and concluding RTAs Research Delimitation Regional trade agreements (RTAs) in the research shall be understood as agreements concluded between countries not necessarily belonging to the same geographical region which grant to their party preferential trade treatment of a discriminatory nature Regionalism shall have the meaning of intensified actions by WTO members to liberalize or facilitate trade through RTAs The WTO legal mandate for RTAs composes of several provisions Due to limitation on capacity, time and material, the research will focus mainly on GATT Article 1994 Article XXIV as a justification for RTAs concerning the trade in goods For the same reason, the Japan-Vietnam RTA is chosen to be a demonstration for conformity assessment of Vietnam’s regional commitments as it is the only agreement notified under Article XXIV in which Vietnam participates as individual rather than under ASEAN membership Research Methodology In order to fulfill the purpose set out for the research, the writer uses a combination of two methods for legal research The first one is legalistic research method This method is used to achieve an analytical understanding of the provisions of international treaties and other legal documents encompassed in the research process The contents of legal provision are interpreted and evaluated in a skeptical manner in order to provide a background on which further remarks and conclusions are based on The second is empirical method This method is used to obtain knowledge and data working on materials such as books, journals or research papers and on practical figures Information is collected, analyzed and synthesized to serve the research’s targets Structure of the Research The research is organized into three main parts The beginning provides a brief introduction on the research The first chapter will discuss WTO legal framework for regionalism in the multilateral trading system It will so by breaking down the relevant provisions into elements which are arranged into smaller parts of the chapter to fully discuss the substantive and procedural requirements that WTO law imposes on RTAs concluded by its members Subsequently, the second chapter will address the legal implications of regionalism, namely the interface between RTAs and the WTO as source of international trade law and the current fragmented trade regulation Such implications will finally followed by relevant recommendations for Vietnam Chapter THE LEGAL BACKGROUND FOR REGIONALISM IN TERMS AND IN DISPUTE SETTLEMENT PRACTICE – CONFORMITY OF VIETNAM’S REGIONAL COMMITMENTS The mandate for regionalism under WTO law will be analyzed as substantive and procedural requirements respectively As for substantive requirements, (i) GATT 1994 Article XXIV (―Article XXIV‖) together with the Understanding on the Interpretation of Article XXIV of the GATT 1994 (―the Understanding‖), (ii) GATS Article V, (iii) the Enabling Clause will be discussed with the main focus on Article XXIV Concerning procedures, the Transparency Mechanism will be presented As for the conformity of Vietnam’s regional commitments, the Japan-Vietnam RTA1 is considered as mentioned earlier in Introduction 1.1 Substantive Requirements 1.1.1 Article XXIV of the GATT 1994 The article provides an exception for RTAs concerning trade in goods Two main contents will be discussed respectively, which are scope of the exception and requirements to be fulfilled 1.1.1.1 Scope of the Exception The scope of exception will be broken down into RTAs, measures and WTO agreements covered for detailed analysis a RTAs covered The Agreement between Japan and the Socialist Republic of Vietnam for an Economic Partnership (JapanVietnam RTA) was signed on 25 December 2008 and entered into force since October 2009 The agreement covers both trade in goods and services The institution thereby established was notified to the WTO on October 2009 as free trade area under GATT 1994 Article XXIV regarding the sectors on goods 55 mandate should not be considered the cause for the current wave of regionalism in the multilateral trading system However, it should be sufficient to conclude that the present mandate adds certain of complexity and unpredictability to the multilateral system and fails to balance the positive and negative effects in a way that complements WTO’s principles and standards Much literature has been devoted to the evaluation of RTAs’ interaction with the multilateral trading system with the WTO at central, i.e whether they act as building or stumbling blocks Attention has been drawn to proposal to strengthen WTO’s disciplines addressing RTAs Nevertheless, it seems like there would still be a long way ahead as multilateral negotiations are progressing extremely slow, which is also due to the influence of strong-growing regionalism Undoubtedly, regionalism has its old pros and cons Therefore, a nation will certainly have some to lose if being left behind or staying an outsider to the big game Based on such overall context, the author hopefully aims at proposing several legal recommendations for Vietnam with the view that the state should make full use of RTAs as well as minimize the negative effects of regionalism 2.3.1 Economic Aspect An obviously important goal from time to time of RTAs is trade liberalization among the constituent parties The ultimate target is to create de facto free trade rather than simply de jure liberalization Thus, runners for RTAs should bear in mind the resolution to achieve this crucial desirable outcome AFTA is proved to be a useful lesson The regional trade arrangement was notified to the WTO under the Enabling Clause AFTA has frequently been criticized for the low utilization rate of preferences, which is a combined result of low 56 preferential margins and complicated requirements and administrative procedures such as rules of origin Less than percent of intra-ASEAN trade benefited from AFTA discriminatory preferences.105 Regarding preferential margin, most exporters will find the preferential tariff rates unattractive and tend to neglect them due to the low differential between applied MFN tariffs and those applied under RTAs for goods prominently traded in the relevant region Therefore, one remark for negotiators is that they should try to enlarge the distance between MFN rates under WTO commitments and the preferential rates from regional arrangements as much as possible In the case of Article XXIV, a wide coverage for tariff elimination will either comply with WTO’s requirements as well as ensure liberalization in reality Where capacity for tariff liberalization has reached its bottom limit, Vietnam should study and extend the intentions to other trade restrictions (for example, regional or bilateral safeguard measures) so that detailed scheme and provisions are compromised The complex of rules of origin will also restrain exporters from the enjoyment of preferential regional tariff rates Experience from Europe and NAFTA shows that even modest cost and/or delays from complying with rules of origin will induce exporters to pay the MFN rate, especially when MFN rate is low The low utilization rate in the AFTA’s case is explained by the fact that AFTA’s margins of preference on the high trade-volume goods are too insignificant to compensate for the administrative cost and delay of applying for preferential tariff treatment.106 Therefore, complicated compliance with the rules together with small margins of preferences will probably turn the regional integration efforts into obsolete As for Vietnam, it is recognized that domestic enterprises still act in a laid-back manner towards the exploitation of regional preferences In the case where RTAs are signed at varied levels like the current 105 Badwin, Richard E., ―Managing the Noodle Bowl: the Fragility of East Asia Regionalism‖, The Singapore Economic Review, Vol 53:3, World Scientific Publishing Company, 2008, p.449-478 106 Ibid 57 situation of Vietnam and Japan, the issue will get even more complicated In order to make the agreements more effective, on one hand, Vietnam should try to tackle incoherence and excessive costs associated with overlapping agreements More specifically, negotiators should find way to streamline rules of origin across agreements with the view to make these more applicable by companies and also to prevent fragmentation in international trade regulation.107 On the other hand, determined attempts shall be seriously designed to improve the quality of domestic guiding instruments for RTA implementation so that regional arrangements appear more familiar and accessible It should be noted that the effects of RTAs on the institutional framework in Vietnam has so far been limited Beside the issuance of a few circulars to implement tariff concessions and rules of origin, commitments have been implemented within the legal existing legal and administrative framework.108 Therefore, we have not made full use of RTAs to enhance national legal environment, which may also prevent us from the ultimate goal of ensure welfare from trade liberalization In addition, one of the ways to ensure that RTAs are more binding and have a larger scope for success in terms of freedom for trade would be to notify any new arrangement under GATT Article XXIV (and GATS Article V), rather than the Enabling Clause Although the Enabling Clause was designed by WTO legal framers to favor developing members concerning RTAs amongst less-developed countries, the rule requires no major commitment for liberalization In other words, with respect to internal trade, the demanded level of restrictiveness cut-off is relatively low The comparison made in the earlier chapter of the paper shows that due to the looser requirement of reduction and elimination of trade restriction and the possibility to 107 Supra note 101, page 62 WTO, Trade Policy Review Body, Trade Policy Review: Report by the Secretariat – Vietnam, WT/TPR/S/287, 2013 108 58 facilitate trade on a subset of products, the deep-integrated effect of RTAs under the Enabling Clause would noticeably decline The impact on WTO members which are parties to such RTAs could be in many cases described as to lose nothing but also gain nothing However, under critical examination, bargaining costs, time and human resources spent on negotiations and implementation are certain things to lose not to mention that such regional tension would surely undermine state’s capacity at multilateral level Therefore, although notifying under GATT Article XXIV (and GATS Article V) means stricter obligations of compliance, a positive result on the long run is that deeper liberalization and integration will be introduced, at least on a de jure basis There are other points that deserve careful consideration For example, some suggests that for countries where officials are not yet familiarized with RTAs should start with easier FTAs (i.e bilateral agreements, agreements cover solely good sectors or cover trade liberalization only, etc.) so that officials could gain more experience.109 However, this proposal should be realized with the caution regarding speed and multiplication of agreements which are to be concluded Moreover, state’s comparative advantage should also be duly consulted when deciding on partner choice in a way to favor national resources In addition, where complexity arises due to the increasing number of RTAs and their overlapping membership, the state can also consider the possibility to let the later agreements, which involves all parties to the former agreements to supersede the former so as to reduce the negative effect incurred by RTA ―spaghetti bowl‖ This is also a way to merge existing overlapping RTAs into one region wide RTA 109 Hoadley, S and J Yang, ―China’s Free Trade Negotiations: Economics, Security, and Diplomacy‖ in Katada, Saori N and Mireya Solis (ed), Cross Regional Trade Agreements – Understanding Permeated Regionalism in East Asia, 1st edtion, Springer-Verlag Berlin Heidelberg, 2008, page 129 59 2.3.2 Political Aspect Regional trade arrangements are traditionally instruments to boost economic integration so as to enhance development and social welfare However, the interdependence they create extends also to political aspect, especially with respect to peace and political stability Consequently, apart from economic causes, there are certainly political underpinnings for the participation of countries to RTAs such as political support, geo-politics and so on Some scholars have even emphasized the political nature of regionalism For example, a distinction is drawn between ―regionalization‖, which refers to the regional concentration of economic flows and also which is partially governed by WTO law to prevent an adverse impact on multilateral trading, and ―regionalism‖, which is defined as a political process characterized by economic policy cooperation and coordination among countries.110 Logically, deep integration leads to strong interdependence and therefore can somehow ensure national security Political intentions should accordingly be paid with adequate consideration in the initiation of RTAs (i.e strategic choice of RTAs partners) particularly in the context where geographical regional security has recently become extremely unstable with dramatic developments Chinese scholars for instance, in examination their country’s RTA strategy, suggested that China should make RTAs an important tool for both economic and political diplomacy.111 Empirical experience has also been manifested regarding this concern Peace and security have been at the 110 Manfields, Edward D and Helen V Milner, ―The New Wave of Regionalism‖, International Organization, Vol 53:3, 1999, p.591 See also Fishlow, Albert and Stephan Haggard, The United States and the Regionalization of the World Economy, Paris: OECD Development Center Research Project on Globalization and Regionalization, 1992 111 Hoadley and Yang, supra note 109, page 129 60 core of the integration initiatives of the European Union and African initiatives and have been undoubtedly a contributory factor for the ensuing stability in Europe.112 112 Supra note 101, page 61 61 CONCLUSION OF CHAPTER Different approaches on the legal interface between regionalism and multilateralism imply that a hierarchy among the two cannot be easily determined In such context, the proliferation of RTAs in the multilateral trading system creates the fragmentation of international trade law A fragmented legal basis will prevent the free flow of trade and deeper economic integration of WTO members as well as a country individually Therefore, Vietnam should fully consider different details and aspects in order to make full use of RTAs and minimize their negative effects 62 CONCLUSION GATT Article XXIV, the Enabling Clause and GATS Article V provide the legal framework for RTAs concluded by WTO members, which constitutes an exception to the MFN principle of WTO law In terms of substantive criteria, the provisions require trade liberalization between RTAs parties as well as limit the level of trade restrictiveness towards external trade As for procedural requirements, RTAs are subject to notifying obligation upon establishment and subsequent modification for transparency purpose rather than compliance evaluation The lack of clarity in almost all elements of the legal text and the failure of WTO judicial organs to further explanation result in various unofficial ways of interpretation, together with difficulties in consistency assessment The WTO untighten disciplines on RTAs would not necessarily lead to the current wave of regionalism within the multilateral trading system but obviously add up to its unpredictability and potential negative effects on international trade Internal trade might not be de facto liberalized and third-party members might suffer from undue additional barriers The interface between regionalism and the multilateral trading system can be legally approached as different treaties falling in the same category of conventional international law It could also be discussed as interrelation between different sources of international law with regional exception as a proposed custom In both cases, the present international rules seem insufficient to provide an adequate solution to the conflicts since no hierarchy of priority can be eventually determined Consequently, the mushrooming RTAs create the fragmentation of international trade regulations as the coherence and unity of the multilateral system’s overall picture are diminished Overlapping membership also contributes to the complexity of rules and standards governing trade with foreign of a nation 63 Despite the unresolved conflicts raised between regionalism and the multilateral trading system, Vietnam cannot stand outside as an isolated observer of the continuous trend We should make full use of RTAs to enhance deeper regional integration and minimize their downside effects on the free flow of trade in the backdrop of WTO’s legal framework Serious effort should be made to enlarge the distance between MFN and regional preferential rates and to target non-tariff restrictions where tariff liberalization has reached its bottom limits Moreover, negotiators should try to tackle incoherence and excessive costs associated with overlapping RTAs, especially with respect to un-streamlined rules of origin On the other hand, determined attempts should be realized to improve the quality of domestic guiding instruments for RTA implementation so that they become more familiar and accessible In addition, new trade arrangements should be notified under GATT Article XXIV rather than the Enabling Clause in order to prevent general commitments of low integration Another recommendation for Vietnam in the present context is that political factors should be paid with adequate consideration of RTAs to partially ensure peace and national security BIBLIOGRAPHY A Legal Documents in Chronological Order Vienna Convention on the Law of Treaties 1969 Decision of 28 November 1979 on Differential and More Favorable Treatment Reciprocity and Fuller Participation of Developing Countries General Agreement on Tariffs and Trade 1994 General Agreement on Trade in Services 1994 Understanding on Rules and Procedures Governing the Settlement of Disputes 1994 (Annex of the WTO Agreement) Understanding on the Interpretation of Article XXIV of the General Agreement on Tariffs and Trade 1994 General Council Decision on the Transparency Mechanism for Regional Trade Agreements 2006, WT/l/671 Agreement on Comprehensive Economic Partnership among Japan and the Member States of the Association of the Southeast Nations dated 03 April 2008 Agreement between Japan and the Socialist Republic of Vietnam for an Economic Partnership dated 25 December 2008 B 10 Books in Alphabetical Order of the Authors’ Names Bhala, Raj, International Trade Law: Interdisciplinary Theory and Practice, 3rd edition, LexisNexis, 2007 11 Buckley, Ross P and Richard Weixing Hu and Douglas W Arner, East Asia Economic Integration: Law, Trade and Finance, Asian Commercial, Financial and Economic Law and Policy Series, Edward Elgar Pub, 2011 12 Buckley, Ross P (ed), The WTO and the Doha Ground - The Changing Face of World Trade, Global Trade and Finance Series, 1st edition, Kluwer Law International, 2003 13 Ho Chi Minh City University of Law, WTO Case Law – A Compilation of Significant WTO Cases and Rulings, The Labor – Society Publishing House, 2010 14 Mitchell, Adrew D, Challenges and Prospects for the WTO, London: Cameron May, 2004 15 Katada, Saori N and Mireya Solís (ed), Cross Regional Trade Agreements – Understanding Permeated Regionalism in East Asia, 1st edtion, Springer-Verlag Berlin Heidelberg, 2008 16 Klabbers, Jan, Treaty Conflict and the European Union, Cambridge University Press, 2009 C 17 Journals in Alphabetical Order of the Authors’ Names Badwin, Richard E., ―Managing the Noodle Bowl: the Fragility of East Asia Regionalism‖, The Singapore Economic Review, Vol 53:3, World Scientific Publishing Company, 2008, p.449-478 18 Bartels, Lorand, ―Interim agreements under Article XXIV GATT‖, World Trade Review, Vol 8:2, 2009, p.339-350 19 Crawford, Jo-Ann and C.L Lim, ―Cast light and the evil will go away: The Transparency Mechanism for Regional Trade Agreements after three years‖, Journal of World Trade, Vol 43:2, 2011, p.375-400 20 Cho, Sungjoon, ―Breaking the Barrier Between Regionalism and Multilateralism: A New Perspective on Trade Regionalsim‖, Harvard International Law Journal, Vol 42:2, 2001 21 Devuyst, Youri and Asja Serdarevic, ―The World Trade Organization and Regional Trade Agreements: Bridging the Constitutional Credibility Gap‖, Duke Journal of Comparitive and International Law, Vol 18:1, 2007 22 Gupta, Sayatan, ―Changing Faces of International Trade: Multilateralism to Regionalism‖, Journal of International Commercial Law and Technology, Vol 3:4, 2008, page 260-273 23 Ghouri, Ahmad Ali, ―Determining Hierarchy Between Conflicting Treaties: Are There Vertical Rules in the Horizontal System?‖, Asian Journal of International Law, 2012, page 1-32 24 Leaf-Arcas, Rafael, ―Proliferation of Regional Trade Agreements: Complementing or Supplementing Multilarealism?‖, Chicago Journal of International Law, Vol.11:2, 2011, page 597-628 25 Manfields, Edward D and Helen V Milner, ―The New Wave of Regionalism‖, International Organization, Vol 53:3, 1999, p.589-627 26 Panagaria, Arvind, ―The regionalism debate: An Overview‖, The World Economy, vol 22:4, 1999, page 477-512 27 Picker, Colin B., ―Regional Trade Agreement v the WTO: A Proposal for Reform of Article XXIV to Counter This Institutional Threat‖, U Pa J Int’l Econ L., Vol 2:2, 2006 28 Pauwelyn, Joost, ―The Puzzle of WTO Safeguards and Regional Agreements‖, Journal of International Economic Law, Vol 7:1, 2004, p.109-142 D 29 Research Papers in Alphabetical Order of the Authors’ Names Abreu, Maria Donner, Preferential Rules of Origin in Regional Trade Agreements, Staff Working Paper, WTO Economic Research and Statistics Division, 22 March 2013 30 Delimatsis, Panagiotis, The Fragmentation of International Trade Law, TILEC Discussion Paper, Tilburg University, February 2010 31 Fabbricotti, Alberta, The Interplay between the WTO and the RTAs: Is It A Question of Interrelation Between Different Sources of International Law?, Inaugural Conference, Society of International Economic Law, 2008 32 Fishlow, Albert and Stephan Haggard, The United States and the Regionalization of the World Economy, Paris: OECD Development Center Research Project on Globalization and Regionalization, 1992 33 Fiorentino, Roberto V and Luis Verdeja and Christelle Tuqueboeuf, The Changing Landscape of the Regional trade Agreements: 2006 Update, WTO Discussion Paper No.12, 2007 34 Mercurio, Bryan, Bilateral and Regional Agreements in Asia: A Sceptic’s View, in Buckley, Ross P and Richard Weixing Hu and Douglas W Arner, East Asia Economic Integration: Law, Trade and Finance, Asian Commercial, Financial and Economic Law and Policy Series, Edward Elgar Pub, 2011, p.121-150 35 Multilateral Trade Assistance Project Vietnam II, Ministry of Industry and Trade in partnership with European Commission, Report on “Vietnam’s regional commitments and their interaction with WTO commitments”, final draft, 2008 E 36 Others Harvard University Centre for International Development, Summary of Regionalism, 2004 37 Multilateral Trade Assistance Project Vietnam III, Ministry of Industry and Trade in partnership with European Commission, Hiệp định Thương mại tự – Một số khái niệm bản, 2012 38 United Nations, Fragmentation of International Law: Difficulties Arising From the Diversification and Expansion of International Law, Report of the Study Group of the International Law Commission, International Law Commission, 58th Session, A/CN.4/L.702, 18 July 2006 39 Walter Goode, Dictionary of Trade Policy Terms, Cambridge University Press, 4th edition, 2003 40 WTO Analytical Index of the GATT; 41 WTO, Committee on Regional Trade Agreements, Economic Partnership Agreement between Japan and Vietnam: Questions and Replies, WT/REG.275/2, 10 June 2011 42 WTO, Committee on Regional Trade Agreements, Factual Presentation on Economic Partnership Agreement between Japan and Vietnam: Report by the Secretariat (Revision), WT/REG.275/1/Rev.1, July 2011 43 WTO Committee on Regional Trade Agreements, Synopsis of Systemic Issues Related to Regional Trade Agreements: Note by the Secritariat, WT/REG/W/37 (2 March 2000 44 WTO, Report of the Appellate Body, Turkey – Textiles, WT/DS34/AB/R 45 WTO, Report of the Panel, Turkey – Textiles, WT/DS34/R 46 WTO, Report of the Appellate Body, US – Pipe lines, WT/DS249/AB/R 47 WTO, Report of the Panel, US – Pipe lines, WT/DS249/R 48 WTO Negotiating Group on Rules, Compendium of Issues Related to Regional Trade Agreements – Background Note by the Secrectariat (Revision), TN/RL/W/8/Rev.1, August 2002 49 WTO, Trade Policy Review Body, Trade Policy Review: Report by the Secretariat – Vietnam, WT/TPR/S/287, 2013 F Websites 50 www.asean.org 51 http://www.asean.fta.govt.nz/ 52 www.trungtamwto.vn 53 www.wto.org 54 http://rtais.wto.org/UI/PublicMaintainRTAHome.aspx ... together with the Understanding on the Interpretation of Article XXIV of the GATT 1994 (? ?the Understanding‖), (ii) GATS Article V, (iii) the Enabling Clause will be discussed with the main focus... 1.1.1 Article XXIV of the GATT 1994 1.1.1.1 Scope of the Exception 1.1.1.2 Requirements of the Exception 13 1.1.2 The Enabling Clause 28 1.1.3 Article V of the. .. of liberalization within the RTA, in accordance with the purpose of the exception in Article XXIV: 5‖ and this argument was made up regarding both duties and ORRC 16 VI of GATT 1994, should also