Topics: wto dispute Settlement – Welland's challenge to Southland's covid-19 measures


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Topics: WTO Dispute Settlement – Welland's challenge to Southland's COVID-19 measures Welland has announced its intention to challenge two of Southland's COVID-19 measures in a dispute with trade trade of the World Trade Organization.
One such measure is the Retail Contact Reduction Act, which sets a maximum limit on the number of transactions for non-essential goods made at Southland stores.
This measure has had a significant impact on Welland's beer and whiskey exports, as these alcoholic beverages are classified as non-essential products.
Welland argued that the Retail Contact Reduction Act needed to be more consistent with GATT 1994 and that Southland could not successfully justify it under any relevant exceptions.
For its part, Southland argued that the measure was necessary to protect public health and safety and was justified under the Article XX(b) security exception.
Southland imposed two COVID-19 related measures that had a devastating impact on Welland's exports.
One is a maximum limit on retail sales of non-essential products in stores, and the second is an exemption for the sale of pisco, a domestically produced alcoholic beverage.
Welland argued that these measures should be more consistent with GATT 1994, while Southland argued that they were necessary to protect public health and safety and were justified under the security exception to Article XX(b).
We considered the Retail Exposure Reduction Act and its impact on trade, particularly on Welland's exports, in response to Welland's intention to challenge the measures implemented by Southland presently.
Key measures include placing maximum limits on retail transactions of non-essential goods in an effort to minimize the spread of Covid-19.
Our task is to assess whether Southland can successfully justify these measures under the general exceptions or relevant security exceptions of GATT 1994.

Restrictions on retail transactions for non-essential goods: In an effort to reduce the spread of COVID-19, Southland has imposed restrictions on retail transactions for non-essential goods.
This is aimed at limiting the number of consumers in stores, which have been identified as transmission hotspots.
The impact of these restrictions extends beyond services, affecting exports of non-essential goods such as Welland beer and whiskey.
Exemptions for Pizco: The law includes a provision that exempts the sale of pizco, a domestically produced alcoholic beverage considered "essential" under the law.
Welland questioned the validity of this exemption, saying it unfairly disadvantaged imported products and raised questions about the health justifications offered by Southland.

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