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

2. Topic: WTO consistency with Southland's COVID-19 trade measures
Introduction
The COVID-19 pandemic has prompted Southland to implement a number of trade measures, two of which which had a negative impact on Welland's exports.
Welland has expressed its intention to challenge these measures within the WTO dispute settlement framework.
This report analyzes whether Southland can justify these measures under the general exceptions or relevant security exceptions of GATT 1994.
The report also addresses Southland's argument that the issue falls outside the scope of WTO dispute settlement due to national security justifications.
Analysis .
Certain exceptions allow WTO members to break their commitments in certain circumstances.
Article XX is the most relevant exception, allowing WTO members to take measures necessary to protect human, animal or plant health and life.
Southland could argue that alcohol import quotas are necessary to protect human health by limiting excessive alcohol consumption, which would also reduce breaches of social distancing rules.
However, Welland would probably argue that quotas are unnecessary for this purpose.
Southland could have implemented less trade-restrictive measures, such as public education campaigns or targeted enforcement action against businesses violating social distancing rules.
Welland could also argue that the quota is discriminatory because it allocates one-third of the quota to each of the three WTO members with which Southland has close political ties, but does not allocate quota for Welland, the main source of beer and whiskey imports in the Southland.
This suggests that quotas must be applied in good faith to protect human health.
Exceptions GATT 1994 provides general exceptions allowing Article XXI of GATT 1994 to authorize WTO members to take any action they consider necessary to protect their security interests.
This exception is very broad but it is important to note that it only applies in cases where there is a natural and imminent threat to national security.
Southland could argue that the COVID-19 pandemic poses a real and imminent threat to the country's national security, given the economic crisis and public unrest it has caused.
However, Welland would likely argue that the pandemic does not pose a threat to national security in the traditional sense, which typically refers to threats posed by foreign states.
Welland could argue that alcohol import quotas are not necessary to protect national security.
As mentioned earlier, Southland could have implemented other, less trade-restrictive measures to address the issues of excessive alcohol consumption and breaches of social distancing.