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

WTO Dispute Settlement
Southland argued that an alcoholic beverage import quota and whether it was justified under the national security exception was beyond the scope of dispute resolution at the WTO.
However, this argument is unlikely to succeed.
The WTO dispute settlement system is designed to ensure that all WTO members comply with their obligations under the WTO Agreements.
This implies not only a duty to respect confidentiality exceptions but also a duty to apply them in good faith.
The WTO panel will have the power to review Southland's alcoholic beverage import quota to determine whether it is implemented in good faith and is necessary to protect national security.
If the panel finds that the quota is not applied in good faith or that it is not necessary to protect national security, it could recommend that Southland withdraw the measure.
In conclusion, the import quota on alcoholic beverages imposed by Southland is not likely to be successfully justified under the GATT 1994 exceptions.
The quota is not essential to protect human health or national security and may also be discriminatory in its application.
Moreover, it is probable that the issue of whether the quota is justified under the national security exception comes under the purview of the WTO dispute settlement.