The legality of the trade policy measures of the Regulation (EU) 2021/167 in the light of WTO Law DOI: 10.17103/reei.44.03

Abstract

This paper analyzes Regulation (EU) 2021/167, which allows the EU to apply unilateral trade policy measures to WTO members that decide to appeal a panel report that is favorable to the EU before the Appellate Body (AB). Its objective is to determine their legality in the light of WTO law. Specifically, we ask how a WTO panel would react to the EU's argument that a WTO member's filing of a null and void appeal with an AB, whose current existence is merely nominal, is an act of bad faith. To this end, firstly, the context that led to the adoption of this Regulation is analyzed. Secondly, the extent to which general international law can be invoked as a determining reason for the application of these unilateral sanctioning measures is examined. Thirdly, it examines the argument of bad faith put forward by the EU as the ultimate justification for the application of such measures.