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World Trade Organization: United States - Import Prohibition of Certain Shrimp and Shrimp Products

In a decision issued on October 12, 1998, the Appellate Body of the World Trade Organization (WTO) upheld the judgment of a WTO dispute settlement panel that the United States' ban on imports of shrimp harvested without turtle-excluder devices (TEDs) (which protect sea turtles during shrimp harvesting) violates WTO rules. The Appellate Body agreed with the panel that, contrary to the arguments of the United States, the import ban was not justified as a natural resource conservation measure under Article XX(g) of the General Agreement on Tariffs and Trade of 1994 (GATT 1994) (part of the WTO Agreement), which provides an exception from general WTO rules for trade-restrictive measures "relating to the conservation of exhaustible natural resources." Although the Appellate Body found that the U.S. law prescribing the import ban was within the scope of measures covered by Article XX(g), because the ban was applied by the United States in an arbitrary and discriminatory manner, it nevertheless was not permissible.