When the Dillon Round took place in the laborious process of individual negotiations on customs duties, it became clear well before the end of the Round that a more comprehensive approach was needed to address the challenges arose from the creation of the European Economic Community (EEC) and EFTA, as well as the rebirth of Europe as an important international trader in general. The derogations referred to in Article XX of the GATT shall be permitted as long as the measures resulting therefrom are not unjustified or arbitrary. This implies that the country has no other means to achieve these objectives that would avoid restrictive business practices. In this context, the general principles of international law and other international conventions ratified by members may also be taken into account when interpreting the extension of a derogation (US – Shrimp, WTAB/R, 1998, paragraph 35). See also Vienna Convention on the Law of Treaties Article 31(3.c). Article XX of the GATT (also known as the chapeau clause) contains a list of ten permitted derogations from the principles of free trade set out in the agreement. China`s special protection measures are as follows. When China became a member of the WTO in 2001, it accepted many requests from other WTO members. One such provision, requested by the United States, was the granting of “special protection”. The agreement allowed the United States and all other WTO countries to introduce additional guarantees for certain Chinese products that could suddenly flood their markets. Today, trade laws are the most important legal method for WTO countries to increase their level of protection of domestic industry. By binding countries to a maximum level of protection, the GATT and WTO agreements remove their national sovereignty over increasing barriers to trade. Note that countries are still free to unilaterally remove barriers to trade if they wish without violating the agreements.
Trade protection legislation offers a kind of safety valve, because in certain prescribed circumstances, countries can essentially break their promises. In the 1990s, the confusion created by this term led the United States to adopt an alternative term, Normal Trade Relations (NTR) for use in national legislation. . . .