Asean Treaty Lecture Note

1. By
Dr. Jaruprapa Rakpong
The Faculty of Law, Thammasat University, Thailand
ASEAN Treaty Interpretation for the Free
Movement of Goods
๓
ถาม ทำไมสิงคโปรถึงแบนสินคาจากอินโดนีเซียที่มีการเผาได

2. Recap: The History about the Development of the ASEAN
Economic Community (AEC)
๔

3. The Original Founding Member States (2510/1967)
1) Thailand
2) Indonesia
3) Malaysia
4) The Philippines
5) Singapore
Recap: The History about the
Development of the AEC
๕
Bangkok Declaration
8 August 1967 (2510)
ปฏิญญาอาเซียน

4. 4

5. The Original Founding Member States (2510/1967)
1) Thailand
2) Indonesia
3) Malaysia
4) The Philippines
5) Singapore
More Recent Member States
6) Brunei (2527/1984)
7) Vietnam(2538/1995)
8) Laos (2540/1997)
9) Myanmar (2540/ 1997)
10. Cambodia (2542/ 1999)
Recap: The History about the
Development of the AEC
Bangkok Declaration
8 August 1967 (2510)
๕
ใชกรอบขององคการการคาโลกในการอางยันระหวางกัน

6. 6
ปฏิญญากรุงเทพเปนสนธิสัญญาหรือไม ตองดู format & content

7. The aims of ASEAN are to….
…that the aims and purposes of the Association shall be:
1. To accelerate the economic growth, social progress and cultural development in the region through joint
endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and
peaceful community of South-East Asian Nations;
2. To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship
among countries of the region and adherence to the principles of the United Nations Charter;
3. To promote active collaboration and mutual assistance on matters of common interest in the economic, social,
cultural, technical, scientific and administrative fields;
4. To provide assistance to each other in the form of training and research facilities in the educational, professional,
technical and administrative spheres;
5. To collaborate more effectively for the greater utilization of their agriculture and industries, the expansion of their
trade, including the study of the problems of international commodity trade, the improvement of their
transportation and communications facilities and the raising of the living standards of their peoples;
6. To promote South-East Asian studies;
7. To maintain close and beneficial cooperation with existing international and regional organizations with similar
aims and purposes, and explore all avenues for even closer cooperation among themselves.
๖

8. Now Enter, the ASEAN
(กฎบัตรอาเซียน) Charter 2007
 Has come into force since 15 December 2008
 Serves as a firm foundation in achieving the ASEAN
Community by providing legal status and institutional
framework for ASEAN
 A legally binding treaty among the 10 ASEAN
Member States
 Codifies ASEAN norms, rules and values;
sets clear targets for ASEAN; and presents
accountability and compliance
With four key objectives
 To create the rules-based Community and institutions
 To increase affectivity towards the ASEAN objectives
 Towards people-centered community
 To establish the ASEAN norms
๗
กอนป 2007 มี concern วา ASEAN เปนองคการระหวางประเทศหรือไม เพราะปกติองคการระหวางประเทศจะตองมีเอกสาร
เปนกฎบัตร ลักษณะเปนสนธิสัญญาอยางชัดเจน
ความผูกพันตางๆ คอนขางหลวม มีการสื่อสารทางการทูต ใชการประนีประนอม มากกวา
การใชกฎบัตรอาเซียนเปนสนธิสัญญา

9. Thus,
 To form the “constitution” of ASEAN
With 3 main objectives
- to create rules-based community
- to increase market efficiency
- to form people-centered community
“We are ASEAN citizens”
9
Not an easy
task!!
Why?
We are ASEAN citizens !
สรางสังคมระดับภูมิภาคที่ยึดมั่นในกฎหมาย มีกระบวนการในการระงับขอพิพาท
การสรางเขตเศรษฐกิจที่มีการคาเสรี มีการเคลื่อนยายสินคาอยางเสรี
มีการสรางสังคมที่มีประชาชนเปนศูนยกลาง

10. ASEAN Motto:
"One Vision, One Identity, One Community".
10

11. Opportunities of the AEC Integration
Population: over 600
millions. 8.8% of the
world population
Area: 4.46 square
km. 3% of the
earth surface
Working population
growth at 1.58%
Average GDP grew
4.55% (cf. 0.1% for
G6) Intra- Trade:
US$ 2 trillions
GDP 2.3 trillion.
FDI: US$ 40
trillions
Potentially 6th largest
economy in the world
after the US, China,
India, Japan and
Germany
๙
มีการลงทุนโดยตรงจากตางประเทศ
คอนขางมากเมื่อเทียบกับภูมิภาคอื่น
ตลาดยังมีโอกาสโตได
ประชากรยังมีอัตราเติบโตอยู

12. Unique of Opportunities for Thailand?
Geographically, at the centre
Free movement of goods, services, investment and
persons
Living environment
Domestic laws/regulations e.g. investment
ASEAN commitments …
12

13. Recap: Potential of AEC Integration
Highly Diverse
Backgrounds: minorities,
languages, culture, etc.
Destinations for
various services
Large
development gaps
Destinations for
commodities:
agricultural, fisheries,
and manufacturing
Tourist
Destinations
13

14. Unique of Challenges for Thailand?
Geographically, at the centre
Free movement of goods, services, investment and
persons
Living environment
 Domestic laws/regulations e.g. investment
 ASEAN commitments …
Language barriers
14

15. Recap: Potential of AEC Integration
Highly Diverse
Backgrounds: minorities,
languages, culture, etc.
Destinations for
various services
Large
development gaps
Destinations for
commodities:
agricultural, fisheries,
and manufacturing
Tourist
Destinations
๑๐

16. ASEAN Connectivity
- Physical : transportation, telecommunication, energy
- Institutional: institutions within ASEAN for
coordination/cooperation, harmonisation of laws-regulations –
standards-policies e.g. agricultural products, health products,
rubber, car manufacturing, service industry (hotels and
banking etc.), health policies, terrorism, cyber attack
- People : education, culture, tourism
16
Accelerated by the
digital economy and
internet

17. The 3 Pillars
๘
เสาหลัก 3 เสาของอาเซียน
สินคาบางประเภทที่สงมาจากตาง
ประเทศไดรับยกเวนภาษีจากนโยบาย
FDA
เสาเศรษฐกิจเปนเสา
ที่มีพัฒนาการสูงสุด
พิมพเขียวอาเซียน

18. Key Objectives of the AEC
- Established by the end of 2015
(AEC BluePrint)
“At the 12th ASEAN Summit in January 2007, the Leaders
affirmed their strong commitment to accelerate the
establishment of an ASEAN Community by 2015 …. In
particular, the Leaders agreed to hasten the establishment of
the ASEAN Economic Community by 2015 and to transform
ASEAN into a region with free movement of goods, services,
investment, skilled labour, and freer flow of capital”
๑๑

19. Key Objectives of the AEC
Characteristics and Elements of AEC
(a) A single market and production base;
(b) A dynamic and competitive economic region;
(c) Address development divide and accelerate integration
of CLMV towards equitable economic development;
and
(d) A region fully integrated into the global economy
All of these elements are inter-related and mutually-
reinforcing
๑๒

20. Key Objectives of the AEC: Single
Market and Production Base
Free movement of goods
- Very significant to achieve a single market and production base
- Through Common Effective Preferential Tariffs  for AFTA
Agreement, the tariff has been very much reduced
- But the most important tasks from now is to remove non-tariff
barriers, create trade facilitations measures e.g. integrate
custom procedures, single submission of data (ASEAN Single
Window), constitute agreements on rule of origins, standard
harmonisation.
Others? Transport?
๑๓
เมืองที่มีพัฒนาการสูงสุดคือการเคลื่อนยายสินคาอยางเสรีทำใหสินคา
จากประเทศภายในอาเซียนมีราคาถูกลงอยางเห็นไดชัด เพราะราคา
สินคาไมถูกบวกภาษีศุลกากร

21. For Free Movement of Goods
Already zero tax rates of more than
1000 items
Rules of Origin
MRAs for Standards
But is this enough? 
Learn from the EU Experience
Company Logo
21
Items ดูจาก HS code (พิกัดศุลกากร) แตละประเทศกำหนด สินคาที่ยังเก็บภาษีอยูได
หลักการคิดวา สินคานั้นผลิตจากแหลงใดมีหลักการอยูหลายหลัก แตหลักการทั่วไป
คือการเปลี่ยนพิกัดของสินคา เชน วัตถุดิบจากไทย บรรจุขวดที่มาเลเซีย มีการ
เปลี่ยนแปลงที่การมีนัยสำคัญที่มาเลเซีย ตองนับวาผลิตที่มาเลเซีย
Mutual recognition agreements ไม harmonize ดวยมาตรฐานเดียวกัน
แตมีขอตกลงเทียบเทามาตรฐานซึ่งกันและกัน ปจจุบันยังพบไมคอยมาก

22. Key Objectives of the AEC
Free movement of services, investment, skilled
labour
- No restriction of service suppliers and establishment of
companies across the region
- Non-discrimination principles for investors and skilled-labour
- Mutual recognition of professional qualification (but with some
problems)
7 groups of
professions
Others? Visa Requirements and Benefits?
๑๔

23. Free Movement of Skilled Labour
Professions in the fields of
1. engineering
2. Architecture
3. surveying
4. medicine
5. dentistry
6. Nursing
7. Accountancy
8. Tourism
Through MRAs (Mutual Recognition Agreements)
23
- Still at the
beginning!
- Safeguarding
policies and
exceptions
มีการเคลื่อนยายแรงงานมีฝมืออยางเสรี
ความตกลงทางเศรษฐกิจในอาเซียนเรื่องการคา เรียกวา ATIGA (Asean Trade in Goods Agreement)
Note: ภาษาทางการของอาเซียนคือ ภาษาอังกฤษ
ตองสอบใบประกอบโรคศิลปของประเทศนั้นๆ

24. Key Objectives of the AEC
Freer flow of capital
- Towards harmonisation of capital market standards in rules for
debt security, disclosure, etc.
- Mutual Recognition Agreements on qualifications and
certification of capital market professionals
- Remove and relax flow of capital restrictions
- Promote stability in capital markets and economy in the region
Others? More rules to promote stabilities
๑๖
มีขอกังวลเรื่อง อาจเปนการฟอกเงิน หรือกระทบอัตราแลกเปลี่ยน เลยไม
free 100%

25. The Works have already begun
towards this
 Over 80 documents to bring about AEC goals have
established  more to come
 Work in progress but there will be problems during the
transition period
 How can we survive the changing legal landscape during this
time?
 Needs strategic preparation and be ready for the change in
the legal landscape
๑๗

26. Fora of Negotiation for the AEC
 ASEAN Economic Ministers (AEM)
 ASEAN Free Trade Area (AFTA Council)
 ASEAN Ministers on Energy Meeting (AMEM)
 ASEAN Ministerial Meeting on Agriculture and Forestry (AMAF)
 ASEAN Finance Ministers Meeting (AFMM)
 ASEAN Investment Area (AIA) Council
 ASEAN Ministerial Meeting on Minerals (AMMin)
 ASEAN Ministerial Meeting on Science and Technology (AMMST)
 ASEAN Mekong Basin Development Cooperation (AMBDC)
 ASEAN Transport Ministers Meeting (ATM)
 ASEAN Telecommunications and IT Ministers Meeting (TELMIN)
 ASEAN Tourism Ministers Meeting (M-ATM)
 Initiative for ASEAN Integration (IAI) and Narrowing the Development Gap (NDG)
 Sectoral Bodies under the Purview of AEM
26

27. What have happened since the end of 2015?
- Growth in Inter and Intra AEC trade
- Consumer choices and lower price
- More products in the market due to the free movement
of goods , not only from AEC regions but also others
- More competition for Thai products
- More opportunity for Thai products
- More movement of people (skilled, non-skilled labour,
tourists, business persons) but still lack of labour
mobility!
- More risks. More works for policy makers and officers?
Others?
๑๘

28. This means that …
 Thai domestic laws (and those of the Member
States) must comply with ASEAN commitments
monism” versus “dualism” approach to
international law
More harmonization of member states’
laws/regulations
28
Legislation Time
lag

29. Treaty Interpretation
How? (Rule of Interpretation: See
Article 31-33 VCLT)
1) Look at the actual text Go for the “ordinary meaning” which is
relevant in its context, object & purposes, first (Art. 31(1))
2) Look for the object and purpose  A Treaty comprises the main
text, preamble, annex as well as other agreement made in
connection with the treaty, other related instruments where all the
parties to treaty are also CPs. (Art. 31(2))
3) Look for the intention of the parties  As a supplementary means,
“travaux preparatoires” can be used to find out about the parties’
intentions when making the treaty.
หลักการตีความสนธิสัญญาสัญญา อยูในอนุสัญญาเวียนนา ขอ 31-33
หลักการทั่วไปในการตีความสนธิสัญญา ใชกันจนเปนจารีตประเพณี (CIL)
เปดหาจากความหมายทั่วไป (ความหมายตามพจนานุกรม) ยกเวนความหมายทั่วไปใหผลที่ absurd ก็ใหดูตามบริบท ตามเจตนารมณของ
กฎหมาย มักจะแฝงอยูในอารัมภบท หรือขอบทที่เปน definition ถาไมอยูในเอกสารบางครั้งอาจจะตองไปดูถึง travaux preparatoires
เอกสารรายงานการประชุม
การตีความสนธิสัญญาของอาเซียน มีการเอาการพิจารณาคดีของ WTO มาใชดวย แตยังมีขอถกเถียงอยู

30. Treaty Interpretation
How? (Rule of Interpretation: See Article 31-33 VCLT)
- Only interpret the problematic terms
- If treaty is authenticated in many languages, each is
equally authoritative (unless provided, or the parties agree
otherwise)
- If there are conflicts regarding the meaning in different
languages, the meaning which is the least ambiguous/
least intrusive should be used
กฎ

31. VCLT Article 31 General rule of interpretation
1. A treaty shall be interpreted in good faith in
accordance with the ordinary meaning to be given
to the terms of the treaty in their context and in
the light of its object and purpose.
2. The context for the purpose of the interpretation of
a treaty shall comprise, in addition to the text,
including its preamble and annexes:
(a) any agreement relating to the treaty which was made
between all the parties in connexion with the conclusion
of the treaty;
(b) any instrument which was made by one or more
parties in connexionwith the conclusion of the treaty and
acceptedby the other parties as an instrument related to
the treaty.

32. Treaty Interpretation
By Whom?
i) Contracting parties
- Usually by having a defining provision (can be in the
subsequent agreement)
ii) Third parties
- Depending on the text of the treaty, parties
agreements, these can be the ICJ, international
tribunals, international organisations, or other
states.
In the ATIGA this can be done by
the parties and the panelists

33. Rules of Interpretation  following the principles of
International (Economic) Law
 CIL vs. GPL
 Dispute Settlement Mechanism - reciprocity
vs. compromise
 Most favoured nation
 National Treatment
 Exceptions - means end rationality
- Necessity Test
- Weighing and balancing
- Proportionality
 Transparency 33

34. Textual Obligations of the Member States in the AEC
Framework
34
- From the
Agreement
on the
Common
Effective
Preferential
Tariff (CEPT)
- Use GATT
1994 as the
reference
- Some similar
concepts
with those of
the WTO
- Still lots of
ambiguity
ASEAN Trade in
Goods Agreement
Or
ความตกลงการค้าสินค้าอาเซียน
Or
ATIGA
เพราะทุกชาติในสมาชิกอาเซียนเปนสมาชิก WTO จึงใชหลักการของ WTO
GAT = ความตกลงทั่วไปวาดวยภาษีศุลกากรและการคา

35. MFN under ATIGA
Article 5: Most Favoured Nation Treatment
With respect to import duties, after this Agreement
enters into force, if a Member State enters into any
agreement with a non-Member State where
commitments are more favourable than that
accorded under this Agreement, the other Member
States have the right to request for negotiations with
that Member State to request for the incorporation
herein of treatment no less favourable than that
provided under the aforesaid agreement. The
decision to extend such tariff preference will be on a
unilateral basis. The extension of such tariff
preference shall be accorded to all Member States.
35
ชาติที่ไดรับความอนุเคราะหยิ่ง
ภาษีนำเขา
หากประเทศในอาเซียนทำขอตกลงเจรจาลดหยอนภาษี หรือเจรจาใหผลประโยชนตางๆ กับประเทศนอกอาเซียน ประเทศในอาเซียนอื่นๆ
ยอมมีสิทธิรองขอใหมีการเจรจาเชนเดียวกัน โดยจะเจรจาใหนำอัตราภาษีที่ดีที่สุด หรือประโยชนที่ดีที่สุดที่ใหกับประเทศนอกอาเซียนมาให
กับประเทศในอาเซียนดวย
ตอมามีกรณีที่ประเทศในอาเซียนรวมตัวกันไปเจรจา เพื่อเพิ่มอำนาจตอรอง สินคาที่ตางประเทศตองการมาเจาะตลาดในอาเซียนคือ
แอลกอฮอล และ รถยนต
ไทยมีการเจรจากับญี่ปุนในการกำหนดราคาสินคาออนไหว เชน ยางพารา หลังจากไทยเจรจาแลว ก็มีการรวบดวยการทำขอตกลงอาเซียน-ญี่ปุน
ตอมาก็มีการทำขอตกลงอาเซียน-จีน
กำลังจะมีขอตกลงระหวางไทยกับ EU

36. Country A
Country B
C
D
E
F
MFN = Catalyst for Trade Liberisation
MFN= a cornerstone/ central pillar of trade policy.
MFN = Reciprocity
MFN = Non-Discriminatory
สินคาที่จะเขายุโรปตองทำรายงานวาไมละเมิดสิทธิมนุษยชน ไมละเมิด minority และกลุมชายขอบตางๆ

37. จากขอตกลงของ GATT ถาใหสิทธิประโยชนอันใดใหกับประเทศใดประเทศหนึ่ง สิทธิที่ดีที่สุดจะถูกปรับใชกับประเทศทุกประเทศที่เปน
สมาชิกองคการการคาโลก

38. CAN You Spot the Difference?

39. CAN You Spot the Difference?
- Import duties (tariffs) vs. any advantages of
any kinds
- Covered products vs. like products
- Conditional MFN (subject to negotiation) vs.
Unconditional MFN (automatically and
unconditionally)
- What about the similarity?

40. NT under ATIGA
Article 6: National Treatment on
Internal Taxation and Regulation
Each Member State shall accord national
treatment to the goods of the other Member
States in accordance with Article III of GATT
1994. To this end, Article III of GATT 1994 is
incorporated into and shall form part of this
Agreement, mutatis mutandis.
40
มาตรา 6 ของ ATIGA หลักปฏิบัติเยี่ยงคนชาติ
ในสวนที่เกี่ยวของกับการเก็บภาษีภายในประเทศและการปรับใชกฎระเบียบภายในประเทศ ชาติสมาชิกในอาเซียนจะปฏิบัติตอสินคาที่เปน
สินคาเหมือนกัน จะตองปรับใชหลักปฏิบัติเยี่ยงคนชาติในสวนของสินคาตามประเทศอื่นอยางสอดคลองกับหลักการภายใตมาตรา 3 ของ
ความตกลง GATT 1954 ดังนั้นแลว มาตรา 3 ของความตกลง GATT ถือวาเปนสวนหนึ่งของความตกลงฉบับนี้

41. NT under ATIGA
Article 6 National Treatment on
Internal Taxation and Regulation
Each Member State shall accord national
treatment to the goods of the other Member
States in accordance with Article III of GATT
1994. To this end, Article III of GATT 1994 is
incorporated into and shall form part of this
Agreement, mutatis mutandis.
41
ตองนำมาตรา 3 ของขอตกลง GATT มาใช

42. The concept of like products under ATIGA
Article 7: Fees and Charges Connected
with Importation and Exportation
1. Each Member State shall ensure, in accordance
with Article VIII.1 of GATT 1994, that all fees and
charges of whatever character (other than import or
export duties, charges equivalent to an internal tax
or other internal charge applied consistently with
Article III.2 of GATT 1994, and anti-dumping and
countervailing duties) imposed on or in connection
with import or export are limited in amount to the
approximate cost of services rendered and do not
represent an indirect protection to domestic goods or
a taxation on imports or exports for fiscal purposes
42
คาธรรมเนียมและเงินที่เรียกเก็บอื่นๆ สำหรับการนำเขา ตองไมเปนไปในลักษณะที่เลือกปฏิบัติ

43. National Treatment
Country A must give
same tax rate (Art. III: 2)
& same treatments (Art.
III:4) to “like products”
from other countries
Country B
D
C
E
F
B
D
C
F
E
A A A
NT = Catalyst for Trade Liberlisation
MFN= another level of non-trade discrimination
NT = usually on a reciprocity basis

44. National treatment in operation: Art III GATT
Article III:2 = NT regarding tariff barriers
1. The contracting parties recognize that internal taxes and other
internal charges, and laws, regulations and requirements affecting the
internal sale, offering for sale, purchase, transportation, distribution or
use of products, and internal quantitative regulations requiring the
mixture, processing or use of products in specified amounts or
proportions, should not be applied to imported or domestic products
so as to afford protection to domestic production.*
2. The products of the territory of any contracting party imported into
the territory of any other contracting party shall not be subject,
directly or indirectly, to internal taxes or other internal charges
of any kind in excess of those applied, directly or indirectly, to
like domestic products. Moreover, no contracting party shall
otherwise apply internal taxes or other internal charges to imported or
domestic products in a manner contrary to the principles set
forth in paragraph 1.
Can be
directly +
indirectly
Internal
taxes
/charges
In excess of
Like
Product (as
before?)
Article III:2 must be read with Art. III:1
Not to afford
protection
มาตรา 3 ขอตกลง GATT
หลักปฏิบัติเยี่ยงคนชาติ สินคานำเขาตองถูกปฏิบัติเยี่ยงสินคาในประเทศ

45. National Treatment
มาตรการทางภาษี Article III:2
• ภาษีนำเขา (ศุลกากร)
• VAT
• ภาษีสรรพสามิต
• ภาษีนํ้ามัน
• ภาษีนํ้าตาลในเครื่องดื่ม
ถาสินคาเปนสินคาเดียวกันตอง
เก็บในอัตราเทากัน ถาสินคาไม
เหมือนกัน แขงขันกัน สามารถ
เก็บที่อัตราตางกันได แตตองไม
กระทบตอการแขงขันทางการคา
มาตรการที่ไมใชทางภาษี Article
• การหามโฆษณาเหลาบุหรี่
• มาตรการจำกัดชองทางการจัด
จำหนาย เชน ยารักษาโรค
• การกำหนดกระบวนการผลิตและ
จำหนาย
ผูผลิต >> การผลิต การขนสง การจัด
จำหนาย การโฆษณา เชน การขนสงบาง
อยางตองเปน cold chain การระบุ
ขอความบนฉลาก
การปรับใชกฎหมายจะตองไมเอื้อเฉพาะ
สินคาภายในประเทศ

46. คดีของ WTO
Japan alcohol >> Shochu
Note: นโยบายของประเทศญี่ปุนแตละพื้นถิ่นจะนำผลไม หรือขาว หรือมันฝรั่งที่เปนผลผลิตที่เหลือจากการเกษตรนำมาทำเปน
เครื่องดื่มแอลกอฮอล
เคสนี้ มีการฟองวา shochu และ vodka เปนสินคา
ประเภทเดียวกัน เปนสุรากลั่นเหมือนกัน สำหรับ
นักดื่ม เปนสินคาที่ทดแทนกันได การที่ญี่ปุนเก็บ
ภาษี shochu นอยกวาสินคาประเภทอื่น เปนการ
เอื้อตอสินคาภายในประเทศ ขัดตอหลักการปฏิบัติ
เยี่ยงคนชาติ
Equal playing field คือการเลนในสนามเดียวกัน
ในทางการคาเชนราคาที่สูงกวาหรือการเขาถึงที่
ยากกวาทำใหมีความไดเปรียบเสียเปรียบในการ
แขงขันทางการคา

47. There are 3 main elements :
4. The products of the territory of any contracting party imported into
the territory of any other contracting party shall be accorded
treatment no less favourable than that accorded to like products
of national origin in respect of all laws, regulations and
requirements affecting their internal sale, offering for sale,
purchase, transportation, distribution or use. The provisions of
this paragraph shall not prevent the application of differential internal
transportation charges ...
1. There is a fiscal regulation or requirements (issued by govt)
affecting ...
2. Like products
3. The treatment of imports is less favourable than domestic
products.
National treatment in operation: Art III GATT
Article III:4 = NT regarding non-tariff barriers

48. CAN You Spot the Difference?
- Tariff measures vs. tariff and non-tariff measures
- Necessity test?
- What about the similarity
 reference to Article III:1 GATT (so not as to afford
protection to domestic production)
 All fees, all kind of tariff charges
 The concept of equal levelled-playing field

49. Exceptions under ATIGA
Article 8: General Exceptions
Subject to the requirement that such measures are not applied in a
manner which would constitute a means of arbitrary or unjustifiable
discrimination among Member States where the same conditions prevail,
or a disguised restriction on international trade, nothing in this Agreement
shall be construed to prevent the adoption or enforcement by a Member
State of measures:
(a) necessary to protect public morals;
(b) necessary to protect human, animal or plant life or health;
(c) relating to the importations or exportations of gold or silver;
(d) necessary to secure compliance with laws or regulations which are not
inconsistent with the provisions of this Agreement, including those
relating to customs enforcement, the enforcement of monopolies operated
under paragraph 4 of Article II and Article XVII of GATT 1994, the
protection of patents, trademarks and copyrights, and the prevention of
deceptive practices;
47
ขอยกเวนที่รัฐสามารถกีดกันทางการคา หรือไมปลอยใหเกิดการเปดเสรีทางการคาของสินคาเฉพาะที่รัฐเลือกมา มี
หลายขอ โดยอิงจากความตกลง GATT ที่รางหลัง WWII หลัง WWII มีประเทศที่ชนะและแพสงคราม ผูชนะเชน
UN ออกกฎ เพื่อไมใหเกิดสภาวะเหมือนสงครามโลกครั้งที่หนึ่ง สงครามโลกครั้งที่หนึ่งประเทศผูแพสงครามตอง
จายคาปฏิกรรมสงคราม เงินที่นํามาจายมาจาก 2 ทาง คือ การเก็บภาษี และการคาระหวางประเทศ แตชวงหลัง
WWI มีการกีดกันทางการคา ดังนั้นหลัง WWII จึงตั้งกฏไววาใหมีการเปดเสรีทางการคา เพื่อที่ประเทศผูแพ
สงครามจะสามารถทําการคาได และไมเกิดสงครามโลกครั้งตอๆไป แตมีบางกรณีที่รัฐสามารถกีดกันทางการคาได
ตั้งขอกีดกันทางการคา แตทำไปเพื่อปกปองศีลธรรมทางสาธารณะ เชน การซื้อขายพระพุทธรูปแลวนำไปตกแตง การขายเนื้อแมว เนื้อสุนัข
ในแงมาตรฐานการผลิต เชน การใชแรงงานเด็ก แรงงานสัตวแรงงานทาส แรงงานนักโทษในเหมือง อัญมณีจากนักโทษการเมืองในพมา ฯลฯ
การนำเขาสงออกแรเงินและทอง

50. Exceptions under ATIGA
(e) relating to the products of prison labour;
(f) imposed for the protection of national treasures of artistic, historic or
archaeological value;
(g) relating to the conservation of exhaustible natural resources if such
measures are made effective in conjunction with restrictions on domestic
production or consumption;
(h) undertaken in pursuance of the obligations under any
intergovernmental commodity agreement which conforms to criteria
submitted to the WTO and not disapproved by it or which is itself so
submitted and not so disapproved;
(i) involving restrictions on exports of domestic materials necessary to
ensure essential quantities of such materials to a domestic processing
industry during periods when the domestic price of such materials is held
below the world price as part of a governmental stabilisation plan,
provided that such restrictions shall not operate to increase the exports of
or the protection afforded to such domestic industry, and shall not depart
from the provisions of this Agreement relating to non-discrimination; and
(j) essential to the acquisition or distribution of products in general or
local short supply, provided that any such measures shall be consistent
with the principle that all Member States are entitled to an equitable share
of the international supply of such products, and that any such measures,
which are inconsistent with the other provisions of this Agreement shall
be discontinued as soon as the conditions giving rise to them have ceased
to exist.
48

51. Exceptions of Article XX
 Subject to the requirement that such measures are not applied in a manner
which would constitute a means of arbitrary or unjustifiable discrimination
between countries where the same conditions prevail, or a disguised
restriction on international trade, nothing in this Agreement shall be
construed to prevent the adoption or enforcement by any contracting party of
measures:
 (a) necessary to protect public morals;
 (b) necessary to protect human, animal or plant life or health;
 (c) relating to the importations or exportations of gold or silver;
 (d) necessary to secure compliance with laws or regulations which are not
inconsistent with the provisions of this Agreement, including those relating to
customs enforcement, the enforcement of monopolies operated under
paragraph 4 of Article II and Article XVII, the protection of patents, trade
marks and copyrights, and the prevention of deceptive practices;
 (e) relating to the products of prison labour;

 (f) imposed for the protection of national treasures of artistic, historic or
archaeological value;
E.g. Import ban on
seal products, child
labour, blood
diamonds, alcoholic
beverages (Muslim
countries),
Can ban imports
produced by
prisoners
Can ban
imports of
historical
artefacts

52.  (g) relating to the conservation of exhaustible natural resources if such
measures are made effective in conjunction with restrictions on domestic
production or consumption;
 (h) undertaken in pursuance of obligations under any intergovernmental
commodity agreement which conforms to criteria submitted to the
CONTRACTING PARTIES and not disapproved by them or which is itself so
submitted and not so disapproved;*
 (i) involving restrictions on exports of domestic materials necessary to
ensure essential quantities of such materials to a domestic processing
industry during periods when the domestic price of such materials is held
below the world price as part of a governmental stabilization plan; Provided
that such restrictions shall not operate to increase the exports of or the
protection afforded to such domestic industry, and shall not depart from the
provisions of this Agreement relating to non-discrimination;
 (j) essential to the acquisition or distribution of products in general or local
short supply; Provided that any such measures shall be consistent with the
principle that all contracting parties are entitled to an equitable share of the
international supply of such products, and that any such measures, which are
inconsistent with the other provisions of the Agreement shall be discontinued
as soon as the conditions giving rise to them have ceased to exist. The
CONTRACTING PARTIES shall review the need for this sub-paragraph not later
than 30 June 1960.
มาตรการที่เกี่ยวของกับการใชทรัพยากรธรรมชาติที่ใชแลวหมดไป หากมาตรการดังกลาวไดดำเนิน
การไปอยางสอดคลองกับการใชและการควบคุมภายในประเทศอยางมีประสิทธิผล
โดยสวนใหญคือ Natural oil and gas
การตีความอยางมีวิวัฒนาการ เชน exhaustible natural resources ในอดีตอาจหมายถึงเฉพาะนํ้ามันและแกสธรรมชาติ แตในปจจุบันอาจหมายความ
รวมถึง นํ้าสะอาด อากาศสะอาด ดินที่ดี

53. CAN You Spot the Difference?
การบ้าน ประเทศในอาเซียนสามารถใช้ข้อยกเว้นตามมาตรา 20 ของข้อตกลง GATT เพื่อกีดกันทางการค้าได้ในกรณีใดบ้าง
หาจาก Asean trade repository เช่น การห้ามนำเข้าขยะครัวเรือนของกัมพูชา ห้ามนำเข้า fresh water piranha หรือของป่าบางประเภท

54. Free Trade vs. National
Autonomy

55. Balancing Trade and…

56. The Nature and Functions of Article XX
 Article XX will be invoked and come into play only
when the measure of the CP found to be inconsistent
with another GATT provisions.
 Regularly used (attempted in the majority of cases )
 It will be invoked to justify a GATT- inconsistent
measure.
 In theory, these are limited and conditional
exceptions
Construed narrowly?
In practice Not
always the case in
the WTO!

57. Specific Exception under Art. XX GATT: Article XX
(b):
“measures necessary to protect human, animal or
plant life or health”
 (b) necessary to protect human, animal or
plant life or health;
Two tier test (Thailand-Cigarettes) :
1) The policy respect of the measure was designed to protect
human, animal plant life or health
2) The inconsistent measures for which the exception was
invoked were necessary to fulfil the legitimate objective

58. GATT (Art. XX(b)): Thailand-
Cigarettes
Thailand-Cigarettes (1990)- The Old Cigarette Case
 Thailand’s 1966 (2509) Tobacco Act, inter alia,
prohibited the importation of cigarettes and
other tobacco preparations, but allowed the
sale of domestic cigarettes.
S. 27 of the Tobacco Act = the importation or
exportation of tobacco seeds, tobacco plants,
tobacco leaves, plug tobacco, shredded tobacco
and tobacco is prohibited except by licence of
the Director-General of the Excise Department
or a competent officer authorised by him.
S. 4 of the said Act defines tobacco as "cigarettes,
cigars, other tobacco rolled for smoking,
prepared shredded tobacco including chewing
tobacco".
Licences have only been granted to the Thai
tobacco monopoly, which has imported
cigarettes only on 3 occasions since 1966;
namely in 1968-70, 1976 and 1980.

59. GATT (Art. XX(b)): Thailand- Cigarettes
(cont’)
 The US complained that the import restrictions
were inconsistent with GATT Article XI, and that
they were unjustifiable under Article XX(b).
 Thailand argued, inter alia, that the import
restrictions were justified under Article XX(b) for
many public health reasons because:
- the chemicals and other additives contained in
US cigarettes might make them more harmful
than Thai cigarettes.
- Opening the import cigarette market would
interfere with Thailand’s attempt to reduce
domestic cigarette consumption
 Thailand requested the panel to consult with
experts from the WHO).

60. GATT (Art. XX(b)) Thailand- Cigarettes
cont’
 The WHO evidence supported Thailand’s claim:
- It indicated there were sharp differences between
cigarettes manufactured in developing countries such
as Thailand and those available in developed countries
as the latter used additives and flavourings.
- The locally grown tobacco leaf was harsher than the
American one. Consequently, smoking western cigarettes
had become easier for some groups who might not
otherwise smoke (women and adolescents).
- There were a false illusion among many smokers that
imported brands were safer than the native brands
(whereas, in fact, they could equally create adverse effects
on health).
- But the WHO could not provide any scientific evidence that
cigarettes with additives were more harmful to health than
cigarettes without the additives.

61. GATT (Art. XX(b)) Thailand- Cigarettes
cont’
Whether Thailand’s measure was justifiable under Art. XX (b)
 Not an issue that Thailand’s measure contributes to the
protection of human life/health
 But it became an issue whether Thailand’s measure was
necessary
(para 73) Art. XX (b) clearly allowed CP to prioritise human
health over trade liberalisation, provided the measure was
"necessary”.
(
= Necessity Test
(no less trade
restrictive
alternatives)

62. GATT (Art. XX(b)) Thailand- Cigarettes
cont’
The measure would not be necessary and consistent with
Article XX
“if an alternative measure which it could reasonably be
expected to employ and which is not inconsistent/less
inconsistent with other GATT provisions is available to it”
(para 76) Thailand’s measures could be seen as intended to (i)
ensure the quality and (ii) reduce the quantity of cigarettes sold

63. GATT (Art. XX(b)) Thailand- Cigarettes
cont’
 Held: Thailand was in breach of Art. XX (b)
as the measures were not necessary to
protect human health, because....
As to the quality (bad chemicals etc.)
Thailand could have introduced a labelling
scheme to inform consumers about the
cigarettes’ ingredients
As to the quantity  (esp. Amongst the
adolescent and female smokers)
Thailand could have an advertisement ban.
What do you think?

64. GATT (Art. XX(b)) EC-Asbestos
EC- Asbestos (2001)
Facts:
 French decree banned the sale, use and
import of all Asbestos fibres but not other
kinds of insulated fibres
 Aimed to protect public health
 Canada which produced & exported a lot of
Asbestos fibres claimed the violation of
Article III:4, arguing that Asbestos fibres and
other kind of fibres were “like products”

65. GATT (Art. XX(b)) EC- Asbestos cont’
AB: Agreed.
- Although WTO members have a right to determine the level
of health protection they consider appropriate in a given
situation (here a total ban on Asbestos) (para 168), it has to
also be established that there is no alternative to the
measure at issue that the member could reasonably be
expected to employ’.
- Canada argued that a controlled use would be possible and
= a less trade restrictive alternative.
- But the AB held that this would not be possible to achieve
the level of protection that EC wanted. (para 174-178)
- Thus, the measure ( a total import ban) would be necessary
to protect human health.
What do you think? Why is it different from Thai
Cigarettes?
Note Brazil Tyres

66.  (b) necessary to secure compliance with
law or regulation (which are not inconsistent
with (GATT)
Two-tier test
1) Whether the measure can help securing compliance with Law
and regulation
 broadly interpreted. It captures a measure to prevent
deceptive practice, (Korea-Beef), breaches of intellectual
properties, prevent drug trafficking, etc.
2) Whether the measure was necessary to fulfil the legitimate
objective
 problematic
(low)
means-end
rationality
test
The
necessity
test

67. GATT (Art XX (d)) : Korea-Beef
Korea Beef (2000)
 USA/ Australia vs. Korea
 Korea law imposed a “duel retail system for beef”.
 Held = breach of Article III:4 as there
was a “less favourable treatments” betw.
“like” domestic and imported products.
 The next issue was whether Korea could
claim an exception under Art. XX (d)

68. GATT (Art XX (d)) : Korea-Beef (cont’)
AB:
 AB agreed with the Panel interpretation on the first element. For the second
element, the AB elaborated further...
 Stated that the word necessary could have different meaning.  drawing the
meaning from standard dictionaries, this could mean;
on one end = indispensable……
on the other end ……… = contributing to.
 The measure would unlikely be necessary if there were other alternative
measures which were less trade restrictive means available. (cf. Thailand-
Cigarettes and Asbestos)
 When deciding whether the measure is necessary, the parties must consider
1) The importance of common or value the measures intend to
protect. The more important it is, the easier to become necessary.
2) The extent that measures contribute to the realisation of the end
pursue
compared with alternatives.
3) The level of trade restriction that the measure creates compared with
alternatives .
ABSOLUTELY
NECESSARY
Weighing and
Balancing Test

69. Article XX (g): relating to the
conservation of exhaustible natural
resources
Relating to the conservation of
exhaustible natural resources.
Prima facie, what do
you think are
exhaustible natural
resources
Similar/ different
from necessary to?
Shrimp/ Turtle Case

70. Article XX (g) Shrimp/ Turtle (cont’)
 After the Panel’s report  US measure was held to
have violated Article XI GATT and that it could not
invoke Art. XX (g). US only appealed on the latter.
AB:
 The term natural resources in Article XX (g) included
living resources such as sea turtles.
 But this is unconventional as … they are renewable (
the complaining members stressed on this point).

71. Article XX (g) Shrimp/Turtle (cont’)
 AB referred to the drafting history of Article XX (g), there
were discussion of mineral resources but AB said the
wording of “natural resources ” had to be read “by a treaty
interpreter in the light of contemporary concerns of the
community of nations about the protection & conservation of
the environment”. i.e. Long gone the day where the term
natural resources could only refer to exhaustible minerals or
other non-living natural resources. (para 129-31)
 For an evidence that sea turtles = exhaustible natural
resources, AB looked to the inclusion of sea turtles in
Appendix I (Species threatened with extinction) under CITES
(Convention on International Trade in Endangered Species of
Wild Fauna and Flora)
 AB declined to comment on the “extra-territorial” application
of the US law, stating that the US was able to do so because
sea turtles at issue were migrating to and from U.S. water
Note Art. 31
VCLT

72. Article XX (g) Shrimp/Turtle (cont’)
 AB referred to the drafting history of Article XX (g), there
were discussion of mineral resources but AB said the
wording of “natural resources” had to be read “by a treaty
interpreter in the light of contemporary concerns of the
community of nations about the protection & conservation of
the environment”. i.e. Long gone the day where the term
natural resources could only refer to exhaustible minerals or
other non-living natural resources. (para 129-31)
 For an evidence that sea turtles = exhaustible natural
resources AB looked to the inclusion of sea turtles in
Appendix I (Species threatened with extinction) under CITES
(Convention on International Trade in Endangered Species of
Wild Fauna and Flora)
 AB declined to comment on the “extra-territorial” application
of the US law, stating that the US was able to do so because
sea turtles at issue were migrating to and from U.S. water.
A broad, “evolutionary”
interpretation approach!
Green light to the protection of
living natural resources provided
that these partly exist/stay in the
countries making the claim.

73. Article XX (g) Shrimp/Turtle (cont’)
 What is a minimum limit there
the natural resources must partly
exist/stay in the countries making the claim
can be other species, energies, forests??
What else?
 What is the maximum limit
 Where the species do not migrate ?

74. Article XX (g) Shrimp/Turtle (cont’)
 Whether Section 609 related to the conservation of
exhaustible natural resources.
 This means “primarily aimed at” i.e. Must contribute
to the end pursued.
 AB said Section 609 = primarily aimed at protecting
sea turtles. (although this was rather indirectly as
Section 609 actually aimed at changing other states’
policy relating to sea turtles).
 AB established that in order to use Article XX, the CP
also needed to satisfy the chapeau of Article XX.
Means-end
rationality
Test

75. Article XX (g) Shrimp/Turtle (cont’)
Chapeau of Article XX
- It is necessary to prevent the abuse of Article XX.
- Balance the right of the MS with their duties as WTO
member. i.e. can invoke and exception but needs to do
so under certain conditions.
- AB stated that there were criteria in the chapeau that
must be fulfilled
i) No arbitrary discrimination between countries
where the same conditions prevails
ii) No unjustifiable discriminations between
countries where the same conditions prevail
iii) No disguised restriction on international trade.

76. Article XX (g) Shrimp/Turtle (cont’)
Unjustifiable discrimination
- Section 609 in effect = required all exporting members to
adopt the essentially same policies/ methods in conserving sea
turtled as enforced in the US. No consideration that different
courtries would be subject to different conditions.
- The measures adopted by the complaining members had
been endorsed by numerous international agreements, but
the US didn’t recognised these. It would be essential that
the protection of highly migratory species like sea turtles
would require co-operative efforts from many countries.
- US concluded serious bilateral /multilateral agreements
with certain CPs but not the complaining members, esp. the
Inter-American Convention for the protection of turtles. +
14 countries in Western Atlantic had a grace period of 3
years whereas others did not have this.
= unjustifiable discrimination

77. Article XX (g) Shrimp/Turtle (cont’)
Arbitrary discrimination
- AB held that rigidity and inflexibility of
the measures also constituted arbitrary
discretionary as other countries wishing
to export shrimps to the US had to adopt
essentially the same measures as the US
although these might not be appropriate
to their local conditions.
- Lack of transparency: no formal reasons
given if rejected, no appeal procedures
available
= arbitrary discrimination

78. Article XX (g) Shrimp/Turtle Case
cont’
Disguised Restriction on international trade?
- Later in Shrimp/ Turtles II (Article 21.5-
Malaysia para 5.138-5.144) took the approach
in Japan-Alcohols to consider whether the
“design, architecture and revealing structure of
the measure” to see whether the measures
tried to pursue the legitimate policy objective
claimed or to in fact, merely pursue trade-
restrictive, protectionist objectives”
- But it was not an issue in Shrimp/Turtles I,
since the measure was already found to be
inconsistent with the chapeau of Art. XX GATT.

79. Transparency
Examples
- Article 7 (2) each Member State shall
promptly publish details of the fees and
charges that it imposes in connection
with importation or exportation, and
shall make such information available
on the internet.
77

80. Dispute Settlement Mechanism under ATIGA
Asean Consultations to Solve Trade and
Investment Issues (ACT) and ASEAN
Compliance Monitoring Body (ACB)
(under the Bali Concord II)
Or
ASEAN Protocol on Enhanced Dispute
Settlement Mechanism
(signed in 2004 in Vientiane and
amendments thereto)
78

81. Dispute Settlement Mechanism under ATIGA
- ASEAN Protocol on Enhanced Dispute
Settlement Mechanism (see attached);
1. Consultations
2. Good Offices, Conciliation or Mediation
3. Panels
4. Appellate Review
5. Enforcement: time frame (445 days)
compensation and the suspension of
concessions
79

82. Other Forms of Dispute Settlement
Mechanism
- 2010 Protocol to the ASEAN Charter
on Dispute Settlement Mechanisms
adopted in Hanoi 8 April 2010 (see
attached);
1. Consultations
2. Good Offices, Conciliation or
Mediation
3. Arbitration/The ASEAN Coordination
Council
4. Enforcement: arbitral award
80

83. The future is still unclear!
Then what can we do?
๑๕

84. Thus, policy makers and enforcement
officers have to….
Autonomy of the state
• Recognised other
policy goals
• Issuing suitable law The goal of ASEAN
• Towards single market and
production base
• Towards peace and
prosperity
๑๙

85. Let’s learn from the EU
ASEAN and its member states
๒๐