Justifying trade sanctions: exceptions and defences under WTO Law

This paper explores the defences available to States for justifying unilateral economic sanctions that appear prima facie inconsistent with WTO rules. It focuses on two key types of sanctions: those imposed in the context of armed conflicts and those aimed at inducing compliance with non-WTO international obligations. The paper first examines whether such sanctions can be justified under the WTO's general and security exceptions. Contrary to the prevailing assumption that these sanctions can be straightforwardly accommodated within these exceptions, the paper argues that their justification is considerably more complex and nuanced. While some sanctions may clearly fall within these exceptions, others require significant legal creativity to fit within their scope. In view of this, the paper investigates whether the defence of countermeasures under the general international law on State responsibility can be invoked by respondents in WTO disputes. It argues that this defence is residually available under WTO law and can be employed to justify trade sanctions adopted as a means of implementing the target State's international responsibility.