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Chicago Journal of International Law

Abstract

The Comment is divided into seven sections. Section II explores the confusion surrounding the WTO's jurisprudence over Article 111:2. Section III discusses Article XX's exemptions from the GATT and Article III, particularly the environmental exemptions embodied in Articles XX(b) and XX(g), and explains how Article XX's chapeau narrows the scope of these exemptions. Section IV discusses the WTO's adoption of the "precautionary principle" and how this doctrine may signal greater WTO deference to domestic environmental policies. Section V merges the previous three parts and advocates for a step-by- step test that a WTO Panel should use in evaluating a "green tax" dispute. Section VI applies this proposed test to the Chinese engine size tax and draws some conclusions on what types of green taxes will comply with the GATT. Section VII concludes that facially neutral green taxes should usually be upheld by the WTO.

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