GATT-consistency of national legislation
GATT-consistency of national legislation: under the Protocol of Provisional Accession national legislation in effect before 1 January 1948 was allowed to remain in force even if it was inconsistent with the provisions of the GATT. In other words, such legislation was grandfathered. Laws passed after that date had to be in conformity with the GATT, though certain exceptions, for example in the form of strictly circumscribed waivers, are possible. In the Manufacturing Clause case, the panel found that amendments to grandfathered legislation may be possible if they do not make it more inconsistent with the GATT, or if they do not cancel rightful expectations of other members. Another panel ruling, this time in the Superfund case, held that the mere existence of national legislation permitting discretionary action inconsistent with the GATT did not constitute a violation of obligations under the GATT.
Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf
Web site to visit: http://ctrc.sice.oas.org
Author of the text: W. Goode
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