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In light of this general principle, we will consider whether Article XXIV authorizes measures which Articles XI and XIII of GATT and Article 2.4 of the ATC otherwise prohibit. In view of the presumption against conflicts, as recognized by panels and the Appellate Body, we bear in mind that to the extent possible, any interpretation of these provisions that would lead to a conflict between them should be avoided.”
It is clearly implied by the ruling above that, in the WTO system, any interpretation of the covered agreements that would lead to a conflict between them should be avoided. In this respect, as to WTO rules of conflicts, in the context that all WTO agreements were negotiated “at the same time, by the same Members and in the same forum”, the principle of effective interpretation is recalled. What a principle is it?
As ruled by the Panel in Japan-Alcoholic Beverage (DS8/DS10/DS11), effective interpretation is a principle “whereby all provisions of a treaty must be, to the extent possible, given their full meaning so that parties to such a treaty can enforce their rights and obligations effectively…. this principle of interpretation prevents
from reaching a conclusion on the claims … or the defense …, or on the related provisions invoked by the parties, that would lead to a denial of either party''s rights or obligations.” 6 This ruling is upheld by the Appellate Body when ruling that, “
fundamental tenet of treaty interpretation flowing from the general rule of interpretation set out in Article 31 is the principle of effectiveness (ut res magis valeat quam pereat). In United States - Standards for Reformulated and Conventional Gasoline, we noted that ‘
ne of the corollaries of the ‘general rule of interpretation’ in the Vienna Convention is that interpretation must give meaning and effect to all the terms of the treaty. An interpreter is not free to adopt a reading that would result in reducing whole clauses or paragraphs of a treaty to redundancy or inutility’.” 7
It is clear that the application of the principle of effective interpretation is consistent with Art. 3.2 of the DSU, which states that ‘the DSB cannot add to or diminish the rights and obligations provided in the covered agreements’. As a matter of fact, it may be the case that in nearly all instances, the ordinary meaning of the terms of the actual description in a covered agreement accurately reflects and exhausts the content of the expectations on improved competitive relationship. It is clearly the case that most descriptions are to be treated with the utmost care to maintain their integrity precisely because, on their face, they normally constitute the most concrete, tangible and reliable evidence of commitments made.
IVThe Status of Legitimate Expectations in Interpretation
The principle of good faith prohibits any conduct of parties to an agreement that aims at nullification or impairment of the proper meaning and purpose of the agreement. However, does good faith interpretation under Art. 31 of the Vienna Convention require, as ruled by a panel, the protection of so-called legitimate expectations? In this respect, the Appellate Body in India-Patent Protection (DS50) rules: 8
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