Reforming GATT 1994 Article XXI: Towards Greater Transparency and Institutional Efficiency

This paper looks at problems with Article XXI(b) of GATT 1994. Nowadays, several countries use the concept of " national security exception" to take some actions that might break GATT rules when they believe the actions they take are protecting their " essential security interests." By analyzing the cases United States — Trade Measures Affecting Nicaragua and Saudi Arabia — Measures Concerning the Protection of Intellectual Property Rights (DS567) , this paper finds some main problems of this Article: first, the words "essential security interests" are not clearly defined, and second, there are no clear rules on how and when countries can use this exception. This paper will use ideas from liberal institutionalism and realism, and suggest solutions like making the process more open and clarifying what "essential security interests" means in order to balance countries' rights and the need to keep the WTO system fair and effective.