Balance-of-Payments Restrictions

B.1.1 Article XVIII:11 of the GATT 1994, Ad Note   back to top

B.1.1.1 India — Quantitative Restrictions, para. 114
(WT/DS90/AB/R)
 

We agree with the Panel that the Ad Note, and, in particular, the words “would thereupon produce”, require a causal link of a certain directness between the removal of the balance-of-payments restrictions and the recurrence of one of the three conditions referred to in Article XVIII:9. …
 

B.1.1.2 India — Quantitative Restrictions, para. 115
(WT/DS90/AB/R)
 

We also agree with the Panel that the Ad Note and, in particular, the word “thereupon”, expresses a notion of temporal sequence between the removal of the balance-of-payments restrictions and the recurrence of one of the conditions of Article XVIII:9. …
 

B.1.2 Article XVIII:11 of the GATT 1994, Proviso   back to top

B.1.2.1 India — Quantitative Restrictions, paras. 126, 128
(WT/DS90/AB/R)
 

… we are of the opinion that the use of macroeconomic policy instruments is not related to any particular development policy, but is resorted to by all Members regardless of the type of development policy they pursue. …
 

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We believe structural measures are different from macroeconomic instruments with respect to their relationship to development policy. If India were asked to implement agricultural reform or to scale back reservations on certain products for small-scale units as indispensable policy changes in order to overcome its balance-of-payments difficulties, such a requirement would probably have involved a change in India’s development policy.