To say that there is a tension between nation State sovereignty and the instruments
of global governance would be to state the obvious. However, in an increasingly
interdependent world, it is crucial that this tension is managed equitably, effectively,
and in a predictable and stable manner.
The covered agreements of the WTO and the jurisprudence that has developed
around them over the past two decades provide an excellent example of how this
tension can be managed. There are two inter-related themes in WTO law and its
jurisprudence which relate to the interface of sovereignty with global governance:
• Coherence of WTO law with other norms of international law
• Regulatory autonomy of the State to pursue legitimate non-trade concerns
The Appellate Body has emphasized both principles. On the issue of regulatory
autonomy in particular, there is already a substantial body of case law which has
emerged from the Appellate Body over this period.
A central objective of the dispute settlement system of the WTO is to provide
security and predictability to the multilateral trading system while preserving the
rights and obligations of Members, without adding to or diminishing them. The
provisions of the various WTO Agreements reflect a balance between the interests
of all WTO Members who are in various stages of development. In order to serve
these goals, an objective basis for interpretation of the provisions of the covered
agreements is necessary. This basis is provided by the customary rules of interpretation
of public international law, and the Appellate Body in particular, has
usually, though not exclusively, relied on the provisions of the Vienna Convention
on the Law of Treaties for the purpose.