The General Agreement on Tariffs and Trade (GATT) was intended to lower tariffs and reduce barriers on the global trade. This agreement had been transforming from post second world war, and it had been previously intended to reconstruct the global economic destruction. Although the GATT’’s regulation contains more economic aspects as such non-discriminatory measures, it also accommodates the environmental protection contained in Article XX that might be acted by the members. However, the article XX (b) and (g) General Exception are still debated and the definition of some terms as such ‘exhaustible resource’ is not agreed globally. Furthermore, to define ‘exhaustible resource is usually referring to the Article XI:2 (a). As a result, this leads various definition and uncertainty of law. It might further be also contributing more power dependence than law certainty, whereas the new GATT 1997 was designed to attract more member, not only developed countries but also developing ones. Statistically, when the developing countries challenge on trial against developed ones, the Panel or AB might be siding to the developed by interpretating some vague terms.
This dissertation is attempting to show how the terms is defined and which countries are benefited from the interpretation. Recently, the Indonesia -Measure in Raw Materials that is still in the appeal process is the main debate whether it justifies the Article XX or not.
The focus of discussion of this dissertation is on the interpretation on the Article of XX (b) and (g) by relating to the Article XI of the GATT. Some definitions are compared to the similar cases such as the China – Measures in certain raw materials, Canada -Herring and salmon, and further it views a wider definition that is in the Turtle / Shrimp Case. The Indonesia – Measure Relating to Raw Materials is examined. Ultimately, the conclusion of this dissertation draws on relevant cases to classify whether Indonesia’s measures in raw material are inconsistent with the Article XI. Further, whether the Panel or Appellate Body have solved the interpretation issues on exhaustible resources or not, and that it shows the stronger WTO’s members are more likely benefited.