The objective of this article is to critically review the case law on public morals exception in the multilateral trading system and argue against the World Trade Organization (WTO) Appellate Body’s exceedingly deferential approach to the meaning and identification of public morals in international trade disputes. Admittedly, the WTO Appellate Body’s judicial minimalism approach to trade dispute settlement has so far prevented it from making any broad claims about public morals exception. Nevertheless, I argue that the Appellate Body has already waded into treacherous waters. Going forward, the WTO Appellate Body must be cautious so as not to permit moral imperialism and put the delicately balanced multilateral trading system at grave risk. For this purpose, I propose a more nuanced approach to define public morals as well as manage its extraterritorial application in international trade law.
Journal of World Trade