LANGUAGE

United States v. Thailand

The United States asked the Panel to recommend that Thailand eliminate its restrictions on cigarette imports and bring its tax laws into conformity with its obligations under GATT. Noting various measures available to Thailand to control the negative consequences of tobacco besides restricting importation, the Panel decided that the restrictions were not an acceptable exception to GATT requirements. However, the Panel found in favor of Thailand with respect to its tax laws, concluding that legislation merely giving the executive the possibility to act inconsistently with GATT could not, by itself, be in violation of GATT.