This paper offers
a comprehensive study of the jurisprudence on the ‘as a result of unforeseen
developments’ test under the WTO's safeguards (SG) rules. It contributes to the
existing scholarship by making three fresh arguments. First, the Appellate
Body's decision to ‘revive’ this test as a prerequisite for the application of
SG measures is not necessarily incompatible with the drafting record of the SG
Agreement, even though this agreement does not make explicit reference to the
test. Second, the test is not excessively difficult to satisfy under the
standard of review established by case law, even though governments failed to
pass it in almost all SG disputes to date. Third, in sharp contrast, the recent
US–Safeguard Measure on PV Products decision took a strikingly more deferential
approach which fell far short of the established standard of review, leading to
the first and only decision in which the test was found to be satisfied. This
decision has arguably created a new standard which could lead to abuse of SG
measures and damage to the dispute settlement system and hence should be
avoided in future disputes.
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