Extraterritoriality, Externalities, and Cross-Border Trade: Some Lessons from the United States, the European Union, and the World Trade Organization

Abstract

In this article, process and production method (PPM) rules are analyzed under three jurisdictions: the United States, the European Union (EU), and the World Trade Organization (WTO. The approach is justified by the fact that their rules on interstate trade reflect very similar basic objectives related to anti-protectionism. Moreover, the regimes, to a large extent, share the same structure of rules on prohibition balanced with rules on justification. All in all, the regimes reveal similar syntax. The comparability of the U.S. Dormant Commerce Clause Doctrine with both WTO law and EU free movement law has been highlighted already in previous research.