This is from Jeff Schott of the Peterson Institute:
Consideration should be given to invoking GATT Article XXI, which provides exceptions for national security reasons from rights and obligations under the World Trade Organization (WTO), for example. Invoking this WTO exception would allow across-the-board actions against Russia without prior notification or even justification. The national security exception of Article XXI is that broad. In brief, the United States and the European Union could remove in one step all the WTO benefits they accorded Russia when it acceded to the WTO in August 2012. Doing so would disrupt bilateral trade and investment, possibly kicking tariffs back up to Smoot-Hawley levels of the 1930s.
I am not advocating such drastic action at this point, but note that it is easy to do and compatible with international law. Sending a signal that both US and EU leaders are seriously considering such measures under dire contingencies could deter possible escalation of Russian military engagement in Ukraine. As such, it would complement current diplomatic efforts to resolve the crisis.
GATS Article XIV bis may be more important here than GATT Article XXI, but beyond that, let me ask the following: Would this be easy to do? Or would Russia bring legal challenges and make it difficult?
