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1 – 10 of 279The increased integration of national economies and the belief that international trade is beneficial to societies has led to the formation of the World Trade Organization (WTO)…
Abstract
Purpose
The increased integration of national economies and the belief that international trade is beneficial to societies has led to the formation of the World Trade Organization (WTO), to regulate the conduct of international trade by national governments. Using US domestic legislation and case laws, as well as the provisions of the General Agreement on Tariffs and Trade (GATT) 1994, the purpose of this paper is to analyze the legality or otherwise of the recent imposition of unilateral trade tariffs by the USA on China.
Design/methodology/approach
This paper adopts a doctrinal approach through a critical review of extant legislation and case laws. Drawing from existing literature in the area of WTO and international trade law, the paper argues that the imposition of tariffs by the Trump administration is outside the scope provided for by the WTO rules.
Findings
The paper finds that the imposition of unilateral tariffs by the Trump Government, while in breach of US domestic legislation and case laws, as well as the country’s obligations under the GATT 1994, portends a clear danger to the continued existence of the WTO and to international trade in general.
Originality/value
This paper is an original study of the author, which extends the body of knowledge in the area of international trade law, by analyzing the possible implications of the imposition of trade tariffs by the USA on China and offering suggestions on how the impasse can be resolved.
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The paper is prompted by the US–China trade war and its implications for the sustenance of the multilateral trading system. The two rivals resorted to “self-help” without recourse…
Abstract
Purpose
The paper is prompted by the US–China trade war and its implications for the sustenance of the multilateral trading system. The two rivals resorted to “self-help” without recourse to the World Trade Organization (WTO) dispute settlement system, flouting the WTO as an adjudicator in trade disputes. This paper aims to analyze the drawbacks in the settlement system and examines the urgent need for a retroactive remedy.
Design/methodology/approach
This paper adopts desk-review and jurisprudential analysis of the relevant rulings of the WTO dispute settlement body. Using desk-review, primary sources such as the relevant domestic legislations invoked by the USA and China to trigger the trade war were discussed and critically analyzed.
Findings
This paper finds that the unilateral and protectionist actions that characterize the trade war can be linked to the loss of confidence in WTO remedies to redress members’ retroactive economic losses. This finding is useful in arguing for the incorporation of a retrospective monetary remedy to forestall the reoccurrence of a similar trade war and save the WTO from being dysfunctional.
Originality/value
Although, whether there should be retroactive remedies in the settlement system has been long debated, this paper makes a significant contribution by highlighting why the drawbacks in the settlement system have become so prominent in the context of this trade war. This paper strengthens the urgent need for WTO dispute settlement reform to prevent a reoccurrence of another global distortion of trade.
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Stephanie Garibaldi and Felicity Deane
The purpose of this paper is to demonstrate that the national security exception will not allow governments to respond to cyberspace threats within the confines of the world trade…
Abstract
Purpose
The purpose of this paper is to demonstrate that the national security exception will not allow governments to respond to cyberspace threats within the confines of the world trade organization (WTO) rules.
Design/methodology/approach
This paper is a desktop study of international trade laws with a specific focus on the convergence of cybersecurity measures and the national security exception provisions of the WTO.
Findings
The trends towards cybersecurity measures may mean there will inevitably be an evolution of trade norms. The question is, will the collective of the WTO be a part of the evolution, or merely an observer? In the authors’ view, it is crucial that it is the former.
Originality/value
This study makes three contributions. It provides a literature review and discussion on cybersecurity and the impact on trade. It demonstrates that the national security exception provision will not excuse these measures, and it aims to underscore the importance of the WTO as a community of nations where negotiation on important global issues is possible.
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Longyue Zhao and Yan Wang
World Trade Organization (WTO) accession marked a new beginning for China's economic, legal and institutional reforms and rapid integration with the rest of the world. The purpose…
Abstract
Purpose
World Trade Organization (WTO) accession marked a new beginning for China's economic, legal and institutional reforms and rapid integration with the rest of the world. The purpose of this paper is to review China's post‐WTO transition experience, synthesize and update studies on China's pattern of trade and structural transformation, and provide both positive and negative lessons for other developing countries.
Design/methodology/approach
The paper has broadly reviewed the latest policy changes after China's WTO accession, and literatures on China's trade and economic development issues in order to understand the Chinese success and its speciality, and draw some useful lessons for both China's decision‐makers and other developing countries.
Findings
There are two main findings: first, market liberalization alone is not sufficient, and economic system reform and the liberalization are closely related and complement and promote each other. Second, experimentations via special economic zones (SEZs) and opening to foreign direct investment (FDI), which facilitated and supported cluster development and learning‐by‐doing, are needed for industrial upgrading and export competitiveness.
Originality/value
The paper demonstrates the wisdom of China's simultaneous pursuit of domestic economic system reform, and opening to the international market. However, China has also paid a high social and environmental cost for its rapid growth. It is important for developing countries to have an exclusive, balanced and sustainable strategy in the future development.
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The appropriateness of retaliatory trade measures in the World Trade Organization dispute settlement process have increasingly come under scrutiny in recent years. Several Members…
Abstract
The appropriateness of retaliatory trade measures in the World Trade Organization dispute settlement process have increasingly come under scrutiny in recent years. Several Members and commentators alike have recommended large-scale amendments to the Dispute Settlement Understanding (DSU) to provide alternatives to retaliatory measures, with the most notable including compensation, collective retaliation, and increased special and differential treatment for developing countries and/or widespread loss of privileges for non-conforming respondents.
Unfortunately, many of the proposals failed to first identify the aims and objectives of the retaliatory phase, or even of dispute settlement more generally. This chapter takes a more holistic approach in its analysis of whether any of the current proposals will improve (or harm) the system. In doing so, this chapter will first assess the effectiveness and appropriateness of retaliatory trade measures by evaluating the goals and objectives in which it is designed to achieve. It will then evaluate some of the more prominent proposals for amending the DSU under the same framework. Taking such an approach will allow for a more comprehensive review and will reveal not only the problems with retaliatory trade measures, but also its positive aspects, and not only the positive aspects of the suggested alternatives but also where they may be detrimental to the system.
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Khalid Ahmed and Wei Long
The purpose of this paper is to analyze the legal complications prevail towards the architecture of mutual policy design between trade and climate change regimes. The recent…
Abstract
Purpose
The purpose of this paper is to analyze the legal complications prevail towards the architecture of mutual policy design between trade and climate change regimes. The recent literature on this topic is mainly focused on commons and has significantly ignored the existing regulatory constraints between both the regimes. Therefore, in this study relevant WTO and environmental laws are critically examined in order to bring another side of literally work on trade‐climate policy framework. Moreover, the time factor, role of developing countries and two approaches are also discussed that are important constituents to be considered during ongoing climate change multilateral talks.
Design/methodology/approach
This paper has six parts in total. Part one comprises of “Introduction”, part two gives “Overview of relevant WTO and climate change regulations”, part three describes “Antithesis of WTO and climate change rules” and explains the differences that both regimes posses in the basics of their nature, part four enumerates that how to galvanize the anticipated disputes among both the regimes, part five is focused on the participation of developing countries and their possible reservations towards climate policy and, part six gives some concluding remarks.
Findings
This study found four major points of caution while architecting climate change policy. First, the climate change policy gives excuse to certain economies to protect their domestic industry, which is supposedly the violation of WTO rules. Second, the disputes arise at WTO platform from the climate friendly trade policies would be a new inconvincible challenge. Third, the GATT article XX (general exceptions) and agreement on subsidies and countervailing measures (ASCM) are still not clearly defined under climate change regime. Fourth, the position of least developed countries (LDCs), there is no action plan as these countries are the most affected due to possible stringent trade‐climate policies.
Research limitations/implications
This research posses potential policy implication for both governments and international organizations, and provides new direction to trade and climate change researchers. It opens the way to critically examine the legal issues addressed in this paper which subsequently help both trade climate change regimes to overcome such regulatory differences with mutual consensus.
Practical implications
As policy implication this study suggests that what has been achieved during last two decades over climate change issue, and how long would it take to achieve the reasonable targets? In‐fact, the past work has succeeded to address the climate change as the global issue and it needs to be solved jointly but there is still a long way to make potential progress in order to architect the comprehensive policy and designing of multilateral agreements. It needs more time to constitute a climate change regime free from individual countries' political and economical interests and consensus amongst all major countries and group.
Originality/value
Most the current literature only focuses common options between trade and climate change policy regimes and significantly ignores the potential legal constraints. In this regards, this study fills existing gap in trade and climate change policy constraints and gives another new direction for policy makers.
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Abstract
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This paper is prompted by the dissatisfaction of developing countries regarding the grant of special and differential treatment (SDT) under the legal framework of the World Trade…
Abstract
Purpose
This paper is prompted by the dissatisfaction of developing countries regarding the grant of special and differential treatment (SDT) under the legal framework of the World Trade Organisation (WTO). As a result of such dissatisfaction, the Doha Round of multilateral trade negotiations explicitly called for a review of such treatment with a view to making it more precise, effective and operational. This mandate has not yet been met to the satisfaction of many developing countries. This paper aims to provide an alternative way of examining and evaluating the contestation which exists regarding SDT in the WTO.
Design/methodology/approach
This paper uses the conceptual framework provided by the economic contract theory and in particular, the concept of the incomplete contract to provide a scaffold for analysing SDT. This approach is intended to offer insights beyond those elucidated so far in the literature on the topic.
Findings
This paper, by using an economic contract theory approach, finds that SDT is constructed as an incomplete contract. Furthermore, the suboptimal outcomes associated with incomplete contracts are apparent in the constitution of SDT. This finding is useful in both an evaluative and programmatic sense, providing us with an alternative entry point to explain some of the shortcomings with SDT, as well as garnering us with a useful conceptual tool to think upon how SDT can be improved.
Originality/value
The paper contributes to the literature on SDT within the WTO in particular and differential treatment in international law in general. Drawing on literature on the WTO as an incomplete contract, the paper provides an original frame for analyzing SDT and draws attention, in particular, to the utility of the economic contract theory as a programmatic and evaluative frame for SDT and differential treatment more generally.
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The purpose of this paper is to provide a holistic and cohesive overview of the development of GATT, Article XX; critically focussing, in particular, on whether the interpretation…
Abstract
Purpose
The purpose of this paper is to provide a holistic and cohesive overview of the development of GATT, Article XX; critically focussing, in particular, on whether the interpretation of the provision permits developed member states to embark on unilateral and protectionist actions.
Design/methodology/approach
The methodology for this paper was to assess and review the developing jurisprudence of the World Trade Organization (WTO) that relates to the use of Article XX. The paper adopts a chronological critique to analyse the development of the law; included in this is academic theory that underpins and proffers an explanation for the development.
Findings
This paper suggests that while Article XX exists as a potential target to permit unilateral action by developed nations, it does not create a guise for unilateralism and protectionism due to the interpretation afforded to the “Chapeau”.
Practical implications
The paper demonstrates an expansive collection of WTO jurisprudence and case authorities to illustrate the overarching interpretation of Article XX; in doing so, it allows those associated with the WTO to gain a practical overview of the holistic workings of Article XX.
Social implications
Through demonstration of Article XX, and its interpretation, this paper outlines the social values and norms most likely to enjoy a privileged status to override WTO obligations. This paper also espouses what social values may develop in the future to be classified within Article XX.
Originality/value
This paper provides an original insight by considering holistically, rather than narrowly, the interpretation of Article XX.
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