Abstract
This is a study of fragmentation of the multilateral trading system through regionalism. It evaluates whether and to what extent regional trade agreements have conflicted with WTO law. The substantive and dispute settlement aspects of conflict are the main focus of this paper. Sections of this paper cover an overview of multilateralism in international trade law, the WTO as a universal regulator of world trade, the proliferation of regional trade agreements, and the general implications of regionalism in trade. The main argument presented is that the proliferation of RTAs gradually erodes the WTO’s core principle of non-discrimination, and consequently impairs the coherence of international trade law.
Highlights
The multilateral trading system is facing a great danger of fragmentation
Multilateralism, is increasingly becoming ‘clogged by trade barriers created by the proliferation of preferential regional trading blocs’. 1 This paper explores the fragmentation of the multilateral trade regulation system (World Trade Organization or WTO law) by analysing whether and to what extent Regional Trade Agreements (RTAs) have conflicted with the Multilateral Trading System (MTS)
In order to fully assess possible conflicts between the trading systems and laws, this study finds it essential to pursue a wide definition of conflict of laws. like the Panel has done in EC-Bananas III, i.e. including conflicts that arise if a party ‘cannot simultaneously comply with two different agreements’, and comprising potential conflicts that may occur if a party freely chooses to take advantage of a right or an exception in one agreement, which would result in a breach of the other agreement
Summary
The multilateral trading system is facing a great danger of fragmentation. Its modus operandi, multilateralism, is increasingly becoming ‘clogged by trade barriers created by the proliferation of preferential regional trading blocs’. 1 This paper explores the fragmentation of the multilateral trade regulation system (World Trade Organization or WTO law) by analysing whether and to what extent Regional Trade Agreements (RTAs) have conflicted with the Multilateral Trading System (MTS). 1 This paper explores the fragmentation of the multilateral trade regulation system (World Trade Organization or WTO law) by analysing whether and to what extent Regional Trade Agreements (RTAs) have conflicted with the Multilateral Trading System (MTS). The potential for conflicting rules and clashing courts has, increased immensely It is from this premise that this paper examines how international trade law is fragmented through regionalism. The study commences with a background overview of the WTO as a multilateral or universal institution for the regulation of international trade This is followed by an examination of the proliferation of RTAs; the rules governing the relationship between the WTO and RTAs explaining instances of conflicts of rules and interpretation; and case studies of conflicts in dispute settlement. WINTER ISSUE relationship through an institutional and regulatory perspective, rather than an economic perspective
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