World Trade Organization Research Articles

Trade liberalization, labor market power, and misallocation across firms: Evidence from China's WTO accession

This paper studies the impact of trade liberalization on the heterogeneity of labor market power among manufacturing firms, which is a potential source of misallocation. The model shows that heterogeneity of labor market power distorts the allocation of the factors of production, and the variance in the natural log of the markdown serves as a sufficient statistic to infer its negative impact on overall production efficiency. Using China's accession to the World Trade Organization (WTO) as a natural experiment, the empirical results suggest that lower input tariffs decrease the variance in the natural log of the markdown, which reflects the improvement in misallocation. In contrast, reductions in output tariffs have no significant effects.

Harmonizing innovation and regulation: The EU Artificial Intelligence Act in the international trade context

The European Union's Artificial Intelligence Act focuses on establishing harmonized rules across EU Member States so that AI systems are safe, transparent, and respectful of existing laws and fundamental rights. It introduces a risk-based regulatory approach, classifying AI applications by risk levels and imposing stringent compliance requirements on high-risk applications. The paper critically examines the Act's provisions, including its prohibitions on certain AI practices, requirements for high-risk AI systems, and mandates for transparency and human oversight. The paper examines the implications of the Act for international trade and technological regulation, particularly in the context of the World Trade Organization's Technical Barriers to Trade (TBT) Agreement. It addresses the Act's potential impact on developing countries, highlighting concerns that the Act's uniform standards could potentially exacerbate the digital divide and create barriers in global AI innovation and trade. The paper suggests incorporating flexibility and differential standards in the Act, enhancing technical assistance for developing countries, and advocating the EU's active participation in global standard-setting.

How Product Standards Influence Tea Exports? Empirical Evidence from India

India has witnessed a declining trend in tea exports in the recent period, which can partly be attributed to competition from exporters (e.g., Kenya and Sri Lanka) enjoying price advantages over the Indian varieties. However, although after the inception of the World Trade Organization (WTO) in 1995, the tariff barriers on Indian tea exports have come down across developed partners, the incidence of non-tariff barriers (NTBs) has emerged as a challenge in many destinations, with a possible dampening effect on exports. The present analysis attempts to analyse whether the imposition of product standard related measures, particularly sanitary and phytosanitary (SPS) and Technical Barriers to Trade (TBT) interventions, may have negatively influenced Indian tea exports over the period 1996–2021. Rather than considering the mere presence of SPS–TBT standards in major partner countries, their potential impacts on Indian tea exports have been determined by analysing the stringency levels of the corresponding notifications submitted to the WTO. The constructed stringency patterns are then incorporated into the Poisson pseudo maximum likelihood estimation models. The observed negative influence of standard-related measures in partner countries on Indian tea exports calls for policy interventions to enable the sector to better ensure compliance in the future.

Legal Challenges and Opportunities in World Trade Organization Agreements: A Comparative Analysis of Member States

The World Trade Organization (WTO) agreements have a broad and complex impact on its member countries, especially regarding trade policy and global economic justice. Legal challenges in implementing these agreements, including harmonization between national and international law, as well as domestic political and economic dynamics, add to the complexity of their implementation. In addition, the WTO agreements also offer significant opportunities for member countries, such as wider market access and increased foreign investment. This study aims to analyze the long-term impact of the WTO agreements on trade policy, economic justice, and sustainable development in its member countries. This study uses a qualitative approach, with data obtained from various relevant sources such as research results and previous studies, which are then processed and analyzed in depth. The results show that the WTO agreements significantly shape the direction of member countries' future trade policies, with a greater impact felt by developing countries. Global economic injustice has emerged as one of the consequences of the implementation of these agreements, where developed countries are better able to utilize WTO provisions. On the other hand, the environmental and social impacts of implementing the WTO agreements are concerns that require better integration into trade policy. Projections of future challenges suggest that the WTO must continue to adapt to global changes to remain relevant and effective. Overall, this study highlights the need for a balance between trade liberalization and the protection of social and environmental values ​​within the WTO framework.

Maximizing Trade Benefits Through Strategic WTO Dispute Filings: A Quantitative Analysis of Optimal Initiation

The study investigates the asymmetrical distribution of bilateral dispute initiations at the World Trade Organization Dispute Settlement System (WTO-DSS) between specific country pairs. The study introduces a novel concept of dispute depth to examine how the asymmetrical bilateral dispute initiation affects bilateral trade among disputing dyads and to optimize the number of disputes that a country should file to maximize its trade benefit. By using the augmented Structural Gravity Model of trade and the PPMLHDFE estimator with extensive trade data for the years 1995–2022, across selected WTO member countries, the article demonstrates that an increase in the dispute depth decreases the bilateral trade between disputing dyads. Further, the study finds that the WTO member countries should strategically file no more than three disputes per year to maximize their trade gains. The study has important ramifications in the ambiguous world of WTO-DSS and paves the way for implementing the optimal number of disputes into trade dispute strategy, policy-making decisions and business environment of the constantly evolving international trade landscape.

Language Barriers Impact on Trade Disputes: Evidence from the WTO Trade Disputes Cases

This study examines the impact of language barriers on trade disputes using a panel data set of 129 countries and 565 trade dispute cases from the World Trade Organization (WTO) spanning the years 1995 to 2018. The language barrier index is employed as a metric to assess the extent of language barriers between trade nations, while the panel probit model is utilized for conducting the empirical analysis. The empirical evidence indicates that language barriers exert a substantial and favorable impact on trade disputes. Language obstacles in trading countries have been found to heighten the probability of trade disputes, indicating that language barriers contribute to increase trade costs and hamper bilateral trade relations. Moreover, the Armington model is employed to elucidate the theoretical aspects of the impact of language barriers on trade disputes, with trade costs serving as the mediating factor. The findings of the study also validated the notion that linguistic barriers contribute to an elevated likelihood of trade disputes. This research study presents empirical findings regarding the influence of linguistic barriers on trade disputes. Additional investigation can be undertaken to examine the impact of language competency on trade disputes, given the substantial role that language plays in the realm of international trade.

CPTPP Intellectual Property Rules and China's Response

In the complex and changeable international environment, due to the serious crisis of the multilateral trading system of the World Trade Organization and the influence of trade protectionism of Western countries, the United States and other developed countries try to promote trade facilitation through institutional changes and innovations in the field of intellectual property in order to seek more benefits. In order to avoid being marginalized in the reconstruction of international economic and trade rules and affecting trade exchanges between China and other countries, China formally submitted a written application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2021. The CPTPP, which came into effect in 2018, covers a wide range of content, comprehensive and high standards. So far, the issue of intellectual property is still one of the most important issues that some countries want to solve if they want to join the CPTPP. Although CPTPP shelve the 11 high-standard provisions in TPP, there is still a certain gap between China's intellectual property legal system and the CPTPP intellectual property rules at present. In order to successfully connect with the CPTPP intellectual property rules, it is necessary for China to conduct a comprehensive investigation of its intellectual property text and analyze the differences between it and the domestic intellectual property legal system. And put forward countermeasures.

Legal Analysis of the Applicability of International Cooperation in Addressing Climate Change in the International Trade Sector: Case of the WTO

Climate change has impacts on global society in different aspects, including those on the trade industry. Similarly, the trade industry contributes to global emissions of Greenhouse Gases through different technologies involved, and different rules adopted by the World Trade Organization (WTO) or related agreements. Such circulation of impacts implicates that neither climate change agreements nor the WTO can deal with climate change alone, but through international cooperation. Therefore, this study explores the status of international cooperation between the WTO and the Paris Agreement for addressing climate change in the trade industry. It also assesses different challenges faced by such cooperation, and proposes recommendations to addressing those challenges.

Rhetorical frames: a strategy of governmental power in international negotiations

Power comes not only as conventional Compulsory Power but also as Institutional, Structural, or Productive Power. We focus on under-explored Productive Power (the ability to produce and give meaning to social identities and capacities through discursive processes and practices) and the related strategy of rhetorical framing (using particular words or terms to characterise an issue and imply appropriate actions in line with that characterisation). Spotlighting the strategy’s dual offensive/defensive utility and relatively low resource requirements, we expect the strategy of rhetorical framing (and counter-framing) to be: (1) prevalent in inter-governmental negotiations, and (2) used even by conventionally ‘very weak’ states. Employing text analysis on over 5000 observations from the World Trade Organization’s (WTO) negotiation transcripts between 1995 and 2020, we confirm that states ‘weak’ in Compulsory Power are nevertheless wielding Productive Power and its related strategy of rhetorical framing. Whilst conventionally strong states emphasise a Reciprocation Frame (mutual concessions between states), conventionally weak states emphasise a Redistribution Frame (one-way concessions from some states to other states). Such findings make two important contributions: we exhibit the mechanics of an under-explored type of power and show what happens in international institutions when no single rhetorical frame dominates.

Developments in US Trade Policy Amid the Shifting Dynamics of World Trade

Today, world trade stands at a juncture. The proliferation of unconventional, unilateral trade policies calls into question the fundamental legitimacy of the World Trade Organization (WTO). To date, the global trading system evolved alongside a plethora of exogenous factors, such as the US-China competition. The political realities came to reveal the inadequacies of the existing trading regime to receive unique non-market economies (NMEs) like China in the world market. To better withstand the changes in world trade, the US resorted to unconventional, unilateral trade tactics. But how exactly did we get here? This study argues that the root cause can be found in the developments in US trade policy under each US presidency. The study’s findings demonstrate that the overarching goal of US trade policy has remained remarkably consistent across different presidencies in terms of countering the rise of China. Along the way, the incumbent president’s different priorities and political ideals, and the sustained impact of China’s accession to the WTO, induce profound changes in US-China relations and, at large, the world trading system. In short, this article aims to provide a policy-wise explanation to the current conundrum in world trade by following the developments in US trade policy since China’s accession to the WTO.

Subsidies in the Renewable Energy Industry Under the World Trade Organization Regime and Suggestions for Vietnam

Subsidies in the Renewable Energy Industry Under the World Trade Organization Regime and Suggestions for Vietnam

THE AGREEMENT ON TRADE-RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS (TRIPS)

he paper delves into the development and intricacies of international legal frameworks for intellectual property (IP) rights protection and commercialization, focusing on agreements like the Paris and Berne Conventions. It outlines the evolution from initial measures safeguarding industrial property to broader copyright and trademark protections, facilitated by entities such as the World Intellectual Property Organization (WIPO) and the World Trade Organization (WTO). The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is highlighted for establishing minimum standards for IP protection and enforcement, integrating provisions for dispute resolution, and managing the balance between IP holders' interests and the public good. TRIPS' role in addressing challenges posed by differing national norms and its efforts to mitigate IP rights abuse through limitations and exceptions, known as the Three-Step Test, are emphasized. This analysis underscores the importance of a fair and balanced IP system that promotes global innovation and creativity, acknowledging the need for a harmonious integration of varied national laws within the global trade and IP protection landscape.

The impact of trade liberalization on firms’ product and labor market power

Abstract This paper examines the impact of trade liberalization on firms’ product and labor market power. We estimate the prevalence and intensity of price-cost markups and either wage markups or wage markdowns, taking the dependence between these model-consistent measures of product and labor market power into account. Exploiting reductions in tariffs upon China’s World Trade Organization accession, we find that trade liberalization has not switched firms away from exercising product and labor market power. Reducing input tariffs has widened price-cost markups, narrowed wage markdowns, and widened wage markups at the firm level. We reveal heterogeneous trade liberalization effects on the intensity of firms’ product and labor market power.

The legal basis fot the application of patent waiver settlements in the covid-19 pandemic

Background: The research on the role of the World Trade Organization in solving the vaccine patent waiver problem related to the 2019 coronavirus disease pandemic will address each issue one by one. Seeing the waiver applications that were made from the end of 2020 to 2022, it is necessary to further study the legal basis and enforcement of patents. Coupled with its relation to public health and equality for the global world to achieve. This study aims to provide an understanding of the role of the WTO in the patent waiver application process and the continuity of current and future patent law enforcement. Method: This research is a normative research with a descriptive method that will explain with the aim of obtaining a description of the events of the patent waiver application. The data that has been obtained will be analysed qualitatively. Conclusions will be obtained from various descriptive data collected from primary and secondary sources that have been analysed. In this regard, this research will be descriptive-analytical in nature which will reveal existing regulations and their implementation. Findings: The results of this study are that the WTO has carried out its roles and functions in accordance with applicable international legal instruments. However, this research emphasises further on the principles of the WTO itself which emphasises justice for developing and less developed countries on the other words called Special and Differential Treatment of Developing Countries (SDT). Coupled with the existence of the Doha Declaration which should emphasise that public health should take precedence over intellectual property rights, including patents. Conclusion: Regarding the WTO's role in resolving vaccine patent issues during the COVID-19 pandemic, it can be concluded that the actions taken by the WTO, including its internal bodies and councils, adhere to applicable legal principles and the TRIPs Agreement. However, the decisions must fully align with the WTO's principles, particularly the Special and Differential Treatment of Developing Countries (SDT). Novelty/Originality of this study: This study analyzes the role of the WTO in resolving vaccine patent issues during the COVID-19 pandemic, focusing on the SDT principles and the Doha Declaration. It reveals the gap between international law and global health needs, offering a framework for balancing intellectual property rights with public health needs.

Analysis on the Modification of Article 5, Paragraph 2 of the WTO's SPS Agreement

Against the backdrop of the World Trade Organization's Agreement on Sanitary and Phytosanitary Measures (SPS Agreement), this study explores how health security measures affect international trade in the context of globalization, particularly in the context of global health crises such as COVID-19. Through an in-depth analysis of the provisions of the SPS Agreement and international trade data, as well as previous studies and case studies, the study made three key recommendations: enhancing transparency in risk assessment, promoting public participation in health policy-making, and facilitating the establishment of mechanisms for cross-border cooperation. These recommendations aim to ensure that member countries not only follow scientific principles when implementing sanitary and phytosanitary measures, but also reduce unnecessary barriers to trade and promote the sustainable development of global trade. The conclusions of the study highlight that these improvements can effectively alleviate the trade uncertainty that may be brought about by health security measures, thereby protecting public health and promoting the healthy growth of international trade.

Treaty interpretation, multilinguism, and the WTO dispute settlement system: towards the comparative translation paradigm?

Abstract Despite a growing emphasis on the interpretive methods employed by international courts and tribunals driven by their potential to address the issue of international law fragmentation, the multilingual aspect of interpretation, codified in Article 33 of the Vienna Convention on the Law of Treaties (VCLT), has received the least amount of attention from international lawyers. However, the multilingual complexity, rarely found in national legal systems, is precisely one of the reasons why scholars of legal interpretation are fascinated by international law. Based on a critical review of the VCLT approach to the interpretation of multilingual treaties, this work argues for an alternative approach, which we refer to as the ‘comparative translation’ paradigm. In addition to putting forward a normative case in favour of this alternative approach, we also aim to show how the World Trade Organization dispute settlement organs have started, at least to some extent, to embrace the new paradigm

The Role of the State as a Seller in International Trade Law View

Activities buy and selling between countries are carried out for countries that have an interest One each other to fulfill the needs will the well-being of its people. Already duly given clear settings will things that are allowed done and what not can be done to create its harmonious relationship between related countries. Trading international law trading binding internationally for countries in the world. Operate law trading internationally, especially countries as seller Lots lack in matter rules and their enforcement so that happen complicated problem For resolved. Study This use study normative. Legal study materials This is material primary, secondary, and tertiary law. Research results show that representatives of internal countries trading internationally as sellers is a State-Owned Enterprise Company that carries out sales to abroad get the profit used For the interests of the Indonesian state. Completion dispute trading there are two options, via arbitration or negotiations World Trade Organization (WTO). WTO selected if the country concerned in dispute is a WTO member. Arbitrage is chosen If a party-related dispute wants maximum confidentiality and a fast and easy process For holding the verdict.

Patent Invalidation Procedures in the WTO Member BRICS Countries: India Provides a Model Legislation

Eighty percent of the world’s population lives in emerging markets, and a significant portion of this population is not receiving healthcare or at least is not receiving the healthcare they need. This is an issue experienced in all of the BRICS countries as well. The BRICS countries particularly need drugs for the treatment and management of infectious and communicable diseases. The affordability of healthcare is one of the key priorities of the BRICS countries. These goals may not necessarily be in line with the patent laws of the BRICS countries which are also members of the World Trade Organization (WTO). This article examines the patent invalidation procedures of the four WTO member BRICS countries, namely India, China, Brazil, and South Africa with the aim of evaluating the strengths and weaknesses of their procedural safeguards and learning from their experiences. The presence of a functional patent opposition model is of utmost importance for the BRICS countries, since this allows for the invalidation or opposition of patents that have been granted in their respective jurisdictions. However, except for India, none of the other WTO member BRICS countries have developed a well-thought-out patent opposition model. This study argues that the BRICS group provides a viable forum for India to promote its distinguished patent invalidation model. In turn, the WTO member BRICS countries can learn from India’s pro-health patent opposition model and reform their national patent laws to align with their public health priorities. This is especially important in the context of the pandemic like COVID-19, for example.

Implementation of ISO 14001 Standard by World Trade Organization (WTO) Based on Technical Barriers to Trade (TBT) Agreement and Its Practices in Indonesia

Implementation of ISO 14001 Standard by World Trade Organization (WTO) Based on Technical Barriers to Trade (TBT) Agreement and Its Practices in Indonesia

Can informal judicial norms protect against political pressure?

International tribunals are pulled between a commitment to judicial autonomy and the need to manage their members’ political expectations, lest these rein in the tribunal’s power. We argue that when the formal design of international institutions leaves them exposed to political control, institutional actors can respond by self-imposing constraints to protect themselves from excessive oversight. We examine this phenomenon in the context of the World Trade Organization’s (WTO) Appellate Body (AB), touted until recently as one of the most successful international tribunals in existence. We argue that the early insistence on collegiality and consensus opinions among WTO AB members had the effect of (i) deflecting political blame and (ii) providing cover for adjudicators who did not dissent when governments might have wished them to. As the informal norm of consensus opinion was weakened, political control by WTO members grew stronger, culminating in the United States’s move to paralyze the AB. Weaker actors can thus improve their position under formal rules, yet this requires a strong commitment to a set of informal norms, which comes with its own challenges.