World Trade Organization Research Articles

Biofuel restrictions and indirect land‐use change: What does the WTO say?

Abstract The European Union (EU) discourages the use of environmentally unsustainable biofuels in the transport sector. On 26 April 2024, the World Trade Organization (WTO) adopted a panel decision in EU and Certain Member States – Palm Oil (Malaysia) regarding the legality of the EU's measures that gradually exclude palm oil‐based biofuels from its renewable energy targets by 2030. While the panel accepted the concept of origin‐neutral differentiated treatment of biofuels based on varying levels of indirect land‐use change (ILUC) risk, gaps in the EU's implementation led to violations of certain multilateral trade rules, disadvantaging palm oil‐based biofuels compared to rapeseed oil‐ and soybean oil‐based biofuels. Moreover, a French tax scheme incentivising fuel blending with sustainable biofuels was found to be discriminatory but not an illegal subsidy. As the first WTO ruling addressing national responses to biofuel‐induced global deforestation and associated GHG emissions, this landmark decision reaffirms that the right of States to regulate in the public interest must be exercised in a manner that respects their trade obligations. It also underscores the equal importance of both the design and implementation of trade regulations – even well‐intended climate‐related measures – in avoiding unjustified trade barriers.

Global food safety policies: Standards, challenges, and compliance

Food safety is a critical global public health priority that encompasses the proper management, preparation, and storage of food to prevent contamination and foodborne diseases (FBDs). To ensure food safety in the linked globe of today, international collaboration and robust regulatory systems are very vital. Examining significant standards, new issues, and strategies for ensuring compliance helps this study of international food safety rules to be comprehensive. Foodborne diseases impact about 600 million people annually, and primarily in underdeveloped areas over 420,000 people die from them. Among the major issues the paper highlights are new chemical contaminants (such as PFAS and microplastics), food fraud, antibiotic resistance, global warming, and disconnected regulatory systems. It also looks at the World Health Organisation, the Food and Agriculture Organisation, the Codex Alimentarius, the SPS Agreement of the World Trade Organisation, and ISO 22000 international frameworks and bodies guiding global projects to guarantee food safety. Effective surveillance systems, traceability technologies, and digital innovations are key methods for raising risk detection and compliance. Three of the Sustainable Development Goals (SDGs) this paper focused on health, hunger, and responsible consumption that relate to food safety. Among the recommendations are those for increasing global cooperation, funding laboratory and monitoring capability, harmonising regulations, and combining public health initiatives with food safety campaigns. Food safety determines public health, economic development, and sustainability; so, the outcomes reveal more than just a technical or legal challenge.

Economic Resilience under the Indo-Pacific Economic Framework Supply Chain Agreement: Treading between Geoeconomic Ambitions and World Trade Organization Compatibility?

Abstract The resilience of international supply chains is increasingly becoming a policy objective within international trade law making. Unilaterally, States have resorted to a myriad of trade tools to achieve this objective, including subsidizing domestic industries, facilitating critical minerals, and imposing tariffs on dominant supplying States to encourage supply diversification. In this context, the Indo-Pacific Economic Framework for Prosperity Supply Chain Agreement is the first major international trade agreement primarily aimed at achieving regional supply chain resilience. This Research Note explores the WTO compatibility of the economic interventions that underpin the Supply Chain Agreement’s ‘managed trade’ approach to supply chain resilience. First, it outlines the firm-centred governance approach that is central to supply chain management under the Supply Chain Agreement. Second, it explores the likely challenges and justifications of the envisaged interventions under GATT 1994 and Agreement on Safeguards. Finally, it reflects on the potential role of the WTO to shape cooperative supply chain governance interventions.

Trade Facilitation: An Analysis of the Divergences in the Legal Texts of the World Trade Organisation and the African Continental Free Trade Area

There has been debate on whether the legal texts on trade facilitation under the African Continental Free Trade Area (AfCFTA) are a duplicate of the World Trade Organisation’s (WTO) Trade Facilitation Agreement. This study compares the two sets of legal texts and finds that they are premised on different backgrounds. The WTO has a broader mandate on global trade and aims to ensure that trade among its members is conducted in conformity with agreed-upon rules. On the other hand, the AfCFTA has a trade agreement pursuant to the political vision of the African Union (AU) within the confines of article XXIV of GATT 1994. This article focuses on the divergences in the two sets of legal texts. While acknowledging that there are some similarities in themes and measures on trade facilitation, the study finds that the legal texts themselves are not duplicates and, in a number of cases, have different implications. This article, therefore, discusses some of the major differences between the legal texts on trade facilitation of the WTO and the AfCFTA.

Dampak Tarif Donald Trump Terhadap Perekonomian Indonesia

The protectionist tariff policy imposed by President Donald Trump, particularly the 32% tariff targeting developing countries, has placed significant pressure on Indonesia’s economic stability. This study aims to examine the comprehensive impact of the policy and evaluate the effectiveness of the Indonesian government’s responses. A mixed-method approach was employed, with a focus on descriptive and inferential quantitative analysis. Secondary data were collected from official institutions such as Statistics Indonesia (BPS), Bank Indonesia, the World Trade Organization (WTO), and the International Monetary Fund (IMF) for the period of 2015–2024. Key indicators analyzed include GDP, trade balance, exchange rate, inflation, and foreign direct investment (FDI). Data were processed using statistical software such as SPSS and EViews. The findings reveal that Indonesia’s steel exports to the United States experienced a short-term surge following the tariff announcement, but the increase was not sustained. Meanwhile, the domestic industry faced heightened pressure from an influx of low-cost imported steel. Government responses—mainly diplomatic and tactical—proved insufficient to address core structural issues, such as the low added value of exports and overdependence on limited markets. The study concludes that long-term structural reform is essential to strengthen Indonesia’s industrial competitiveness and economic resilience. While this research is limited to secondary data and does not include micro-level firm analysis, it offers valuable insight for policymakers, industry stakeholders, and researchers in developing strategies to manage future global trade disruptions.

A Legal Appraisal of the Contributions of WTO Towards Enhancing Trade in Developing Countries

This work is set out to make an appraisal of the contributions of World Trade Organization (WTO) towards enhancing trade in developing countries. Many developing countries have joined the WTO in order to protect themselves against the unfair market practices common in international trade. Developing countries represent the majority members of the institution and participate actively in the WTO trading system. The WTO has provided in its agreements, some Special and Differential (S&D) treatment to developing countries. It is rather a paradox that most of these provisions to a greater extent have not been effective towards enhancing trade in developing countries. The objective of this work is to examine the extent to which the WTO has contributed towards enhancing trade in developing-member countries. The method adopted in this research is doctrinal wherein, both primary and secondary sources of data were collected. The findings reveal among others that, the S&D treatment provisions accorded to developing countries who are vulnerable members of the institution have not been effectively implemented. The WTO lacks an efficient mechanism to ensure the effective implementation of its rules. It is therefore recommended that, the WTO should put in place an effective mechanism to ensure that developed member countries comply with the S&D treatment accorded to developing countries. The organization should equally provide more assistance (tariffs reduction) to developing countries to enable them achieve their economic growth and development. Developing countries on the other hand should establish transparent domestic trade policies necessary to implement the WTO rules.

Tariff Caps and US Agricultural Trade

ABSTRACTThe United States maintains relatively low tariffs on imports of agricultural products compared to global standards. As our analyses show, the Ad‐valorem tariff of the United States on agricultural imports is roughly 4%–5% compare to Japanese duty, for example, exceeding to 25%. World Trade Organisation (WTO) introduced the notion of tariff cap defined as the maximum limit of a tariff that can be imposed on any importing commodity. This paper presents a theoretical framework to analyse the impact of a tariff cap on agricultural trade including the theory of an optimal cap. Utilising a Tobit model on the 2021 WTO dataset at the Harmonised System (HS) six‐digit level, we find that the introduction of new tariff lines within the agricultural sector has had little or no effect on reducing binding overhang, as still a gap remains between bound and applied tariffs for the US. The average Ad‐valorem duty and the proportion of duty‐free commodities within a sector are shown to negatively influence the extent of binding overhang. Conversely, import volumes increase the likelihood of binding overhang, highlighting a positive relationship between trade volume and tariff flexibility. A tariff cap has a limited impact on the US's ability to adjust tariffs in agriculture, further liberalise agricultural trade, or collect revenue from primary agricultural products. Therefore, in practice, the cap on tariffs has a negligible effect on US imports but holds a significant promise for enhancing US export opportunities. From policy perspective, negotiations within the WTO aimed at reducing tariff caps could potentially boost the United States' prospect to gain from international agricultural trade.

Impact of Geopolitical and International Trade Dynamics on Corporate Vulnerability and Insolvency Risk: A Graph-Based Approach

In the context of the globalization process, the interplay between geopolitical dynamics and international trade fluctuations has had significant effects on global economic and business stability. Recent crises, such as the US–China trade war, the invasion of Ukraine, and the COVID-19 pandemic, have highlighted how changes in the structure of international trade can amplify the risks of business failure and reshape global competitiveness. This study aims to analyze in depth the transmission of business failure risk within the global trade network by assessing the sensitivity of industrial sectors in different countries to disruptive/critical/significant events. Through the integration of data from sources such as the World Trade Organization, national customs, and international relations research centers, a quantitative, exploratory, and descriptive approach based on graph theory, random forest, multivariate regression models, and neural networks is developed. This quantitative system makes it possible to identify patterns of risk propagation and to evaluate the degree of vulnerability of each country according to its commercial and financial structure. The mechanisms that relate geopolitical factors, such as trade sanctions and international conflicts, with the oscillations in the global market are analyzed. This study not only contributes to our understanding of how the macroeconomic environment influences business survival, but also provides analytical tools for strategic decision making. By providing an empirical and theoretical framework for early risk identification, it brings a novel perspective to academia and business, facilitating better adaptation to an increasingly volatile and uncertain business environment.

Is the WTO Passé? The Impact of Multilateral Economic Integration on Agri‐Food Global Value Chains

ABSTRACTThis paper assesses the impact of multilateral commitments under the General Agreement on Tariffs and Trade (GATT) and the World Trade Organisation (WTO) on agri‐food global value chains (GVCs). Against a backdrop of increasing regional trade agreements (RTAs) and questions about multilateralism's efficacy, we evaluate whether multilateral economic integration remains effective in advancing agri‐food GVCs. Relying on the isomorphic gravity framework, we find that GATT/WTO membership promotes agricultural GVC flows, increasing backward linkages by 56.7% and forward linkages by 43.9%, surpassing the effects of RTAs, which enhance backward and forward GVC linkages by only 7.9% and 4.1%, respectively. These results underscore the central role of multilateralism in driving agri‐food GVC integration despite its limitations in reducing agricultural tariffs. Meanwhile, RTAs significantly contribute to GVC integration by fostering connections between countries with substantial income disparities. The transition from GATT to WTO, marked by a more robust institutional framework and binding dispute resolution mechanisms, has further enhanced global agri‐food GVC integration. Our study highlights the continued relevance of multilateral economic integration in fostering agri‐food GVC integration, offering critical insights for policymakers in addressing worldwide trade and food security challenges.

Liminal phases and electronic waste: Interrogating temporality in international law

Abstract This article examines the regulatory tensions that emerge from the temporal organisation of jurisdiction in international law, through the lens of transnational flows of waste electronic and electrical equipment (WEEE). Transnational trade in WEEE is regulated by international environmental law, whereby the Basel Convention restricts transboundary trade in WEEE. However, the coexistence of this regime with international trade law, specifically World Trade Organization rules promoting free trade in electronic and electrical equipment (EEE) and used EEE (UEEE), has generated substantial complexity in controlling transboundary movements of WEEE. This article argues that the persistent issue of electronic waste being illegally shipped from developed to developing countries under the guise of being used equipment is closely linked to the temporal organisation of jurisdiction in international law. This article draws on legal harmonisation and the concept of liminality to interrogate temporality in international law.

Vietnam's International Economic Integration Policy Since Joining The World Trade Organization (WTO) Until Now

The contemporary world is undergoing great changes with many events taking place quickly, complicatedly, and unpredictably, giving both nations and peoples opportunities, opportunities, and hope for the future; poses both risks, challenges, and insecurity. All countries have adjusted their foreign policy, seeking to increasingly integrate with the region and the world for development purposes. In the cause of national development, Vietnam promotes globalization, and integrates deeply with the region and the world. Currently, the process of Vietnam's international economic integration is being actively implemented in the new context of the world with many changes. The article focuses on describing the contents of Vietnam's foreign policy and international integration of the economy, presenting the results achieved; At the same time, it raised the problems posed for Vietnam to continue to renew its foreign policy and economic integration in the coming time and gave some recommendations to promote the efficiency of the international economic integration of Vietnam.

Dinamika Penyelesaian Sengketa Dagang Komoditas Baja Indonesia Melalui Wto Terhadap Uni Eropa

This research explores Indonesia's role as a major player in the global steel and iron export market, particularly in relation to the European Union (EU). As the fifth largest exporter of steel and iron by 2022, Indonesia has seen its exports increase dramatically from US$5.60 billion in 2018 to US$27.82 billion in 2022. However, Indonesia faces significant trade barriers, including anti-dumping and safeguard duties imposed by the European Union. This article highlights the complexities of dealing with dumping allegations, with reference to Indonesia's experience with the World Trade Organization (WTO) and its diplomatic efforts in trade disputes with countries such as Australia and Pakistan. The WTO Dispute Settlement Body (DSB) plays an important role in resolving these conflicts, providing a framework for fair trade practices. In addition, the article also discusses the current challenges Indonesia faces regarding low-grade stainless steel products and emphasizes the need for effective government diplomacy. By engaging industry, society, and academia, the Indonesian government can improve its position in international trade. Through diplomacy and strategic collaboration, Indonesia aims to overcome trade barriers and promote its industrial interests globally.

Women and Political Leadership: The Case of Dr. Ngozi Okonjo-Iweala

Advocating for increasing women’s leadership is, on a larger scale, a way of ensuring gender equality and an attempt to arrive at balanced representation of women in formal and informal terrains of administration like their men counterparts. Political participation without gender discrimination is required for the development of a country and the global community at large. This study emphasizes how important women’s role in leadership is to the achievement of societal development and attaining Sustainable Development Goal 5, with Dr. Ngozi Okonjo-Iweala, the current Director-General of the World Trade Organization since March 2021, being the focus. There is increasing concern about an uneven women’s representation in political leadership positions. Women also suffer gender discrimination, physical and mental health problems, lack of or poor education, domestic violence and inhospitable work and family structures, caused by societal beliefs and cultures across different countries of the world. However, some women are still showing their vast interest in the leadership terrain. Despite all odds, they are still able to get into leadership roles and make great social impacts. This study takes a critical, logical and in-depth look at the leadership trend of Dr. Ngozi Okonjo-Iweala at the local and international communities, drawing inferences from her track record. Data were sourced from secondary means (publications, conference reports, newspapers, journals, published books, etc.). The paper concluded that increasing women’s political leadership should be encouraged to achieve gender equality.

The effects of R&D subsidies for joint R&D in a vertically related industry

In this study, we investigate the effects of research and development (R&D) subsidies for joint R&D in a vertically related industry with a three-country setting. The home government subsidises the home final-good firm for its joint R&D with the intermediate-good firm located in the rest of the world. Our results suggest that there may be room for revising the conditions for the countervailing measures in the Agreement on Subsidies and Countervailing Measures of the World Trade Organization. In one case, whereas the R&D subsidy hurts a foreign final-good firm, it improves both the home country’s and the world’s welfare.

Analysis of Agricultural Export Performance and Policy Prospects in India: A Two-Decade Review (2003–2023)

This study analyzes India's agricultural export performance and policy prospects over two decades (2003-2023), examining trends, comparative advantage shifts, and changes in agricultural commodity exports. Furthermore, the study discusses the potential for enhancing agricultural exports in the future. As a backbone of the Indian economy, agriculture supports more than 50% of the population and contributes significantly to economic growth. Data for this analysis were collected from various sources, including the Ministry of Commerce's export-import data bank and the World Trade Organization. Compositional changes in export data were analyzed using growth rates. These growth rates were calculated using a semi-log growth model and ordinary least squares (OLS) regression. The study findings indicate a decline in the global share of agricultural exports from India compared to leading exporting nations. Analyzing specific products, the export shares of cereals, spices, rice, maize, and meat & offals have increased, while wheat & meslin, coffee, tea, fish, vegetables & tubers, and fruits and nuts have experienced a decline in export shares from 2003 to 2013. Rice has maintained a consistent export share from 2014 to 2023, while other commodities have seen varying trends. However, examining the growth rates from 2003 to 2014, there has been significant positive growth in exports of maize, meat & offals, fruits & nuts, spices, cereals, rice, coffee, vegetables & tubers, fish, and tea, with notable variations among commodity groups. Conversely, wheat & meslin experienced negative growth. However, from 2014 to 2023, growth rates have declined for cereals, spices, rice, wheat & meslin, maize, coffee, tea, fish, vegetables & tubers, fruits and nuts, with meat & offals exhibiting a negative growth rate. Based on the findings, the study suggests that the government should promote exports across various sectors through targeted incentives, industry-friendly regulations, and a focus on competitiveness to capitalize on opportunities and drive growth in Indian agricultural exports.

Bridging Gaps in WTO Governance: A Case for the Consultative Steering Committee

The failure of Ministerial Conferences (MC13) to deliver meaningful results has reignited the debate about World Trade Organization (WTO) governance and how to increase the chances of achieving better outcomes in future. Although there are many reasons for the disappointing results at MC13, this article addresses the specific issue of a lacking WTO Steering or Executive Committee. The WTO is the only International Organization coming out of the Bretton Woods system that lacks such a set up. It is examined whether the informal Green Room that was abolished in 2014 could be brought back in some new form, in order to generate stronger informal engagement and opportunities for peer pressure between a representative sub-set of Members. While any change to the institutional set-up of an international organization presents significant challenges, the analysis suggests that it is at least conceptually possible to combine balanced participation with a cap on numbers to protect effectiveness.

Complexity of Disciplining Input Subsidies under the Countervailing Duty Law: A Focus on the US and the WTO

This article explores the structural complexities of addressing input subsidies under the counter vailing duty (CVD) system, with a particular focus on practices and legal developments in the US. Traditionally, input subsidies have been managed under the CVD system as ‘indirect’ subsidies. However, recent trends in the US reveal a shift towards addressing these subsidies within the anti-dumping (AD) framework; for example, by embracing them as a particular market situation (PMS). This article identifies why input subsidies in earlier production stages are not effectively addressed under the CVD law by examining the structural limitations of the US CVD law and the World Trade Organization (WTO) jurisprudence. Specifically, through a review of upstream subsidy cases in the US from January 2011 to July 2024, the article highlights the challenges and complexities involved in applying upstream subsidy provisions. The article concludes by emphasizing the need for clearer and more effective legal disciplines on input subsidies within the CVD framework to ensure comprehensive regulation of such practices.

Trade Commitments, Legitimate Regulation, and Extraterritoriality: Limits Beyond Non-discrimination?

p class="MsoNormal"The Appellate Body era of international trade law was marked by a major shift in the prevailing understanding of the permissibility of trade-restrictive measures that pursue legitimate objectives outside a state’s territory. The Appellate Body took a broad view of legal provisions, such as General Agreement on Tariffs and Trade (GATT) Article XX, that preserve World Trade Organization (WTO) Members’ regulatory autonomy, finding that these provisions also permit transnational regulatory action and regulation of production processes taking place abroad, provided that such regulation contributes to fulfilling a legitimate objective and is applied without unjustifiably discriminating against WTO Members. This article reconsiders this jurisprudence, questioning both whether there is a scope in WTO law itself for further limitations – related to territoriality and the non-coercion principle – and whether this reading of trade obligations is now under threat, especially in light of the backlash against the worldwide regulation of production standards through trade policy, in particular by the European Union (EU).o:p/o:p

Combating Deforestation Through International Trade: Do Smallholders Have a Place in the European Union’s Deforestation Regulation?

p class="MsoNormal"With the increasing recognition of the role of trade measures and policies in advancing environmental objectives, various countries are taking recourse to a wide range of environment-related trade measures. The European Union (‘EU’) is the frontrunner in adopting such measures and its ‘green’ measures are the subject of intense debate amongst the World Trade Organization (‘WTO’) membership due to their extraterritorial application and the potential to act as non-tariff barriers to trade. The focus of this paper is on the EU’s recent regulatory initiative aimed at addressing the problems associated with commodity-driven deforestation in global value chains, the Regulation on Deforestation-Free Products (‘EUDR’). The paper focuses on the compliance requirements under the EUDR and the implications for smallholders. Compliance requirements under the EUDR (e.g., traceability demands) are likely to put smallholders in a vulnerable position, particularly impacting the exports of developing economies in the Southeast Asian region, a region which is one of the top global exporters of commodities under the ambit of the EUDR In this context, the broad objective of this paper is to discuss the challenges posed by the EUDR for smallholders and provide recommendations for a more inclusive approach.o:p/o:p

World Trade Organization (WTO) Dispute Settlement Crisis (DSC): Legal Implications and Reform Proposals

World Trade Organization (WTO) Dispute Settlement Crisis (DSC): Legal Implications and Reform Proposals