World Trade Organization Research Articles

A chance for countries to support Ireland's world‐leading cancer warning labels for alcohol containers

AbstractIreland has regulated for all packaged alcohol products to include a health warning that states that ‘there is a link between alcohol and fatal cancers’. This warning is being opposed in the World Trade Organization by 12 member states who are raising that the warning is an unnecessary barrier to trade. The World Health Organization is supporting Ireland. Countries should not oppose Ireland's warning which is defensible from legal and public health perspectives.

The impacts of Timor-Leste’s membership in the WTO:

The paper presents information about the significant impacts of Timor-Leste's membership in the World Trade Organization (WTO) on institutional reforms, trade policy challenges, and the prospects for ASEAN membership. The paper explores the comprehensive institutional reforms required by WTO membership, emphasizing the harmonization of over 300 economic legislations with WTO standards. The paper also acknowledges that Timor-Leste encounters challenges, including opportunities for strengthening the capacity of human resource and further development of a comprehensive trade policy framework. Additionally, trade negotiations with ten WTO member states on market access for goods and services, including the Information Technology Agreement (ITA), were carefully considered as part of Timor-Leste's WTO commitments, with the expectation of smooth implementation upon the country's membership of the WTO. The study also discusses the use of tariff protectionism as a strategy to safeguard sensitive domestic industries in Timor-Leste, while remaining in compliance with WTO rules in the future.

Home remedies: flexibilities to onshore pharmaceutical manufacturing under WTO rules

Abstract In the wake of the Coronavirus Disease 2019 pandemic, governments globally have intensified efforts to localize the production of pharmaceuticals, leveraging local content requirements and incentives to mitigate supply chain vulnerabilities. This shift has revealed tensions with World Trade Organization (WTO) regulations, notably highlighted in Turkey—Pharmaceutical Products (EU). This article explores policy-based flexibilities within the General Agreement on Tariffs and Trade (GATT) 1994, the Agreement on Trade-Related Investment Measures, and the Subsidies and Countervailing Measures (SCM) Agreement that may justify measures inconsistent with WTO norms under specific conditions. Analysing public health exceptions, national security imperatives, and government procurement policies, the paper elucidates how these flexibilities can be mobilized to support onshoring initiatives while adhering to international trade obligations. The findings suggest a nuanced approach to reconciling public health goals and economic strategies with global trade rules, providing a critical framework for policymakers navigating the complex interplay between national interests and international legal commitments.

Advancing Global Pharmacoequity in Oncology.

Limited availability and affordability of cancer drugs contribute to staggering disparities in cancer survival between high-income and low- and middle-income countries (LMICs). As infrastructure for cancer care rapidly develops, there is an urgent need to reduce prices and improve access to cancer medicines in LMICs to advance pharmacoequity globally. Prior strategies to expand access to cancer medicines in LMICs have primarily relied on charity or differential pricing and have yielded limited results. Policymakers at the World Health Assembly recently proposed several strategies to increase global access to cancer drugs. Reviewing empirical data and lessons learned from medication access programs for HIV, COVID-19, and other infectious diseases, 3 strategies that multilateral organizations can use to reduce prices of cancer drugs in LMICs are discussed herein. These include (1) building regional technology transfer and manufacturing hubs, (2) expanding and streamlining use of compulsory licenses, and (3) implementing global standards for drug price transparency. Counterpoints to the critiques of these policies are critiqued and how programs can use these strategies to build on existing disease-centered initiatives is discussed. Lessons learned from the global response to HIV and COVID-19 show that international collaboration and support from the World Health and Trade Organizations can ensure a unified, coordinated agenda for advancing access to care in LMICs. Building on these lessons and implementing similar approaches for cancer drugs can play a critical role in expanding accessibility and affordability of cancer medicines in LMICs. With a growing burden of cancer morbidity and mortality in LMICs, redoubled efforts to deliver essential cancer medications to LMICs would have an immense impact on global cancer control and achieving the United Nations Sustainable Development Goals.

Impact of the Belt and Road Initiative on Global Trade and Economic Growth Amid China’s Slowing Growth

Since the inception of the Belt and Road Initiative (BRI), China’s trade relations with participating nations have experienced substantial growth. This study utilises data from the World Trade Organization (WTO) covering the years 2003 to 2021 to explore the dynamics of China’s foreign trade and assess the impact of the BRI on trade interactions with China. One of the central objectives of our research is to determine whether participation in the BRI has significantly contributed to trade growth with China, thereby strengthening economic ties and fostering bilateral cooperation. Another important objective is to analyse the changes in the BRI’s role in driving global economic growth amid China’s slowing growth. Through empirical analysis using data from over 180 countries, we evaluate the heterogeneous effects of the BRI across different continents. Our findings indicate that the BRI has had the most pronounced trade-stimulating impact on the continents of America, Europe and Africa, while trade volumes with Asian countries have seen only marginal increases. The relatively smaller trade growth in Asian countries can be attributed to the already high volume of trade activities due to their geographical proximity to China, which diminishes the marginal impact of the BRI. Additionally, the significant infrastructure investments under the BRI have been predominantly directed towards Africa and Europe, further explaining the smaller trade-enhancing effects observed in Asia compared to other continents. Furthermore, we identified the spillover effects of the BRI on non-participating countries. Moreover, significant differences in the BRI’s impact on global economic growth were observed before and after China’s economic slowdown. This article offers actionable policy recommendations to inform future decisions based on these findings.

The Current Situation, Issues, and Improvement Measures of Foreign Direct Investment in China's Agricultural Economy

With the rapid development of economic globalization, the connections between countries have become increasingly close, and foreign direct investment has gradually become an important factor influencing the agricultural economic development of various countries. In order to achieve their own economic development, countries have actively sought to attract foreign investment. With China’s accession to the World Trade Organization and its active participation in global governance, attracting and utilizing foreign investment for domestic agriculture has become a strategic consensus for economic development amid intense global economic competition. This paper analyzes the history and current situation of foreign direct investment in Chinese agriculture, identifies the main issues faced by Chinese agriculture in utilizing foreign direct investment, and proposes corresponding solutions, including improving the foreign direct investment environment in Chinese agriculture and optimizing the structure of foreign direct investment sources.

Global Trade Tensions: Analyzing the WTO Legality of the U.S. Inflation Reduction Act and Strategic Responses

With the profound changes in the global economic landscape and the increasing proximity of the United States and China in terms of power contrasts, the hegemonic anxiety of the U.S. has been increasing, leading to the adoption of a series of protection measures in the field of trade. Among them, the Inflation Reduction Act, as an important part of the U.S. trade protectionist policy, its implementation has not only aggravated the tension in international trade, but also violated the relevant rules of the World Trade Organization (WTO). This paper elaborates the specific content of the Act and its impact on international trade, especially its large-scale subsidy policy in the field of green energy and its potential impact on the global supply chain. Subsequently, this paper analyzes in depth the illegality of the Act under the WTO framework from the perspective of prohibited subsidies and non-discriminatory principles, and argues with specific cases. Finally, this paper puts forward China's response strategy, aiming to provide theoretical support and practical guidance for China in dealing with U.S. trade protectionist policies. The purpose of this paper is to reveal the nature and impact of the U.S. trade protectionism policy, to provide theoretical support for China to safeguard its legitimate rights and interests in global trade, and to provide useful reflections and insights for China to promote trade liberalization and facilitation, strengthen international cooperation, and jointly respond to challenges in the context of global economic integration.

Multi-mode trade policy retaliation

AbstractPrevious studies have found evidence that countries may choose to retaliate against countries for certain trade actions. What has not been empirically examined is the use of multi-modal retaliation in trade policy. Using an exporter-importer-sector panel of antidumping (AD), sanitary and phytosanitary (SPS), and technical barriers to trade (TBT) actions between 1995 and 2019, we find evidence of cross-modal retaliation: importers are statistically more likely to initiate an AD petition against an exporter if they have an ongoing SPS-related concern against that exporter. The World Trade Organization’s dispute settlement body (DSB) was initially seen as promoting the stability of the global trading system by limiting such unilateral retaliation, widespread throughout the 1980s. We find statistical evidence suggesting that countries may be increasingly engaging in unilateral actions, particularly through SPS and TBT, in response to trade policy disputes as confidence in the WTO DSB falls. Our findings suggest that countries may expect more unilateral retaliatory action through SPS and TBT if recent efforts to reform the WTO DSB fail.

Innovative policy of WTO on trade in the global financial services market

The World Trade Organization (WTO) has been actively working to address the various challenges facing the global financial services market and is of great importance for the regulation of trade in general, including trade in financial services. This is done through the WTO’s guidance in the conclusion of trade agreements containing provisions on financial services, such as the General Agreement on Trade in Services (GATS). The main goal of the GATS is to create conditions for legalizing and regulating trade in financial services between member countries. It promotes the creation of a legal framework for trade in services, including financial services, and establishes principlesand procedures to be followed by market participants. In addition, the WTO facilitates the exchange of information and best practices between countries to promote innovative development of the financial sector (FSC), Trade Facilitation Agreement (TFA), and stimulates competition, which can foster innovation. However, specific policies on innovation in the financial sector are usually determined by national governments and regulators, and the WTO helps to create a general framework for their development. However, it should be noted that ongoing efforts are needed to address the remaining challenges and to promote a more efficient and accessible global financial services market. The article examines the key features of the regulatory framework for modern financial instruments in individual countries, as well as the mechanisms of WTO regulation of the global financial services market.

Intergovernmental organizations and entrepreneurship: understanding the relationship between the supranational, national, and individual level

AbstractIntergovernmental organizations (IGOs), such as the World Trade Organization, the United Nations Trade and Development and the World Bank, promote stability, security and development for member states and their citizens via supranational institutional influences. However, their influence on individuals, especially their entrepreneurial business activities, is unclear. As policymakers decide when more (or less) IGO involvement best serves their countries and citizens, we must better understand the connection of the supranational, national, and individual levels. Thus, we study how IGO membership influences entrepreneurial opportunities and focus on two activities that impact a country’s economy differently: formal and informal entrepreneurship. Moreover, we identify how national institutional ecologies build the bridge between the supranational and the individual level and mediate the relationships. Using a sample of 68 countries, their entrepreneurial environment, and their connection to IGOs, we find that IGO memberships enhance opportunities for entrepreneurship. Moreover, IGOs promote formal entrepreneurial activities while discouraging informal entrepreneurial activities, mediated by the country’s institutional ecology. We combine insights from international relations, institutional theory, and strategic entrepreneurship to highlight how institutions at different levels influence entrepreneurial opportunities and discuss the policy implications of our findings.

International and national regulatory system of the intangible assets market

As part of the study, it was determined that increasing the competitiveness of business structures due to the intellectualization of their trade and economic activities led to a significant increase in the volume of the world market of intangible assets. The growth of the world market of intangible assets is accompanied by an increase in the vulnerability of its objects from the point of view of possible violations of their rights. We have identified the following reasons as the basis for violations regarding intangible assets: the legal field regulating trade relations in the field of transactions with intangible assets is created by the national legislation of different countries, which may differ significantly; growing trade in counterfeit goods and piracy. It is shown that the main purpose of creating the Agreement on Trade Aspects of Intellectual Property Rights within the framework of the World Trade Organization was the elimination of disagreements regarding the trade aspects of intellectual property rights in the legislative systems of individual countries; the importance of this Agreement in the context of the further development of the world market of intellectual property objects consists in the creation of principles and standards regarding the existence, scope and use of intellectual property rights, as well as in the development of effective means of compliance with these rights. It was found that the further development of the market of intellectual property objects requires an increase in the effectiveness of legal support and the need to create new approaches to solving, first of all, legal and organizational problems of the regulation of intellectual property rights at the regional and national levels in connection with the expansion of opportunities for the use of objects of intellectual property rights in new high-tech areas, including in the conditions of global networks, as well as in connection with the emergence of new objects of intellectual property. It was concluded that the effectiveness of the system of protection of intangible assets is directly related to the existing legal framework, and the directions for further improvement of the legislative support for the protection of intangible assets in the field of international business should be considered as follows: definition of mechanisms for the protection of intangible assets in the field of information technology, first of all, improvement of normative and legal framework in the field of protection of intellectual property rights on the Internet; development of provisions on the protection of commercial secret rights and sanctions for appropriating the authorship of someone else’s intellectual property; development of a more sophisticated counteraction to the movement through the customs territory of the country of goods that violate intellectual property rights; creation of normative and legal regulation of issues related to the need to carry out valuation of the value of intangible assets.

Article: The Contribution of the Canadian-European Partnership to the Integration of Sustainable Development Issues into the Multilateral Trading System

In their influential roles within the World Trade Organization (WTO), Canada and the European Union (EU) demonstrate a strong commitment to sustainable development and multilateralism, navigating challenges and opportunities. Plurilateral negotiations, particularly the Joint Statement Initiatives (JSI), underscore their dedication to addressing issues like services regulation and fostering inclusive trade. The institutional framework of their Comprehensive Economic and Trade Agreement (CETA) provides a structured mechanism, with specialized committees like the one on Trade and Sustainable Development, to ensure transparency, regulatory cooperation, and trade promotion aligned with sustainable development goals. However, challenges persist in achieving consensus on binding commitments. The temptation of unilateralism, exemplified by the EU’s carbon border adjustment mechanism (CBAM), raises concerns about its compatibility with WTO principles and the potential prioritization of sustainability over economic development. Despite these challenges, Canada and the EU continue to champion sustainable development in various international forums, emphasizing the importance of the WTO as the primary platform for reconciling trade and sustainability. The forthcoming thirteenth WTO Ministerial Conference in 2024 presents a crucial opportunity for these leaders to demonstrate a significant commitment to a balanced approach between economic development and sustainability in international trade.

Article: Exploring Shortcomings in International Trade Law in Light of the Expansion of Artificial Intelligence

The objective of this paper is to explore the shortcomings in international trade law (ITL) in view of the expansion of Artificial Intelligence (AI), and to propose some recommendations. AI is contributing to the development of international trade while giving rise to other concerns, such as nontariffs measures. Addressing the legal challenges posed by the integration of AI into various facets of society, including international trade, is of major importance. In this context, this paper explores a number of provisions of the General Agreement on Tariffs and Trade (GATT) 1994, those of the General Agreement on Trade in Services (GATS), and ends with those of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Finally, the article proposes some recommendations to better take into account the concerns that AI may give rise to in the multilateral trading system. It highlights the need for close partnership between the World Trade Organization (WTO), the International Standardization Organization (ISO) and the International Electrotechnical Commission (IEC) to better maximize the benefits of AI while minimizing the risks in the context of international trade. Also, it highlights the importance of harmonizing regulations on the trade of AI products and AI-driven trading and the need for a change in legal design that goes beyond mere incremental adjustments.

RESOLVING TRADE DISPUTES IN A GLOBALIZED WORLD: THE EFFICACY AND CHALLENGES OF THE WTO DISPUTE SETTLEMENT MECHANISM

The World Trade Organization (WTO) stands at the heart of global trade governance, providing a framework for the liberalization and regulation of international trade. Central to its mandate is the Dispute Settlement Mechanism (DSM), which ensures that trade rules are respected and disputes are resolved in a structured, legal manner. This mechanism, often described as the "crown jewel" of the WTO, underpins the organization's credibility and facilitates a rules-based trading system. Yet, as international trade becomes increasingly complex, the WTO DSM faces significant challenges, necessitating a comprehensive reevaluation of its operations, relevance, and adaptability.

IMPORTANCE OF WTO AS DISPUTE RESOLUTION MECHANISM: SUCCESSES AND CHALLENGES

In this thesis, the role of the World Trade Organization in international trade, its importance in the peaceful settlement of disputes between countries, its difficulties and successes are analyzed.

The quest for leadership in multilateral institutions: Great power rivalries and middle powers in the WTO

ABSTRACT This article investigates the great power rivalry of the US and China at the World Trade Organization (WTO) through the lens of cooptation dynamics. First, it argues that the accession of China to the WTO is a case of top-down cooptation meant to tame opposition to the US-led international order and to restrain China from security competition. Second, it explains why this cooptation deal was not durable and led to feedback effects that fueled the US’ loss of interest in maintaining a powerful WTO. Third, it shows how the WTO crisis triggers a current bottom-up effort by middle powers to re-stabilize the WTO through the mechanism of Joint Statement Initiatives, which attempt to re-commit the US to leadership. The article shows that the US’ undermining of the WTO and the institutional reaction it evokes in other members are part of a reactive sequence dynamic driven by failed cooptation bargains.

How negative institutional power moderates contestation: Explaining dissatisfied powers’ strategies towards international institutions

AbstractInternational institutions are increasingly under attack from their member states, who embark on varying and sometimes escalating modes of contestation. At the same time, states’ negative institutional power, i.e. their opportunities to avoid undesired outcomes in international institutions, has been declining for some time. This paper claims that dissatisfied states’ negative institutional power endowments are key to understanding their varying contestation modes: the more limited (extensive) the negative institutional power of dissatisfied states in an institution, the more radical (moderate) modes of institutional contestation they will choose. We argue that, all else equal, states’ (1) inside options to prevent undesired outcomes within the institution and (2) their outside options to evade undesired outcomes by leaving the institution jointly condition whether they choose a strategy of voice, subversion, exit, or rollback to contest the dissatisfying institution. We assess the plausibility of our Negative Institutional Power Theory (NIPT) by means of four detailed case studies of the Trump Administration’s contestation of the World Bank, the World Trade Organization, the Paris Agreement, and the Iran Nuclear Deal. We demonstrate the generalizability of our arguments by assessing our claims across eight additional instances of other dissatisfied powers’ contesting different international institutions. The twelve case studies demonstrate that negative power matters for states’ choice of institutional contestation modes. Our findings suggest that whether, in the future, international institutions will be increasingly challenged from within and outside, can be influenced by reforms that grant (or deny) states negative institutional power.

The Impact of the WTO Agricultural Agreement on Developing Countries

Abstract: Agricultural insurance, as an agricultural risk management tool to disperse agricultural risks, compensate farmers' losses and safeguard agricultural production, has become an indispensable part of the agricultural security system in various countries. However, due to the high cost of agricultural insurance, many countries provide financial subsidies for agricultural insurance. This paper introduces the help of agricultural insurance subsidies to countries in World Trade Organization (WTO), summarizes the main features and inadequacies of relevant WTO rules, and analyzes the existing problems of agricultural insurance subsidies from four aspects based on the practice of American agricultural insurance subsidies. The main conclusions of this paper include: first, the rules of agricultural insurance subsidy are limited and the classification is not clear, which seriously harms the agricultural development of developing countries; second, income insurance and natural disaster insurance in premium subsidies are regarded as "green box" tools, which need to meet certain conditions, otherwise there is still the possibility of being regarded as "amber box" tools; third, the current WTO rules on agricultural insurance subsidies are more conducive to the development of developed countries, but the agricultural insurance subsidies in developing countries lag behind and are difficult to implement, and the rules on agricultural insurance subsidies urgently need to be improved. Fourth, the double standards of developed countries and developing countries have caused differences in the classification of agricultural insurance subsidies. Finally, the thesis puts forward some suggestions on the compliance development of China's agricultural insurance subsidies under the framework of WTO rules.

The Impact of Globalization on World Nations: A Study on Protection, Welfare, and Producer Gain

This paper examines the effects of globalization on nations, focusing on economic, social, and cultural dimensions. It analyzes the roles of protectionism and globalization in shaping consumer welfare and producer earnings through qualitative methods and the Customs Union theory framework. The study discusses the benefits and drawbacks of globalization in the context of World Trade Organization (WTO) regulations. The findings indicate that globalization has intensified financial flows between countries, which can exacerbate economic crises. Countries with abundant human resources can capitalize on the international division of labor to specialize in high-value sectors, while those with limited resources risk falling behind in the digital landscape. This division of labor fosters specialization and improves production efficiency through targeted education. However, multinational corporations often impede cost-effective production in developing nations, underscoring the necessity to restructure research and development to facilitate technology adoption in underdeveloped areas. This restructuring can help close the technological gap and encourage equitable participation in the global economy. Jel code Classification: D6: Welfare economics, Fo1 Global outlook, F40: General F4: Macroeconomics aspects of international trade and finance

The Analysis of World Trade Organization Panel Decision of Indonesia Measures Relating to Raw Materials

European Union has requested a panel regarding Indonesia's restriction of exports and downstreaming of raw materials. According to the European Union, Indonesia's export and downstream policies violate World Trade Organization (WTO) provisions, namely Article XI:1 of the General Agreement on Tariffs and Trade (GATT) 1994. In the panel report, the World Trade Organization Dispute Settlement Body (WTO DSB) decided that Indonesia had been proven to have violated these WTO provisions. This thesis examines whether the WTO's ruling on Indonesia's restrictions on raw materials is justified and explores Indonesia's arguments in Appellate Body with the European Union regarding restrictions on nickel ore exports and downstreaming. The research methodology involves normative legal research, analyzing primary legal sources like legislation and secondary sources such as textbooks and case studies. The study delves into Indonesia's challenges in defending its policies at the WTO's Appellate Body. The primary research object is Indonesia's Measures relating to Raw Materials, particularly nickel ore, and relevant agreements like GATT 1994. Legal materials include Indonesian regulations on exports and GATT 1994, while secondary sources encompass statutory regulations, scientific journals, and related literature. The data collection method relies on library research. Using a qualitative approach, the thesis seeks a deep understanding of the core issues. Analytical methods include statutory interpretation, case studies, and grounded theory. The research finds Indonesia's measures non-compliant with GATT 1994 but suggests leveraging Article XXI, the Security Exception, as a strategic defense in the Appellate Body.