World Trade Organization Research Articles

Assessment of the Current Situation and Solutions to Attract Australian FDI Capital to Vietnam in the Context of International Integration

Foreign Direct Investment (FDI) has played a pivotal role in Vietnam’s economic transformation, significantly contributing to industrialization, job creation, and export growth. Since the introduction of the Law on Foreign Investment in 1987 and Vietnam’s accession to the World Trade Organization (WTO) in 2007, the country has emerged as a leading destination for foreign investors in Southeast Asia. Key sectors attracting FDI include manufacturing, real estate, and services, which have driven economic development and facilitated Vietnam’s integration into the global economy. Despite these successes, challenges remain that hinder FDI’s full potential, including administrative inefficiencies, complex regulations, corruption, and inadequate infrastructure. The shortage of highly skilled labor, especially in technology-driven fields, also limits the country's ability to attract higher-value FDI projects. Moreover, there are regional disparities in FDI distribution, with major urban centers like Ho Chi Minh City and Hanoi receiving most investments, while rural areas are often overlooked. The impact of new-generation Free Trade Agreements (FTAs), such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), is also examined. These agreements enhance market access, legal protections for investors, and reduce trade barriers, making Vietnam increasingly attractive for high-tech and service industries. This paper assesses the current FDI landscape in Vietnam, identifying opportunities and challenges for foreign investors. Recommendations include simplifying business procedures, implementing anti-corruption measures, improving infrastructure, and enhancing workforce training to address skills gaps. By adopting these reforms, Vietnam can attract higher-quality investments, strengthen ties with global supply chains, and foster sustainable economic growth. Additionally, the research emphasizes the importance of building stronger partnerships between FDI enterprises and local firms to ensure the widespread distribution of investment benefits across the economy. With a more favorable investment climate, Vietnam can reinforce its position as a premier destination for global investors and enhance its role in the international market.

Legal Security of Parties in the Aspect of Dispute Settlement in the World Trade Organization

One of the basic elements of world order is properly functioning legal systems of individual states. The Sars-Covid pandemic and armed conflicts around the world, including those involving Europe, have strained the certainty of legal transactions in the countries of the UN system and the need to seek new supranational solutions, especially in the field of international trade. The pillar of security is therefore becoming instruments of international law, with the World Trade Organization in mind. A special tool of this organization are the dispute settlement mechanisms to which member states must adhere. In the conducted research, the thesis was put forward that one of the guarantors of the security of legal transactions is the resolution of disputes using the basic legal tools of this organization. It was proved that disputes between states themselves become solvable if they are transferred to the WTO.

Interview with Franz Perrez

Franz Perrez is Director-General of the Directorate of International Law at the Federal Department of Foreign Affairs (FDFA), Switzerland. He is responsible for the development and interpretation of international law and ensuring that Switzerland's strategic rights are respected abroad. As a member of the FDFA senior management, Mr Perrez is also jointly responsible for the FDFA's strategic approach and advises the Federal Council, Switzerland's representatives abroad and other Federal Administration offices on international law issues. Prior to his new role Mr Perrez was appointed Switzerland's Ambassador for the Environment and Head of the International Affairs Division at the Federal Office for the Environment (FOEN) in 2010. In this capacity, he headed the Swiss delegations to international environmental and climate negotiations for thirteen years. After studying law in Bern and Paris, Mr Perrez worked at the FDFA's Directorate of International Law from 1993 to 1995. He went on to study at New York University, where he gained a master of laws focusing on international law and completed a PhD thesis on the topic of sovereignty as a principle of cooperation. On returning to Switzerland, he took up a position at the World Trade Organization (WTO) Division of the State Secretariat for Economic Affairs, before joining the FOEN in 2001. Mr Perrez has proven expertise in international law. He has widely published in the area of international environmental law, international environmental governance, the relationship between trade and the environment, and public international law. Since 2008, Mr Perrez has also lectured on international environmental law at the University of Bern School of Law. He served as a panellist on the newest WTO tuna–dolphin dispute between Mexico and the United States, and as Switzerland's Ambassador for the Environment and Chief Negotiator for Environmental Issues, namely climate change, biodiversity, chemicals and waste, he led the Swiss delegation to the Rio+20 conference and to the Paris Climate Change Conference in 2015. He was President of the Basel Convention (COP 11 in 2013) and President of the Rotterdam Convention (COP 8 in 2017) and facilitated the negotiations on mitigation of the Paris Agreement. Through his work within and outside of Switzerland, he has built strong networks around the world and within the Federal Administration.

World Trade Organization (WTO) Disputes

World Trade Organization (WTO) Disputes

Formation of the international legal framework in ensuring economic security: the contribution of international organisations

Introduction: The article offers a concise overview of international organisations as collaborative partnerships among states with defined objectives while also analysing the underlying motivations for their establishment.Objective: This article explores the roles and distinctive characteristics of major global institutions, including the United Nations (UN), European Union (EU), Council of Europe (CoE), Organization for Security and Cooperation in Europe (OSCE), North Atlantic Treaty Organization (NATO), and World Trade Organization (WTO).Methods: The study employs diverse investigative methodologies, including thorough literature reviews and statistical analyses, to examine core concepts such as "legal order", "international legal order", "international security", and "global security".Results: It takes a historical perspective to trace the evolution of international organisations and utilises generalisation and diagnostic techniques to offer practical recommendations and reach conclusions. The article differentiates between "international security?" and "global security", underscoring the latter’s broader scope. Furthermore, it underscores the pivotal role of the United Nations (UN) in safeguarding global peace, fostering amicable ties among nations, advancing international collaboration, and acting as a forum for coordinating various national endeavours.Conclusions: International organisations, spearheaded by the United Nations (UN), are pivotal in upholding the international legal framework and safeguarding global security in the face of ever-evolving challenges and threats

Intellectual Property Rights in Saudi Arabia and Their Compatibility with the World Trade Organization

This paper aims to review Saudi Arabia’s IPR system and analyze to what extent it complies with the WTO/TRIPS. The research looks into the history and the present legal system of IPR in Saudi Arabia. It also identifies the enforcement systems, and issues concerning compliance with international standards. With a comparative analysis method, the research assesses Saudi Arabia in comparison with the WTO guidelines and its neighboring countries regarding improving IPR protection. This research identifies progress in legislative and institutional development and gaps in enforcement efficiency and digital IP protection. The paper discusses measures to improve Saudi Arabia’s IPR system to support innovation-based development and increase WTO compliance.

Evaluation and control strategy analysis of influenza cases in Jiujiang City, Jiangxi Province, China from 2018 to 2022.

According to World Trade Organization (WTO) statistics, the incidence of seasonal influenza in China has been on the rise since 2018. The aim of this study was to identify and investigate the influence of factors related to the incidence of four common types of influenza viruses. Data of patients with common cold and associated virus infections are described, and a logistic regression model based on gender, age and season was established. The relationship between virus type and the above three factors was analyzed in depth and significant (p<0.05) associations noted. We noted a fluctuation trend, with the infection rate of influenza virus showing an upward trend from 2018 to 2019 and from 2021 to 2022 and a downward trend from 2019 to 2021. The total number of cases in adolescents aged 18-30 years was higher than that in the elderly. The impact of different types of influenza virus on the population ranked from large to small, with special roles played by Influenza B/Victoria, H3N2, Influenza A/H1N1 pdm and Influenza B/Yamagata.

Governance and policy implications of the Inflation Reduction Act: A European perspective

AbstractThis paper examines the US 2022 Inflation Reduction Act (IRA) alongside the EU's Net‐Zero Industry Act (NZIA) and Critical Raw Materials Act (CRMA) of 2023. We analyze their differential approaches to accelerating investment in clean technology, enhancing energy security and fortifying supply chains. Both regions share the objective of diminishing reliance on Chinese dominance in clean industries. The US seeks to stimulate private investment primarily via uncapped tax credits from 2022 to 2031, some of them subject to stringent domestic content requirements. The EU has reacted to the potential violation of World Trade Organization's rules and a possible green investment shift to the US In doing so, the EU is relying heavily on a regulatory strategy, with emphasis on the simplification of procedures. However, the EU's public funding model is vague and leaves details to the discretion of member states, risking fragmentation within the single market. Through the application of a dynamic computable general equilibrium model, we show that a 50% increase in demand for the IRA's uncapped tax credits could nearly triple US GDP outcomes by 2027. We highlight the contrast between the IRA's immediate fiscal incentives and the NZIA's regulatory approach, emphasising that the former are more attractive for firms.

Normas ambientales voluntarias, acciones de mitigación nacionalmente apropiadas y Pacto Verde

The increased voluntary environmental standards in coffee production have been a relevant issue, especially in sustainability and global value chain behavior. Likewise, measures such as Nationally Appropriate Mitigation Actions (NAMA) and the European Union's Green Deal influence this sector. Through a literature review, this article analyzes the interrelations between voluntary standards, NAMA, and the potential to comply with Green Deal requirements, as well as the impact on the productive sector. Standards can contribute to sustainable development goals and emissions reduction, but they are not the ultimate solution to improve the conditions of primary producers. From a market access perspective, productive organizations that have applied sustainability standards and countries with NAMA strategies for the coffee sector are better prepared to comply with the Green Deal. However, the need for public policies to support the sectors, the generation of adequate financing mechanisms, and prospective studies to improve the positioning in the value chains continue to be necessary elements of action that must be strengthened in the short and medium term. Finally, there is still pending conciliation within the World Trade Organization on how these measures will be incorporated into its operating structure.

The value of international standards certification: Evidence on export and firm performance from a security enforcement on borders

Globally, economic growth is promoted through regional economic integration, and governments actively try to improve the security and efficiency of international trade and border management by optimizing the conditions for international trade. The World Trade Organization (WTO) introduced the Authorized Economic Operator (AEO) certification system to improve the efficiency of customs clearance and to ensure the security of the global supply chain. Using a sample of Taiwanese-listed firms that attained AEO certification from 2009 to 2018, this study investigates the influence of AEO certification on their export sales and corporate performance. The empirical results show that AEO-certified firms increase their ratio of export sales and the scope of export destination regions. However, AEO-certified firms can not improve their operating and market performance significantly, except for low-performance firms in the accreditation year. This study also uses the two-stage least square regressions (2SLS) method and the propensity score matching method to conduct the regression analysis. The regression results are consistent with the main findings. The findings can be used for reference by firms seeking to expand international trade and by governments to promote the country’s international trading.

Breaking the Anti-Globalization Deadlock: How E-Commerce Negotiations Drive the Reshaping of WTO Multilateral Cooperation

Amid rising anti-globalization sentiment, the global trading system faces increasing fragmentation and weakened multilateral cooperation. The World Trade Organization (WTO)’s e-commerce negotiations offer a crucial pathway to address these challenges by establishing digital trade rules and fostering market integration and inclusive development. This paper examines key breakthroughs in the e-commerce negotiations, including progress in data flow governance, tariff policies, and the regulation of emerging technologies, highlighting their role in reshaping multilateral cooperation. Drawing on regional agreements and international collaboration, the study proposes strategies for harmonizing data governance, implementing flexible tariff mechanisms, and improving dispute settlement systems. The findings demonstrate that e-commerce negotiations are a vital tool for the WTO to reform the multilateral cooperation framework, tackle pressing global challenges, and promote re-globalization.

Oil market responses to Sino–European political relation shock: Insights after China's world trade organization accession

We investigate how changes in political relations between Europe and China affect the oil market. When political relations improve, we find a significant increase in oil demand and prices, accompanied by a decrease in market uncertainty. However, the effects on oil supply and inventory are minimal. Additionally, we compute the forecast error variance decomposition and construct the counterfactual evolution of oil variables in the absence of the impacts of political relation shocks. We find that shifts in Sino–European political relations contribute more significantly to variations in oil market uncertainty than to other oil variables. Finally, we augment the vector autoregression model by incorporating the Sino–US political relationship index. Our findings reveal that this augmentation significantly changes the impacts.

Assessing the Impact of Foreign Direct Investment on Vietnam's Socioeconomic Development and Proposing Policy Recommendations

In recent years, Vietnam has emerged as one of the world's top 20 destinations for foreign direct investment (FDI). Since reforming its Foreign Investment Law in 1987 and joining the World Trade Organization (WTO) in 2007, the country has implemented numerous tax and investment procedure reforms. This influx of FDI has significantly boosted Vietnam's economic growth, job creation, and social welfare. However, challenges persist—complex legal procedures and weak links between FDI and domestic businesses have been ongoing issues for four decades. Moreover, new global economic trends such as the global minimum tax, sustainable development, digital transformation, and the shift towards a circular economy demand timely and appropriate government reforms. These reforms are crucial for developing suitable foreign investment policies and effective FDI attraction strategies. This article aims to examine Vietnam's current FDI landscape, assess its socio-economic impact in recent years, and propose recommendations for a more selective and effective FDI strategy moving forward.

Reevaluating the Most Favored-Nation Treatment: Addressing Challenges in Modern Trade

As global trade continues to evolve, the foundational principles that govern international commerce are increasingly scrutinized. The Most Favored-Nation (MFN) principle, a cornerstone of the World Trade Organization (WTO), was designed to foster fairness by mandating equal trade concessions for all members, thereby ensuring non-discriminatory trading behaviors. This research paper focused on the challenges of the Most Favored-Nation (MFN) principle within the World Trade Organization (WTO), a clause that mandates equal trade concessions for all members, ensuring non-discrimination. The research question investigates whether the MFN principle effectively promotes fairness in international trade or if it unintentionally exacerbates economic inequalities, particularly for developing countries. Findings reveal that MFN clauses often reduce market competition and lead to higher prices, while also disadvantaging developing countries that struggle to compete with developed nations. The paper underscores the need for MFN principle reform, such as advocating for differential pricing strategies for enhancing economic competition, setting exceptions for the poorest countries to implement tailored trade policies, and empowering these nations to challenge unfair practices by richer countries. These reforms aim to create a fairer and more balanced global trade system that supports inclusive economic growth for the whole world.

Risk Assessment of Trade Barriers: The Implications of Indonesia's Halal Certification Law on International Commerce

Introduction: The importance of halal standards in international commerce has increased as the volume of cross-border trade has increased. This article investigates the ramifications of Indonesia's Halal Product Guarantee Law on global trade, specifically focusing on its arrangement with World Trade Organization rules, explicitly the Specialized Technical Barriers to Trade Agreement. Even though the Halal Product Guarantee Law requires halal certification, it could be seen as a trade barrier because it could impose too many regulations and encourage discrimination against imported goods. Objective: This study discusses the implications for international trade of the Halal Product Guarantee Law's potential violations of the Technical Barriers to Trade Agreement and emphasizes the necessity of globally consistent and uniform halal certification standards. Method: This study analyzes the Halal Product Guarantee Law about important World Trade Organization principles like National Treatment and Most Favored Nation using a descriptive qualitative research methodology and drawing from previous literature reviews. Result: According to the findings, the Halal Product Guarantee Law may violate World Trade Organization regulations, which would have a significant impact on international trade and raise questions regarding the uniformity, adaptability, and consistency of halal certification. Implication: The article emphasizes the significance of evaluating the Halal Product Guarantee Law's compliance with World Trade Organization agreements to support the expansion of the halal market, respect religious beliefs, and ensure fair and balanced international commerce.

International negotiations over the global commons

AbstractCountries today navigate a multipolar world defined by tensions between great powers. How do middle powers, small states, and Global South countries fare in this geopolitical landscape? Can they shape new international agreements on emerging, divisive topics, like trade-and-environment issues? To explore this question, I investigate the twenty years of negotiations that led to a new treaty seeking to preserve the global commons: the World Trade Organization’s (WTO) Agreement on Fisheries Subsidies (AFS). Using text-as-data analyses and a rich trove of WTO documents, I investigate the sources of the treaty text. I find that middle powers, small states, and countries from the Global South contributed to the agreement; they did so by forming coalitions with like-minded countries. The findings demonstrate that a wider range of states can effectively participate in international negotiations than traditionally assumed.

The WTO as Multilateral Diffusion Hub: Institutional Learning in WTO Disputes and the Design of Preferential Trade Agreements

Abstract Institutions are not created in a vacuum—but how do extant institutions influence design choices? Leveraging fragmentation in the global trade order, this paper stresses the relevance of experience and argues that the institutional influence of the World Trade Organization (WTO) extends beyond its jurisdiction through its centrality as multilateral diffusion hub: When states negotiate preferential trade agreements (PTAs), previous dispute settlement experiences in the WTO shape the design of dispute settlement mechanisms (DSMs). National bureaucracies undergo institutional learning processes when participating in multilateral trade disputes and subsequently conclude PTAs with DSMs that are similar to the institutions of the WTO, thus fostering their—decentralized—spread to the network of PTAs. The learning effect is particularly pronounced for states with low bureaucratic capacity. Employing a novel, unitary conceptualization of DSMs in terms of complainant rights shows that the results of this diffusion process generally entail increased levels of complainant rights in PTAs. Importantly, institutional learning is more than mere emulation: States also adapt institutional design to individual context by considering the prior dispute experience of their trading partners. A dual empirical strategy and interviews with PTA negotiators corroborate the learning effect and its relevance during PTA negotiations.

The automatic termination clause in the Fisheries Subsidies Agreement—brinkmanship for future negotiation or a time bomb for self-destruction?

Abstract The Fisheries Subsidies Agreement (FSA) is an important stride forward, but its future is uncertain because of the embedded automatic termination clause. There is a substantial possibility that this provision comes into effect. It would be prudent to focus on how best to utilize the FSA before that scenario materializes. Most notably, international law jurisprudence and World Trade Organization precedents posit that panels can continue to review disputes and issue decisions even after the FSA is terminated as long as the disputes are brought to them before termination. The automatic termination clause is a unique, unprecedented feature, which may kill the hard-earned momentum of the fisheries subsidies regulation. If managed well, however, the potential damage can be controlled and the new agreement can be utilized for the ultimate success of global fisheries subsidies regulation.

The motto diplomacy respects ho chi Minh's peace and the application of Vietnam's foreign policy

Ho Chi Minh's thought on foreign affairs, methods, style and art of diplomacy is a part of Ho Chi Minh's thought in general on Vietnam's revolutionary line. In the past time, Vietnam has strongly implemented diplomatic work according to Ho Chi Minh's diplomatic thought and achieved great successes: Vietnam's foreign relations expanded and Vietnam's position in the international arena. One of the success factors of Vietnam's diplomacy in recent years is that Vietnam has returned to Ho Chi Minh's diplomatic thought. With the promotion of participation in ASEAN, ASEM, APEC... and especially becoming a member of the World Trade Organization, Vietnam has been integrating wider and deeper into the world and the region. Many new problems arise for Vietnamese land and for Vietnamese diplomacy, both in terms of opportunities and challenges. That situation requires Vietnam to continue to study more deeply about Ho Chi Minh's foreign policy, methods, style and art, find new explanations and especially the application of Ho Chi Minh's thought.

Time to Consensus in International Negotiations

Contemporary international relations, anchored in the principles of multipolarity, frequently employ consensus-based decision-making, which prioritizes respect for all negotiating parties and ensures that the views of all participants are considered equally. While consensus remains a core mechanism for many international organizations, such as the World Trade Organization (WTO), it has increasingly come under criticism for its inefficiency and substantial time requirements. This highlights the importance of examining the factors that influence the time needed to reach consensus. Utilizing formal mathematical modeling based on a modified DeGroot model, this article explores how variables such as the size of the negotiating group, the level of authoritativeness, dominance dynamics within the group, and coalition formation affect the time required to achieve consensus. The findings indicate that an increase in group size, on its own, results in only a minor increase in the time needed to reach consensus, becoming a significant factor only when paired with high levels of authoritativeness among the participants. Conversely, the presence of a highly authoritative member within a negotiating group significantly prolongs decision-making time, even in smaller groups, and the formation of coalitions (e.g., due to multiple highly authoritative members) can make reaching consensus impossible. The "consensus minus k" rule, intended to break deadlocks, is found to be ineffective for international organizations with numerous participants and divergent interests. In hierarchical structures, consensus is typically achieved through preliminary negotiations within subgroups, which further prolongs the consensusbuilding process.