World Trade Research Articles

Tunable resource allocation dynamics for interpreting economic complexity

A lot of effort has been devoted to network structural interpretations of the economic complexity which can affect the level of economic growth and the activities of economic entities, although it remains unknown how network dynamical interpretations on which the economic complexity index operates affects its performance. Here, we regard export trade flows as the dynamics of resource allocation, and design a tunable resource allocation (TRA) process for interpreting economic complexity. The TRA could degrade into the classical economic complexity index (ECI) when the tunable parameter equals zero. We apply the TRA dynamics to the perfectly nested triangular matrix and the real country-product bipartite network from the world trade data to interpret economic complexity respectively. The parametric interpretations provide conceptual descriptions of the economic complexity index, shedding new light on a pattern of specialization of resource allocation, and the fluctuation of the economic complexity in countries and products. Moreover, the relationship of economic complexity between countries and products in the framework of TRA reveals that higher-ECI countries usually specialize in higher-ECI products while products not so as to countries, and the correlation strength varies with tunable parameters.

Experimentation at the WTO lab: towards a better ‘Interface’ to accommodate State-owned enterprises

Abstract This article advocates for a more inclusive and adaptable interface mechanism at the World Trade Organization (WTO), specifically tailored to address the nuanced dynamics of State-Owned Enterprises (SOEs). It revisits the foundational ‘Interface Theory’ by John H. Jackson, a cornerstone in shaping initial WTO rules for non-market economies. Drawing upon the critiques of David Kennedy, this article identifies three key limitations inherent in the existing interface theory. It then delves into a critical examination of the regulations pertaining to SOEs within the frameworks of the Trans-Pacific Partnership / the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, arguing that these models inadequately address the complexity of state participation in the economy, with a particular focus on non-market economies like China. This article suggests leveraging the WTO as a global policy laboratory, a forum for the exploration and discussion of varied national strategies concerning SOE management. It posits China’s mixed-ownership reform as an exemplary starting point for such experimental endeavours.

A Brief Analysis of the Influence of Foreign Culture on the Development of Thai Culture

Thailand is a member and founding member of the Association of Southeast Asian Nations, as well as a member of the Asia-Pacific Economic Cooperation, the Asia-Europe Meeting and the World Trade Organization. As one of the ancient countries in Southeast Asia with a history of more than 700 years, the development of its culture runs through the development of Thailand from ancient times to the present, and has a far-reaching impact on the development of Thai society that cannot be ignored. As for the development process of Thai culture, especially the formation and roots of culture, it is inevitable to involve the penetration and influence of foreign culture, and the so-called foreign culture can be divided into Eastern culture and Western culture. Western culture is generally synonymous with European and American culture; Oriental culture is more representative of traditional Chinese culture and ancient Indian culture. Geographically, Thailand is located in Southeast Asia, that is, in the middle of China and India. At the same time, from the perspective of cultural regional distribution, Thai culture is also located between the two eastern cultural regions of Chinese culture and Indian culture. To sum up, the influence of foreign cultures on the development of Thai culture cannot be underestimated or ignored. That's what we're talking about today: the influence of foreign cultures on the development of Thai culture.

U.S. Economic Policy Towards China under the Biden Administration

Since the inception of the open-door policy in 1978, China has progressively become more integrated into the global economy through trade, foreign direct investment, and, more recently, outward direct investment. This economic integration has gained momentum with initiatives like the ‘Go Global’ strategy, China’s entry into the World Trade Organization (WTO) in 2001, and the launch of the Belt and Road Initiative in 2013. China’s economic ascent, coupled with its increasing political influence and military power, prompted the United States (US) to initiate a strategy of rebalancing in the Asia Pacific region, starting with the Bush administration and continuing through the Obama, Trump, and Biden administrations. During the Trump administration, this rebalancing strategy was supported by decoupling strategy, ultimately leading to a trade war with China. Despite its intention to avoid the initiation of a new Cold War and to adopt a more moderate stance towards China, the US-China trade war has evolved further into a tech war under the Biden administration. Given this context, this article aims to outline the primary characteristics of the US economic policy towards China during the Biden administration, comparing it to the Trump administration and assessing its impact on both nations. The central argument of this article is that the primary characteristics of the US economic policy towards China under Biden administration are rebalancing and decoupling, carried over from the policies of the preceding Trump administration, and there are clear signs that these characteristics are deepening. Furthermore, the article demonstrates that the extensive decoupling measures enacted by the US have proven effective in diminishing China’s role in global industrial and supply chains, particularly in industries related to semiconductors and chipmaking equipment.

International Standards for Regulatory Deference Relating to National Food Control Systems: More to Do?

AbstractThis paper describes how the development of texts on regulatory deference by the Codex Alimentarius Commission (CAC) addresses relevant recommendations of the World Trade Organization (WTO) and supports Member countries of CAC in their negotiation and implementation of equivalence agreements. We consider the role and function of CAC within a rules-based multilateral framework, particularly in relation to the development and implementation of equivalence concepts. We then consider whether, through use of equivalence agreements, trade facilitation outcomes have been realised. Our hypothesis is that international standards on regulatory deference promote fair but aspirational standards and support fair practices in the trade of safe food – both vital outcomes for global food security and the achievement of many of the United Nations Sustainable Development Goals. We test this hypothesis against the framework provided by decisions of the WTO Sanitary and Phytosanitary Committee. We argue that the equivalence concepts and guidelines developed by CAC are appropriate but underutilised tools available for Member countries to strike a balance between their right to regulate to protect human, animal or plant life and health and to fulfil legitimate objectives whilst meeting their WTO obligations to avoid measures that constitute unnecessary barriers to trade.

State subsidies and aircraft financing in the EU, USA, and China: a balancing act

Abstract In the past, the discourse on State subsidies involving commercial aircraft was dominated by allegations of the support granted to aircraft manufacturers Airbus and Boeing, and the respective disputes brought before the Dispute Settlement Body of the World Trade Organization (WTO). While the focus has until now been narrowly confined to Airbus and Boeing and, thus, the European Union (EU) and the USA and the competition between the two, new large commercial aircraft manufacturers have entered the market—notably, those based in China, Russia, and Japan. This article examines the semi-recent ‘truce’ between Airbus and Boeing and what has followed—namely, the introduction of State investment mechanisms and strategies in the EU, USA, and China for commercial airlines seeking to ‘green’ their aircraft fleets. Against the backdrop of airlines purchasing aircraft and operating services on a global market, this article exposes the lack of harmonization in approach to State subsidies globally and questions the extent to which the State and the market—and, indeed, States or groups of States—perform a balancing act in aircraft financing, an area fraught with complex political and commercial realities.

Peculiarities of administrative and legal regulation of cement production and circulation in Ukraine

The paper provides a thorough analysis of the administrative and legal regulation of cement production and circulation in Ukraine, based on the current needs of the modern economy and the challenges of globalization. The author examines in detail the legal framework of the industry, focusing on the analysis of key legislative acts, regulations and international agreements that form the legal framework for the cement industry in Ukraine. Particular attention is paid to the impact of Ukraine’s membership in the World Trade Organization on the formation of foreign economic policy, as well as the opportunities and limitations arising from this for the cement industry. The current state of the industry is analyzed, the main challenges and barriers affecting its functioning and development are identified. The author analyzes the role of the state in creating conditions for effective regulation of the industry, stimulating innovative development, and implementing environmental standards aimed at reducing the negative impact on the environment and ensuring sustainable development. An important part of the study is a review of state regulation tools that can be used to protect the domestic market, stimulate investment and innovation, and adapt the industry to the changing conditions of the global economy. The authors offer specific recommendations for improving administrative and legal regulation, with a particular emphasis on the need to harmonize national legislation with international requirements and standards. The paper emphasizes that solving the existing problems and utilizing the potential of the cement industry is possible only through a comprehensive approach that includes legislative, economic and technological aspects. The recommendations proposed in the paper reflect the need for a comprehensive approach to reforming the industry and creating conditions for its sustainable and competitive development at the national and international levels. The paper highlights the need for a comprehensive approach to reforming the industry, including both legislative initiatives and practical measures to support and develop the cement industry in Ukraine.

Steel, security and the WTO Dispute Settlement Mechanism: A trade catastrophe in the making

AbstractThe World Trade Organization's (WTO's) Dispute Settlement Mechanism has been rendered ineffective by the refusal of the United States to allow appointments to its Appellate Body. The implicit reason for this poor state of affairs is the desire of the United States to protect its steel sector under the WTO's national security exception. The arguments made by the United States in this regard are mostly spurious and reflect its status as a current bad faith actor within the WTO. The posture of the United States is undermining both the effectiveness and legitimacy of this important trade institution. This article examines both the events leading up to this situation, the commercial interests behind them, and their legitimacy under WTO law.

Intellectual property rights and limitations on farmers’ rights in Pakistan

Farmers are the life blood of agriculture. The role of farmers for the services done to agro diversity and their efforts to seed preservation, sufficiently justify their rights to seed. In the wake of World Trade Organization- Trade Related Aspects of Intellectual Property (WTO-TRIPS) agreement on Intellectual Property Rights (IPR) protection for all innovations including plants. Farmers’ traditional rights are compromised over breeders of new plant varieties. This paper aims to describe international plant protection systems under WTO-TRIPS and examines two international conventions on plant protection i.e., Seed treaty and Convention on Biological Diversity. This paper employs a doctrinal method to examine the rights of farmers in Pakistan by adoption of “Plant Breeders’ Rights Act”. It is revealed that the Act limits the traditional rights of farmers’ and have helped to gratify plant breeders; Pakistan despite signatory to seed treaty has ignored to protect rights of farming communities while, in compliance to WTO-TRIPS went on to a stricter model of IPR barring farmer’s right even to seed except saving and exchanging’. The study proposes some strategies to balance between the rights of farmers with that of breeders, thus, to achieve a better reform system for both growers’ and agro technologists.

Health policy competencies in regional organizations: a retrospective analysis for 76 regional organizations from 1945 to 2015

BackgroundHealth policy competencies of regional organizations include mandates to create regional health laws and policies, as well as authorities that allow member states to undertake collective actions in the health field. The examination of the health policy competencies of regional organizations is essential, as it constitutes an important prerequisite for regional organizations to govern regional health. This study aims to map the development trajectory of health policy competencies in regional organizations worldwide and investigate their potential correlates. This will contribute to the enhanced promotion of both existing and new regional health cooperation.MethodsThis retrospective analysis utilized the health policy competencies of the 76 regional organizations worldwide from 1945 to 2015, as investigated in the Regional Organizations Competencies Database. By aggregating member state data from various sources such as the IHME Global Burden of Disease 2019, the World Bank, and the World Trade Organization, we extracted the mean values and coefficients of variation for the covariates in regional organization characteristics, socioeconomic and demographic factors, health status and health-system capacity. The correlation between changes in the health policy scope of regional organizations and independent variables was analyzed using Poisson pseudo-likelihood regression with multiple levels of fixed effects.ResultsFrom 1945 to 2015, the number of regional organizations with health policy competencies experienced a slow growth stage before 1991 and an explosive growth stage post-1991. By 2015, 48 out of the 71 existing regional organizations had developed their health policy competencies, yet 26 (54.2%) of these organizations possessed only 1–2 health policy competencies. An enhancement in the health policy scope of a regional organization correlated with its founding year, a greater number of policy fields, higher under-five mortality, and larger disparities in trade and healthcare access and quality indexes among member states. In contrast, larger disparities in population, under-five mortality and health worker density among member states, along with more hospital beds per capita, were negatively correlated with the expansion of a regional organization’s health policy scope.ConclusionSince 1991, there has been a surge of interest in health among regional organizations, although health remains a secondary priority for them. The health policy competencies of regional organizations are pivotal for promoting social equity within regional communities. Its establishment is also closely linked to the level and disparities among member states in aspects such as trade, population, child mortality rates, and health system capacity.

Targeted Liberalization: China's foreign investment regulation reform and its post‐WTO‐accession export surge

AbstractTo gain membership in the World Trade Organization (WTO) in 2001, China substantially modified its regulation of foreign direct investment. These reforms coincided with rapid changes in the composition of capital inflows, as the dominant entry mode shifted from joint venture to wholly foreign owned affiliate. Foreign‐invested enterprises contributed a rising share of China's rapidly growing exports. We investigate how much China's foreign ownership liberalization contributed to these observed trends in foreign investment flows and Chinese exports. Accounting for both the set of activities from which it removed foreign equity caps and those into which it newly encouraged investment, we estimate the impact of China's reforms on firm entry and exports using a difference‐in‐differences estimator. To eliminate bias resulting from heterogeneous and dynamic treatment effects, we also apply novel dynamic difference‐in‐differences estimators. We find that removal of foreign equity caps induced entry of wholly foreign owned firms, while having no significant effect on entry of new joint ventures. Concurrently, the designation of new activities for investment incentives induced foreign entry, particularly in the form of joint ventures. Reduced‐form calculations imply that FDI policy changes explain almost 9% of the increase in exports from foreign‐invested firms over the decade studied. The effect was larger in sectors identified as “high‐tech industries” by the Chinese government, as they contribute most of the estimated policy‐driven export growth from foreign‐invested firms. Thus, China's FDI regulation reform following WTO entry was targeted liberalization: elimination of equity share limits induced new foreign entry, while investment incentives encouraged formation of joint ventures.

Consistency Testing in WTO Law and the Special Case of Moral Regulation

Abstract There is a debate in World Trade Organization (WTO) law about whether the right to regulate for public interest purposes is conditioned on a requirement to do so consistently. While the early Appellate Body (AB) jurisprudence eschewed consistency testing under the formal legal test, it refrained from explicitly rejecting the practice. Subsequent AB rulings have seemingly adopted a narrow type of consistency testing through the doctrine of ‘legitimate regulatory distinctions’. A case could also be made that WTO tribunals sometimes embrace consistency testing under Article XX of the General Agreement on Tariffs and Trade, although this is not explicitly acknowledged or universally recognized. In Seals, Canada explicitly attacked the European Union’s (EU) seal products ban for its lack of consistency with the EU’s broader animal welfare settings. This dispute provided an opportunity – indeed, an obligation – for the AB to establish a clear doctrine on consistency testing. This article argues that the AB shirked its duty through reasoning techniques that avoided meaningful engagement with the substance of Canada’s argument. The AB did not truly reject consistency testing, but its precise views are hard to glean due to reasoning that is opaque, confused and even contradictory. This article argues that there is a compelling case for consistency testing, at least in certain ‘public morals’ disputes, and that the AB should provide clearer guidance.

Exploring The Impact of Green Accounting and Corporate Social Responsibility Disclosure on Firm Value Through Profitability In Mining Companies In Indonesia

This study is dedicated to examining how the implementation of green accounting and the disclosure of corporate social responsibility impact the value of mining companies in Indonesia through profitability. Green accounting is a relatively novel area of research in Indonesia, particularly in the context of the mining sector. Given the ongoing governmental reforms in the mining industry, with the prohibition of raw material exports under Law Number 3 of 2020 amending Law Number 4 of 2009 on Mineral and Coal Mining, the study finds it intriguing to explore the implications of green accounting. The ban on nickel ore exports, as stipulated by the aforementioned legal amendments, sparked strong opposition from the European Union, leading to Indonesia being taken to the World Trade Organisation (WTO) in early 2021. This policy aligns with the broader objective of downstreaming, which seeks to secure a domestic supply of raw materials for mineral processing and refining, thereby mitigating adverse environmental effects. To initiate the research, the first step involves gathering data on pertinent variables from the financial statements of mining companies listed on the Indonesian Stock Exchange (IDX). Subsequently, SPSS will be employed to conduct tests and assess the influence of green accounting and corporate social responsibility disclosure on firm value, with profitability acting as a mediating factor.

Border carbon adjustment compliance and the WTO: the interactional evolution of law

Abstract International law and its understanding can evolve outside of treaties, but little is known about the elements that can explain these changes. This paper looks at the debate on border carbon adjustment (BCA) compatibility with the World Trade Organization (WTO) and argues that international law depends on the actors’ perceptions, which can change over time. It applies an interactional international law framework to explain how a policy that was once deemed incompatible with WTO rules is now considered ‘WTO-compliant’ by the European Union. A discourse network analysis is conducted based on debates from the WTO and the literature over 24 years. Results show that since 2012, the legal literature has increasingly been more confident that BCA could be WTO-compatible, despite the absence of significant changes in WTO case law during the same period. This increase in support was sustained by an expanded practice of legality and a perceived lack of legality of applicable WTO rules. This research offers new insights into the dynamics of international law. It provides new methodological avenues for scholars seeking to trace the evolution of law and legal understanding through formal and informal processes.

Identifying Emerging Issues in the Seafood Industry Based on a Text Mining Approach

Identification of emerging issues has garnered growing interest as a way to establish proactive policy formulation. However, in fisheries research, analyzing such issues has largely depended on the literature or researchers’ judgment. We use keyword analysis, targeting news application programming interfaces (News APIs) (72,981 news sources and blogs), to investigate issues in the global seafood industry from January 2019 to March 2022. Among a variety of topics identified by year and country, in general, seafood market function, health, and tariffs were the main issues in 2019, while COVID-19-related issues were primarily mentioned between 2020 and 2021. After 2022, the role of the market regained attention, and various new issues rose to the surface. To identify emerging issues, we jointly employ dynamic time warping (DTW) and growth models, which derive several keywords, including coercion, cuisines, food safety, ketones, plastic ingestions, seafood alcohol, urbanization, wastewater treatment, and the World Trade Organization (WTO). High interest in food safety, environmental change, trade conflict, and seafood value improvement reveal the need for proper policy responses.

The Legal Dimension of the Formation and Function of the Hellenic Supremes Councils for Marine Accidents

Shipping is perhaps the largest industry globally, transporting more than 90% of the world's trade efficiently and safely. Ships, given their activity on a global scale, are subject to different legal regimes. However, marine accidents with adverse consequences for the environment and people still occur. Hellas, as a country with a strong maritime tradition and with one of the largest shipping companies in the world since the 70s, has established a special legislative framework for the investigation of marine accidents with the Act Decree (A.D.) 712/1970 (A΄ 237). This special legislative process will be critically examined in this brief study.

Anne Saab, Review of Matias E. Margulis, Shadow Negotiators: How UN Organizations Shape the Rules of World Trade for Food Security

Anne Saab, Review of Matias E. Margulis, Shadow Negotiators: How UN Organizations Shape the Rules of World Trade for Food Security

Global Commerce in Transition: Recent Legal Shifts in International Trade Law

This study offers a comprehensive analysis of the evolving landscape of International Trade Law in response to dynamic global forces. Tracing the historical foundations through mercantilism to the contemporary era, the research explores key developments such as the creation of the World Trade Organization, the rise of digitalization, and the integration of environmental and social considerations. Recent legal shifts are examined in terms of the broadening scope, enhanced structure, and augmented complexity of International Trade Law. The study highlights the transformative impact of the COVID-19 pandemic and provides valuable insights for businesses, policymakers, and researchers navigating the complexities of an interconnected and dynamic global economy. As International Trade Law adapts to emerging challenges, the study underscores its pivotal role in fostering fairness, justice, and global economic cooperation.

China's Economic Evolution: From WTO Accession to Global Leadership

This study provides a comprehensive exploration of the transformative journey of China's economic policies and global engagement from its accession to the World Trade Organization (WTO) in 2001 to the present day. The analysis spans three distinct phases: the initial shift from a centrally planned to a market-oriented system, the full integration into the global economic system marked by meticulous adherence to WTO commitments, and the subsequent era characterized by the Belt and Road Initiative and high-quality development strategies. Examining key milestones such as the establishment of free trade zones, internationalization of the yuan, and participation in significant agreements like the Regional Comprehensive Economic Partnership (RCEP) and the China-EU Comprehensive Agreement on Investment (CECAI), the study highlights China's pivotal role in shaping global economic structures. The findings underscore China's commitment to opening-up, fostering international cooperation, and contributing significantly to reshaping the global economic landscape.

Inflammatory markers in world trade center workers with asthma: Associations with post traumatic stress disorder.

Post-traumatic stress disorders (PTSD) is associated with worse asthma outcomes in individuals exposed to the World Trade Center (WTC) site. Do WTC workers with coexisting PTSD and asthma have a specific inflammatory pattern that underlies the relationship with increased asthma morbidity? We collected data on a cohort of WTC workers with asthma recruited from the WTC Health Program. Diagnosis of PTSD was ascertained with a Structured Clinical Interview for DSM-5 (Diagnostic and Statistical Manuel of Mental Disorders) and the severity of PTSD symptoms was assessed with the PTSD Checklist 5. We obtained blood and sputum samples to measure cytokines levels in study participants. Of the 232 WTC workers with diagnosis of asthma in the study, 75 (32%) had PTSD. PTSD was significantly associated with worse asthma control (p = 0.002) and increased resource utilization (p = 0.0002). There was no significant association (p>0.05) between most blood or sputum cytokines with PTSD diagnosis or PCL-5 scores both in unadjusted and adjusted analyses. Our results suggest that PTSD is not associated with blood and sputum inflammatory markers in WTC workers with asthma. These findings suggest that other mechanisms likely explain the association between PTSD and asthma control in WTC exposed individuals.