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7 - WTO Dispute Settlement: “Will of the Strongest” or “Rule of Law”? Attempting to View Recent U.S. Actions through the Proper Lens

from Part I - Current Challenges in International Trade Dispute Settlement

Published online by Cambridge University Press:  07 August 2021

Manfred Elsig
Affiliation:
Universität Bern, Switzerland
Rodrigo Polanco
Affiliation:
Universität Bern, Switzerland
Peter van den Bossche
Affiliation:
Universität Bern, Switzerland
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Summary

There is currently a prevailing sense of concern among the World Trade Organization (WTO) community of nations that they are witnessing an ignominious end to a dispute settlement system that has thrived for a quarter century. While the precipitous fall from grace for this treasure of the WTO is certainly the result of a network of factors, the proximate cause is relatively clear: an increasingly antagonistic and aggressive orientation taken by the United States (U.S.) – arguably, the center of gravity of world trade flows – toward the system. While there are many examples of the U.S.’s changed posture, two are particularly notable: (i) the U.S. invocation of the General Agreement on Tariffs and Trade (GATT) Article XXI security exception in defense of a steep increase in steel and aluminum tariffs, and (ii) its active refusal to fill vacated Appellate Body member seats. Each action unto itself is a broadside attack capable of rendering the current dispute settlement scheme obsolete. The two in combination form an aura of inevitability with respect to that outcome.

Type
Chapter
Information
International Economic Dispute Settlement
Demise or Transformation?
, pp. 162 - 188
Publisher: Cambridge University Press
Print publication year: 2021

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