This chapter examines the international rules governing SOEs, including those in the World Trade Organization and various free trade agreements (FTAs), focusing on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The chapter analyses the specific provisions of CPTPP Chapter 17, which sets forth a comprehensive set of disciplines on SOEs, including definitions of SOEs, commercial activities, commercial considerations, designated monopolies, and non-commercial assistance. It also discusses the concepts of adverse effect and injury caused by SOEs, as well as exceptions to the disciplines. Finally, the chapter offers observations on the CPTPP’s rules, including the definition of SOEs, the scope of commercial activities, and the extraterritorial effect of FTAs.

This chapter explores the relationship between international trade and sustainable development, with a particular focus on climate change. It traces the evolution of the multilateral trading system from its origins in the General Agreement on Tariffs and Trade to the present day, highlighting the shift from a focus on trade liberalisation to a broader commitment to sustainable development. The chapter examines how the World Trade Organization has grappled with integrating environmental concerns into its framework, including the development of ‘greening’ jurisprudence, institutions, and rules. It proposes a reform agenda to further align the trading system with global sustainability goals, emphasising the need for alignment with climate change commitments, harmonised sustainability standards, reformed subsidy approaches, governance and institutional reforms, and a focus on equity and justice.

This chapter analyses security exceptions in international trade law, focusing on their interpretation and application within the World Trade Organization (WTO) and preferential trade agreements (PTAs). It examines the evolving nature of national security concerns, particularly in cybersecurity, and how these concerns intersect with trade regulations. The chapter discusses the justiciability of security exceptions, the level of deference accorded to states in defining their security interests, and the challenges posed by the expansion of security concerns beyond traditional military domains. It also evaluates the adequacy of existing WTO and PTA frameworks in addressing contemporary security issues, suggesting that further innovations may be necessary to balance trade liberalisation with national security imperatives in the digital age.

This chapter examines the legal framework of contingent protection measures in international trade, focusing on anti-dumping duties, countervailing duties, and safeguards. It outlines the relevant WTO rules, including the General Agreement on Tariffs and Trade (GATT), and explores the justifications for these measures. These trade remedies, while protectionist, address concerns of unfair trade practices and market disruption. The chapter also addresses the challenges posed by non-market economies and the evolving role of subsidies. Finally, it discusses the economic, political, and geopolitical rationales for contingent protection, highlighting the tension between fairness and efficiency in international trade.

This chapter examines the role of tariffs and quotas in international trade law, focusing on their regulation within the General Agreement on Tariffs and Trade and the World Trade Organization. While often associated with free trade, these legal frameworks primarily discipline rather than prohibit protectionism, favouring tariffs as the more acceptable instrument. The chapter traces the evolution of tariffs as the preferred trade barrier, contrasting them with the general prohibition on quotas. It also discusses the complexities of tariff application, including classification, valuation, and origin determination. Finally, it considers the future of tariffs and quotas, and the challenges of achieving full trade liberalisation without regulatory harmonisation to prevent regulatory arbitrage.

This chapter examines the historical development of economic thought concerning international trade, tracing its evolution from early barter systems to contemporary theories. It explores mercantilism, classical theories of absolute and comparative advantage by Smith and Ricardo, and neoclassical economics’ focus on consumer preferences. The chapter delves into imperfect competition, introducing concepts like monopolistic power and product differentiation, which led to ‘New Trade Theory’. It also discusses efficiency maximisation, non-discrimination principles like MFN and national treatment, trade in services, and international vertical integration. The chapter concludes by emphasising the significance of reciprocity in trade relations and the role of the WTO in promoting international cooperation and reducing trade barriers.

This chapter discusses the history and evolution of international intellectual property rights (IPRs) protection, focusing on the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement. It examines the justifications for and debates surrounding the extension of developed country-style IPRs to developing nations, as well as the TRIPS provisions themselves. The chapter also addresses the conflicts between TRIPS and other international regimes, such as the Convention on Biological Diversity, and the significant public health concerns raised by TRIPS, particularly regarding access to essential medicines. Finally, it concludes by analysing the distributive impact of TRIPS and the challenges posed by emerging technologies like artificial intelligence.

This introduction to The Cambridge Companion to World Trade Law introduces the book’s purpose and structure. The volume is intended to be an authoritative and accessible guide to the field, appealing to both legal specialists and those with no specialist knowledge of trade law. It is written by experts and provides a compact discussion of the perspectives, enduring issues, and emergent challenges in the field. The introduction also discusses the current context of world trade, highlighting the divisions in the world following decades of growth and the challenges posed by globalisation. It sets the stage for the chapters that follow.

This chapter examines the legal and political economy issues surrounding trade in services, focusing on the General Agreement on Trade in Services (GATS). It contextualises the GATS’s origins, structure, and key obligations, including market access, national treatment, and MFN. The chapter also analyses the complexities of scheduling commitments, exceptions, and the evolving landscape of services trade. It concludes with a critical reflection on the challenges and future prospects of regulating services trade in the context of digital transformation and geopolitical tensions.

This chapter explains the reasons for the stalemate in the WTO negotiations on domestic agriculture support, public stockholding (PSH) for food security purposes, and fisheries subsidies. The negotiations are crucial for achieving Sustainable Development Goals related to zero hunger, food security, sustainable agriculture, and marine resources. In agriculture, members are divided on disciplining trade-distorting support and addressing historical asymmetries. The PSH negotiations are contentious owing to disagreements on a permanent solution and calculation of the external reference price. Fisheries subsidy negotiations have stalled on the issue of over-capacity and overfishing subsidies, despite progress on illegal, unreported, and unregulated fishing.

This chapter examines the evolving landscape of digital trade regulation, tracing its transformation from early electronic commerce initiatives to the current focus on the data-driven economy. It analyses the dynamic regulatory models emerging in free trade agreements and digital economy agreements, highlighting the influence of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The chapter further investigates the progress and challenges in digital trade governance within the World Trade Organization, particularly the Joint Statement Initiative on Electronic Commerce. It concludes by assessing the impact of digitalisation on global trade law, noting both legal innovations and setbacks owing to geopolitical differences and the complexities of integrating domestic data governance with international trade commitments.

This chapter analyses the WTO’s institutional features, focusing on rule-making and dispute settlement. It describes the creation of the GATT and the shift to the WTO, analysing salient aspects of the WTO’s structure. It reviews how WTO institutions have operated, highlighting problematic features and identifying potential reforms. The WTO is widely viewed as a seriously flawed institution. Despite its goal of promoting liberalised trade, members have found it virtually impossible to conclude new agreements. The dispute settlement system, once viewed as its crown jewel, now lies in tatters. While many factors have contributed to the current situation, the multilateral trading system’s institutional architecture is deeply implicated.

This chapter examines the political economy of international trade policy, exploring the evolution of the international trading system from the GATT to the WTO. It analyses the fault lines between free trade and fair trade and winners and losers, and the role of labour market policies in addressing transition costs. It also discusses the challenges facing the WTO, including institutional dysfunction and an expanding mandate. It proposes potential solutions, such as plurilateral agreements and improved institutional arrangements, while emphasising the need for collaboration with other international agencies. The chapter concludes by stressing the urgency of recovering the aspirations of the post-war international order to address current global challenges.

This chapter examines the complex relationship between international trade law and public health. While trade liberalisation can lower the cost of medical supplies and raise global standards of living, trade rules also constrain national public health measures and can facilitate trade in harmful products. The chapter analyses how the World Trade Organization (WTO) has addressed health-related trade restrictions, including disputes over tobacco, alcohol, and asbestos. It also explores the tension between intellectual property rights and access to essential medicines, as well as the impact of trade on healthcare supply chains, particularly during the Covid-19 pandemic. The chapter concludes by critiquing the WTO’s ‘exceptionalism’ framework for evaluating public health measures and arguing for a more integrated approach that prioritises both health and economic resilience.

This Chapter, the final chapter, concludes and discusses the future directions of the research on security exceptions. It examines the evolving role of security exceptions in international economic law, particularly within the WTO framework. While traditionally viewed as shields for states to implement necessary security measures, these exceptions increasingly serve as tools for economic protectionism and geopolitical leverage. The Chapter explores the complexities of balancing trade commitments with national security concerns, highlighting inconsistencies in adjudication and the risks of opportunistic state behavior. It proposes a dual framework distinguishing between conventional and novel security measures, advocating for clearer rules, procedural safeguards, and a compensation mechanism to deter abuse. Additionally, it calls for WTO reforms, stronger cooperation with the UN, and revisions to regional trade agreements and investment treaties to ensure security measures remain transparent, time-bound, and economically efficient.

National security concerns have long shaped international relations, with economic interdependence traditionally seen as fostering stability. However, recent geopolitical shifts have challenged this assumption. The strategic rivalry, particularly between the US and China, has raised the stakes of international competition and new forms of economic warfare. Historically committed to multilateralism, the EU faces pressures to reassess its approach due to an increasing use of economic coercion by other states. Emerging powers, particularly BRICS, are also redefining their roles in the global order, employing economic tools to counter Western hegemony. As unilateralism rises and the effectiveness of multilateral institutions like the WTO is questioned, a “new geo-economic order” appears to be emerging. This Chapter creates the basis for the normative and evaluative questions of this book by exploring how major economic players navigate national security concerns in an increasingly fragmented trade landscape.

A framing case study discusses European Union trade rules that ban the sale of all products made from seals. Then the chapter provides an overview of international trade law. The chapter discusses: (1) how states have historically promoted international law, including major concepts and the evolution of trade institutions; (2) major obligations under contemporary trade law, including rules for market access and treatment standards; and (3) major exceptions under trade law that allow states to restrict trade to prevent unfair trade, safeguard economies from unexpected shocks, protect competing values (like human health and the environment), and preserve national security.

Abstract: This chapter examines the system of remedies applied in WTO dispute settlement, sometimes called ‘prospective’ or ‘forward-looking’. This system integrates remedy repetition and remedy escalation, with remedies being issued sequentially: initial rulings (Mere Adjudication and Declarations of Breach) are followed by the possibility of compliance adjudication, and, where this is insufficient, the prospect of escalation through authorised trade retaliation (Permissible Responses). While authorised retaliation is often seen as the key WTO remedy, the practice shows that it is rarely implemented. Instead, the system’s strength lies in mobilising the deterrent effect of remedy escalation together with the reputational costs of declared non-compliance. The chapter considers the historical evolution of remedies applied in international trade law, from the GATT 1947 to the current Dispute Settlement Understanding, analysing their central components and practical applications. The design of the WTO’s system of remedies, which seeks to mobilise the various layers of pro-compliance forces of international law, provides an analytical framework for the subsequent chapters assessing the remedial practice of international courts in the face of non-compliance.