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.

International trade law is a subset of public international law and consists of the rules governing trade between nations. Historically this area of law was primarily concerned with trade in goods, but now includes trade in services (effectively the cross-border supply and consumption of services) and trade in intellectual property. International trade law has relevance to other fields of international economic law, including investment law. However, the focus of this chapter is on trade law as conducted under the auspices of the World Trade Organization (WTO), an organisation that commenced on 1 January 1995. This chapter briefly introduces these concepts, and then explains the current structure of the WTO. It then covers the core disciplines of the General Agreement on Tariffs and Trade 1994 and the main exceptions to these disciplines, before turning to the safeguards, dumping and subsidies regimes. The chapter then introduces the two agreements that cover regulatory standards at the WTO, and finally provides an overview of the General Agreement on Trade in Services.

Accounts concerning the world trading system usually start the debate from the negotiation of the GATT. Trade integration before the First World War, though, had been quite remarkable, and the study of this era enriches our understanding of modern institutions in at least two ways. First, a number of GATT provisions had already been shaped during discussions following the advent of the League of Nations. Second, trade integration before the First World War did not manage to put a brake on belligerent behaviour, putting to rest the old Montesquieuan idea of doux commerce. Recent developments (like the invasion of Ukraine by Russia) can be analysed in this context, so that the world trading community can better grasp the limits of trade integration, and its impact on international relations.

The WTO is founded on commitments that governments make to each other in the General Agreement on Tariffs and Trade. These rules provide a structure for international trade in which governments are generally restricted in when they can raise tariffs on imports and whether they can discriminate among their trading partners. This chapter examines the contemporary framework for international trade and its main rules, including national treatment, bound tariffs, and most-favored nation, as well as the WTO’s dispute settlement process. The Shrimp-Turtle case provides an illustration of how these rules interact with international politics to create new political dynamics.

The theory of law put forward in this book is founded on the idea of interdependence. Interdependence generates goods taking the form of a community. In law a community involves common legal obligations pertaining to goods. The WTO Agreement establishes a “club good.” Its essence is the equality of opportunity for economic operators in members’ markets. These legal arrangements have given rise to enormous networks of global supply and value chains. At the same time, however, they have generated unease at de-industrialization and exposed critical vulnerabilities. Whereas at the time of the WTO’s founding in 1995 the unconditional interdependence called for in the WTO Agreement might have been regarded as beneficial, today it is seen as less so. Consequently, the club good of the organization appears to be splintering into individual goods composed of specific trading relationships. Consequently, support for the organization and its dispute settlement system has ebbed. Nevertheless, there appears to be recognition of residual worth in the WTO Agreement and its dispute settlement system, which may continue to serve as a locus for transformative solutions.

In this chapter, Aris Georgopoulos and Petros Mavroidis examine the contribution of the WTO dispute settlement body to the resolution of trade disputes. This chapter documents the problems and challenges faced by the WTO’s dispute settlement body and reveals their debilitating impact on its work. This chapter then puts forward concrete proposals for the establishment of a new WTO Court and explains why such a course of action has a realistic chance of breaking the current impasse and creating an effective dispute settlement body for trade disputes.

There is an increasing need for international cooperation with respect to trade – to meet the challenges to human health and food security and to deal with climate change, to provide for the greater well-being of the world’s peoples. For conflict-affected countries, integration into the trading system is a path to attaining and then maintaining peace. To be successful in meeting these challenges, much will depend on the external environment – conditions that enable and others that obstruct collaboration. But there is also an environment internal to the trading system, making its institution, the WTO, more fit for purpose by putting into place the necessary reforms.

International economic law is an umbrella term with no fixed meaning. At its broadest, it covers all aspects of economic relations between states, including regulation of the conduct of individuals, corporations and international organisations. A narrower meaning is ‘the segment of public international law directly governing – rather than merely affecting – economic relations between States or international organizations’. The field also embraces governance arrangements, such as the World Bank, International Monetary Fund, and World Trade Organization, as well as the many UN and regional bodies that advance economic development. As space does not permit a discussion of all these aspects, this chapter focuses on two important areas: international trade law and international investment law. International trade law is the body of law, mainly treaty based, that governs the terms on which states permit the trade in goods and services across their borders.

What is the relationship between the global economy and international law? In this chapter, we examine instruments that reflect the liberalism that has prevailed in international trading relations for the last half-century.  The resulting instruments include the articles of the World Trade Organization, the World Intellectual Property Organization, and the Trade-Related Aspects of Intellectual Property Agreement. We also highlight anti-corruption instruments and various non-governmental organizations that also share the goals and processes of international liberalism.   The middle section examines attempts to combat the various and increasingly sophisticated forms of corruption in international business transactions, especially the explosion of difficult-to-combat cyber fraud.  The latter part of the chapter notes a growing trend towards economic nationalist goals, and anti-competitive behavior among state and business elites.

Chapter 3 deflates the myth that China’s state capitalism is a new problem with an extensive review of China’s WTO accession. Drawing from the negotiation records, we demonstrated that WTO Members have been well aware of the potential clashes between WTO rules and China’s state capitalism since the very beginning. Yet, contrary to those who argue that state capitalism is inherently incompatible with the WTO, the Members believed that practical solutions could be found. Thus, they meticulously identified specific aspects of the Chinese system that might undermine its WTO commitments and carefully crafted surgical solutions to address these problems in WTO-consistent ways. Such an approach is much better than the one asking for a complete overhaul of China’s economic system, as it not only minimises the resistance of China but also ensures that the problematic areas are fully addressed. Thus, the theory that the accession negotiation failed to address the problems presented by China’s state capitalism is unconvincing. Instead, the practical approach adopted in the negotiation demonstrates the faith among WTO Members in the ability of the WTO to act as a neutral forum.

This chapter introduces ideas and controversies in international law scholarship on business and human rights. Furthermore, it determines the legal limitations for the EU and its Member States when regulating and remedying rights violations committed by corporations from emerging and developing states. To begin, domestic measures with extraterritorial implications are discussed. Import-restrictive measures also appear an attractive solution for states that are increasingly expected (or obliged) to rein in ‘their’ corporate nationals when they violate rights in third states. Such measures allow states to create an artificial level playing field that enforces the same standards across all corporations that operate in its market. Linking rights to trade concessions is, however, contested. The International Labour Organization and World Trade Organization regimes are discussed. Finally, it is explained that each state has acted unilaterally in developing the rules governing the use of civil adjudicative jurisdiction. Support for local remedies by the extraterritorial state does not distinguish between local and foreign corporations. A cost-benefit critique of extraterritorial remediation over foreign corporations is also presented.

Chapter 15 contains an explanation of the basic rules and procedures contained in Article XIX of the GATT 1994, in the light of the developed requirements and rules contained in the Agreement on Safeguards. It is a summary that places most of the provisions of the Agreement on Safeguards in perspective with Article XIX as the starting point of the multilateral regime on safeguard measures.

Chapter 10 describes the general obligation that Members introduced into the Agreement on Safeguards to terminate measures that were imposed under the rules of the GATT 1947. The provision proved to be effective as all the measures that were notified as pre-existing the WTO have been eliminated. Article 10 is a reflection of the old concern that gave rise to the negotiation of the Agreement on Safeguards: the need to eliminate grey-area measures or measures that escaped multilateral control.

Born of confidence at the height of optimism for economic globalization, the WTO has failed so far to fulfill all the high hopes of its founders. WTO members have largely been unable to agree on new rules to meet new commercial needs, and global trade governance has been fragmented by a resulting proliferation of local and regional trade agreements. The rise of developing countries - and especially the rise of China - have transformed global trade negotiations. The return of economic nationalism in the United States and elsewhere has accelerated a retreat from multilateral trade liberalization and other global solutions in trade.

This chapter sets out the history of the GATT and the WTO, with particular attention to the evolution of dispute settlement in the GATT/WTO from the Havana Charter to the Uruguay Round and beyond. The chapter provides an explanation and an overview of the WTO’s Dispute Settlement Settlement Understanding (DSU), and summarizes efforts to reform the process since 1995. The chapter also discusses the assistance available to developing countries in WTO dispute settlement and provides some tips on researching WTO law. Finally, the chapter provides an overview of the current crisis in the WTO Appellate Body.

The Trans-Pacific Partnership Agreement (TPP), originally intended to cover 12 Asia-Pacific countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam), was arguably the largest and most economically significant regional trade agreement (RTA) ever concluded. Together, the original TPP signatories accounted for about 26% of world trade and 36% of world GDP. In early 2017, the United States withdrew from the TPP on the direction of the then-newly elected US President, Donald J. Trump, casting the agreement’s future into uncertainty.

International trade law is particularly prone to tensions with other areas of global governance given how trade rules interact with public policies addressing environmental and social problems linked to expanding economic activities. This chapter explores how the relations between international trade law and international environmental norms are construed as a matter of law, for example through in-text references to external norms in World Trade Organization (WTO) treaties, and as a matter of social practice, for example when parties make claims about norm relations in the context of WTO litigation, which can catalyse further norm contestation in other ‘fora’. Tracing these legal developments reveals how the international legal landscape can shift due to frictions between bodies of norms. More often than not, such shifts result in subtle adjustments of the relationships between bodies of norms in tension, leaving the substance of overlapping norms unchanged. In some instances, new norms emerge to regulate these interfaces, giving substance to actors’ expectations of how international trade rules should relate to other norms. In this authority game, advantageously negotiating interfaces between bodies of norms becomes increasingly important. The WTO has played this game rather successfully – to the frustration of environmentalists – by establishing strategic linkages on its own terms.