Textiles and Clothing (T&C) is a critically important sector of international trade for developing countries and least developed countries (LDCs). The T&C sector engages abundant labour resources and requires low investment threshold. The T&C sector has been a contentious area in multilateral trade negotiations. With the expiration of quotas in 2005, many T&C dependent countries are experiencing considerable adjustment challenges. Pakistan is one such country that is extensively reliant on T&C industries. This research note presents a brief case study which looks at post-quota developments in Pakistan's T&C trade and the trade and economic policy issues it raises. JEL: L67, L52, F50

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Recent years have witnessed a rise in conflict between WTO members over the use of state subsidies designed to promote the renewable energy sector. Government subsidies are seen by domestic polic-ymakers as a key catalyst in attracting foreign investment, building capacity, and meeting other domestic policy goals. However, subsidies and other state incentivization programmes often carry trade-distorting effects. This paper examines the current state of WTO law and jurisprudence on subsidies extended to achieve environmental goals, in particular the Canada-Renewable Energy/Feed-in Tariff case and the more recent India-Solar Cells case which higlights the localization problem in the renewable energy sector. The case outcome shows that the WTO continues to maintain the status quo by prioritizing free trade over environmental considerations. The paper also discusses the possibility of reform in the GATT/WTO framework for promotion of renewable energy initiatives while maintaining the integrity of the system.

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Investor-state dispute settlement (ISDS) has given rise to systemic issues of power and control that entails a possible new direction to be taken in its future development. This article explores three alternative solutions to the problems of ISDS. The first solution is to follow the EU proposal in the establishment of the Investment Court System (ICS) as a standing body, to settle disputes between foreign investors and host governments. The second possible solution is to consider the work done by the United Nations Commission on International Trade Law (UNCITRAL) in reforming the ISDS system through adoption of the Mauritius Convention approach. The third possible solution is to establish a regional bloc-based approach proposed by the Union of South American Nations (UNASUR) countries. This article argues that, as things stand today, the EU proposal is the most likely future direction for ISDS. This is because, in delineating the rights for investors and host states, the establishment of the ICS reflects the primary role that ISDS was designed to play. It is argued that the certainty and efficiency within the EU approach, when compared to the complexity inherent in the regional bloc-based approach and in the still nascent UNCITRAL's Mauritius Convention approach, makes for a better framework upon which future developments in ISDS can be based.