How Should WTO Members React to Their WTO Crises?

Petersmann, Ernst‐Ulrich

doi:10.1017/s1474745619000144

Cited by 23 publications

(9 citation statements)

References 13 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…However, if one or both of the hegemonic powers renounce their obligations or take actions that significantly weaken the WTO, then there are few formal safeguards to prevent economic disputes from escalating into intensive protectionism. Worryingly, the Trump Administration has taken efforts to undermine the WTO and the multilateral trade regime more generally (Petersmann 2019 ; Skonieczny 2019), leading many scholars and analysts to declare the Post-WWII world order as dying or dead (Kagan 2017 ; Mearsheimer 2019 ; Walt 2016 ).…”

Section: Global Stability In a Two-hegemon Worldmentioning

confidence: 99%

China’s Rise, World Order, and the Implications for International Business

2021

View full text Add to dashboard Cite

It is increasingly clear that China’s economic and political power rivals that of the US. This is potentially a serious problem for multinational companies, since China’s rise could lead to more US–China trade conflict and disruption of supply chains, threatening new and ongoing foreign direct investment, and drawing other countries into the jostling for power. However, we argue that globalization is not necessarily endangered by China’s emergence as a comparable power to the US. The US and China both have vested interests in maintaining the open economic order, and these two countries are each providing the global public goods that incentivize economic openness among other countries of the world. In this paper, we develop a theory corresponding to this argument and provide evidence that globalization has not declined even as the global distribution of power has shifted. While global integration is likely to persist, disruptive skirmishes between the US and China will occur with some regularity. Therefore, we suggest that international company strategies today should focus more on risk management related to policy shifts stemming from China’s rise and less on achieving least-cost global supply chains. We present a risk management framework for this purpose.

show abstract

Section: Global Stability In a Two-hegemon Worldmentioning

confidence: 99%

China’s Rise, World Order, and the Implications for International Business

2021

View full text Add to dashboard Cite

show abstract

“…28 So, the WTO Members proposed to amend the provisions of Article 17.2 of the DSU as follows. 1. The Appellate bodies "should deal with each of the issues raised by the parties in the appeal process," however, resolve the necessary degree or limitation of the dispute.…”

Section: Amendment Of Article 172mentioning

confidence: 99%

“…Since early 2017, the US has fully banned the filling of the Appellate Body (AB) members. 1 Such an unthinkable crisis of the WTO is due to the Doha Development Round's failure, the Trump administration's trade protectionism, and the increasing number of despots of popular regimes that have undermined constitutional democracy and principle-based pluralism. 2 Since 2018, the US-China trade war has exacerbated the AB crisis.…”

Section: Introductionmentioning

confidence: 99%

Article 25 as an Alternate Way to Resolve the Crisis of the WTO Dispute Settlement Mechanism: A Chinese Perspective

Jillani¹,

Wu²

2021

China & WTO Rev.

View full text Add to dashboard Cite

The primary purpose of this research is to propose the solution to the current crisis of the WTO dispute settlement system focusing on Article 25 of the WTO Agreement. The Dispute Settlement Understanding is one of the significant successes of the WTO. Recent years, however, have witnessed the difficulties and challenges facing the multilateral trading system along with rising anti-globalization and trade protectionism. The Appellate Body (AB) has been experiencing an unprecedented crisis of dysfunction mainly due to the US's boycott of appointing the new members. The WTO Members, including China, have thus proposed various reforms in response to the crisis. However, they have not touched the core demands of the US. Because of the imminent crisis that the AB is about to stop operating, China should take urgent action with other WTO members, consider launching a majority voting program, design and use alternative appeal arbitration, and combine international rules with domestic deepening reforms.

show abstract

“…However, in the dispute between the US and China, the each side of the dispute indicates the opposite party as guilty of the whole situation. On the other hand, efficiency of the Appellate Body activities deteriorate (Petersmann, 2019). There were 129 appeals filed in 1995-2014.…”

Section: Dispute Settlement Body (Dsb) and Appellate Body (Ab)mentioning

confidence: 99%

Imperfection of the World Trade Organization as a Hazard for International Business

Żołądkiewicz

Orłowska

2020

View full text Add to dashboard Cite

This paper examines the negative impact of the paralysis observed in the World Trade Organization (WTO) functioning on international business. We provide an overview of the loopholes in the WTO rules and principles which became serious threats for the multilateral trading system. Our research identifies important loopholes in the MFN clause, DSB and Appellate Body. We bring clarity that the paralysis observed in the WTO functioning is a consequence of these factors. The deviations and exceptions of the WTO rules permit the WTO members to compete “unfairly”. China is among the economies which are the most efficient in this respect. We term China’s behaviour on the global market as “economic factitious disorder”. It can be explained as permanently maintaining the status of a developing country by China and using preferences for LDCs despite a really high level of economic development. These findings indicate that the WTO lacks the mechanism to react and to prevent such abuses. They were not envisaged by the WTO creators, which suggests the need of the WTO reform. We contribute to international business research and the international organizations literature by identifying the causes of the paralysis of the WTO functioning.

show abstract

How Should WTO Members React to Their WTO Crises?

Cited by 23 publications

References 13 publications

China’s Rise, World Order, and the Implications for International Business

China’s Rise, World Order, and the Implications for International Business

Article 25 as an Alternate Way to Resolve the Crisis of the WTO Dispute Settlement Mechanism: A Chinese Perspective

Imperfection of the World Trade Organization as a Hazard for International Business

Contact Info

Product

Resources

About