Navigating state interventions: The pivotal role of PTAs in modern trade conflicts

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Abstract

In international trade, State interventions often challenge the efficacy of traditional anti-dumping and countervailing measures under the World Trade Organization (WTO) framework. This article examines the limitations of the Anti-Dumping Agreement and the Agreement on Subsidies and Countervailing Measures (SCM Agreement) in addressing State interventions, such as export taxes, export bans on raw materials, and non-commercial activities by State-owned enterprises. These interventions pose significant legal and economic challenges in global trade. The article advocates for the potential of preferential trade agreements (PTAs) as practical tools to address these challenges, surpassing traditional legal pathways under the Anti-Dumping Agreement. An analysis of recent WTO disputes demonstrates how PTAs provide targeted disciplines against State interventions that cause market distortions and unfair trade practices. PTAs offer a more rational and equitable approach to managing trade conflicts, avoiding conventional trade remedies’ economic irrationalities and protectionist tendencies. The article proposes a strategic shift towards PTAs to fill gaps left by traditional WTO agreements. It highlights the need for a dynamic, adaptable legal framework in international trade that responds to sophisticated State interventions in the global economy.
Original languageEnglish
Pages (from-to)195-218
JournalChicago Journal of International Law
Volume25
Issue number1
Publication statusPublished - 2024

Keywords

  • State Interventions
  • Preferential Trade Agreements (PTAs)
  • World Trade Organization (WTO)
  • Anti-Dumping Agreement
  • Subsidies and Countervailing Measures (SCM)
  • Export Taxes and Bans
  • State-owned Enterprises
  • Market Distortions

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