The WTO and the regulation of international trade. Recent trade disputes between the European Union and the United States

Abstract:

This book looks at recent trade-related disputes between the European Union (EU) and the United States (US) and offers a critical overview of dispute settlement procedures of the World Trade Organisation (WTO). The contributions arise from papers submitted to conferences of the International Economics Study Group (IESG) held in Birmingham in July 2000 and January 2001.

The first chapter introduces key issues related to protectionism and trade liberalisation in the context of the evolution of the General Agreement on Tariffs and Trade (GATT) and the 1995 Uruguay Round Agreements. Chapter two addresses the shortfalls of the GATT dispute settlement with an exploration of its strengths and weaknesses. Chapter three looks at the North American Free Trade Agreement (NAFTA) dispute resolution system and the extent to which it influenced the outcome of the Uruguay Round trade negotiations. Chapter four considers the rules-based WTO system and its impact upon dispute settlement in the trade of agricultural products, and discusses the implications for the EU’s Common Agricultural Policy. Chapter five deals with the negotiations on agriculture with particular reference to the Doha Development Round and the constraints encountered by the EU and the US with their own domestic political calendars.

The focus of the remaining chapters rests on recent specific trade disputes between the EU and the US. The chapters discuss the banana import dispute, the power struggle surrounding the steel market, the difficulties of different tax regimes and the beef hormone dispute. The book also discusses Generically Modified products, related to the beef hormone dispute, and the deficiency of the WTO to solve the dispute. Discussion turns in chapter eleven to some moral and ethical issues regarding disputes surrounding process and production methods, for example exploitation of child labour, health and environmental hazards in use and production of goods. The final chapter draws evidence from earlier chapters to assess the strengths and weaknesses of the WTO’s dispute settlement procedures and plants some signposts as to the way ahead.