General Issue
Vol. XI, No. 2
(Winter '19)

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The Republic of Korea was a relative latecomer towards concluding free trade agreements. However, once its first FTA with Chile came into force in 2004, its FTA network has rapidly expanded. Its 16 FTAs in force so far cover over 70 per cent of its exports and its partner countries account for a three quarter of world GDP. It has FTAs with three of its major trade partners- China, EU and the US- and is in the process of negotiating more that will further increase the coverage. Noting this rapid growth, this paper examines the interesting differences in these FTAs in relation to rules of origin and their verification, in dealing with standards and their compliance and trade remedies. Some of them may provide clues regarding possible ways in which future FTAs may evolve or even be a way for multilateral solutions to emerge on dealing with non tariff barriers.

Two main issues are addressed in this article in the context of rule of law in the European Union and the World Trade Organization. The first issue is the role citizens can play in shaping sustainable trade. Sustainability constitutes a principal concern for various regimes that, because of their nature, are in constant interaction with climate change. The second issue this paper investigates is the potential role of international trade in reducing fossil-fuel consumption. The use of fossil fuels contributes to climate change, so there is no excuse for continued inaction. We argue that, in light of the lack of international consensus on how to effectively tackle climate change, an upstream carbon tax with reinvestment supported by border tax adjustments should be enacted unilaterally by the biggest emitters of green-house gases to reduce fossil-fuel consumption and incentivise global carbon abatement.

This paper analyses how the United States-Mexico-Canada Agreement (USMCA) supports digital trade and cross-border data flows, while also giving governments the scope to restrict data flows to achieve legitimate regulatory objectives. The USMCA has made significant progress developing rules for digital trade, yet more is needed. In particular, trade policy needs to address the drivers behind the significant growth in restrictions on digital trade by supporting the development of international standards and encouraging international regulatory cooperation as well as good regulatory practice. This paper outlines the key USMCA rules that are applicable to digital trade and analyses what more is needed to support digital trade and data flows consistent with domestic regulatory objectives.

Policymakers and analysts frame China’s growing investment in Latin America and the Caribbean as new forms of South-South cooperation. This study situates China’s investment treaties with Latin America in the context of South-South cooperation and measures their relative effects on China’s foreign direct investment (FDI) in the region. Macro-level econometric studies on the relationship between investment treaties and FDI are inconclusive due to methodological limitations, notably, studies must account for qualitative distinctions between political and economic conditions, bilateral relations, the strength of investor rights, and the sector of FDI flows. Based on China’s unique institutional characteristics, I use firm-level data and separate econometric models for public and private firms to measure the effect of China’s investment treaties on China’s Outward Foreign Direct Investment (OFDI). I find that China’s investment treaties with Latin America do not promote China’s OFDI to the region. I conclude that for China-Latin America investment treaties to become instruments of South-South cooperation they must include commitments to bilateral and regional investment institutions. Keywords in this article include investment treaties, investment and development, South-South Cooperation, bilateral investment treaties, international political economy, trade and industrial policy.

This paper examines the auto industry of Uzbekistan and the legal and economic implications of Uzbekistan’s World Trade Organisation (WTO) membership. Uzbekistan’s historically ultra-protected auto industry will eventually face immense pressures from economic actors within and outside its market. Consequently, the State’s only car manufacturer, Uzavtosanoat, may go bankrupt. Therefore, Uzbekistan’s auto industry is in a very precarious position in the prospect of WTO accession. While the WTO accession may give rise to static effects in the short run, it may also result in dynamic effects in the long run. It is vital that the Uzbek government steps into the WTO cautiously in order to avoid any unintended and undesirable economic, social, and/or legal consequences of a WTO membership. This paper argues that smart negotiations require a longer phase-out period for the Uzbek auto industry to remain competitive, at least regionally.

In November 2017, the United States’ International Trade Commission released its full report on Crystalline Silicon Photovoltaic Cells (Whether or not Partially or Fully Assembled into Other Products). It determined that “serious injury” was being caused to domestic producers by imports of solar cells. Under § 201 of the Trade Act of 1974, the President has imposed tariffs on CSPV products which will last until 2021. China requested consultations at the WTO in relation to these measures, and a Panel has been established to resolve the dispute. This will be the first dispute related to “safeguard measures” placed on renewable energy products before the WTO. In this article, I use the ITC decision imposing safeguards on solar products to consider whether emerging renewables markets pose new challenges for the international safeguards regime. In the first part of the article, I provide some background on international trade disputes related to solar power and the safeguards regime at the WTO. In the third part, I consider how safeguards remedies may be used in situations when the world is rapidly shifting towards renewable energy. I first consider whether China’s approach to developing the renewable energy sector is unusual and argue that there are reasons to expect similar forms of support for renewable power in future. I also suggest that other changes in renewable energy markets could lead to demands for safeguard measures. I then consider whether safeguards measures in these situations would be legitimate, arguing that in some situations they would be. I argue that there needs to be a change in the WTO jurisprudence regarding safeguards to account for the shift towards renewable energy, specifically in the form of changes to the understanding of the “unforeseen circumstances” that can give rise to safeguards remedies.

The Trump presidency and other reactionary conservative governments present an immensely powerful danger to the World Trade Organization (WTO). The WTO is largely built on Members’ willingness to comply with its rules, and the current Dispute Settlement Understanding (DSU) is too weak to deter an avowed enemy of the WTO, such as President Trump. This poor enforcement system particularly hurts developing countries, which lack the power under the DSU to effectively deter economic giants like the United States.

The recent Doha Round was supposed to create a more effective enforcement mechanism under the DSU, but it fell apart before any such changes could be made. The most prominent alternatives raised in the Doha Round are ultimately problematic because either they do not address the weakness of retaliation under the DSU or they are unlikely to be approved by the WTO Membership. A new and more plausible suggestion would be the creation of a repeat violator policy, which would provide for much stronger retaliation against those Members who repeatedly disregard the WTO Agreement. Such a policy would be especially aimed at serious threats to the WTO, such as the Trump administration, and could likely be achieved without going through the formal amendment process, making it the most viable measure for countering these new threats to the WTO.

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