ANALYSIS OF THE LEGAL EFFECTS OF THE US-CHINA TRADE WAR ON THE WORLD TRADE ORGANISATION’S DISPUTE RESOLUTION MECHANISM
ANALYSIS OF THE LEGAL EFFECTS OF THE US-CHINA TRADE WAR ON THE WORLD TRADE ORGANISATION’S DISPUTE RESOLUTION MECHANISM
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Date
2022
Authors
DAWI, Kennedy Sambo
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Abstract
The World Trade Organisation (WTO) has contributed immensely to enhancing world trade
because of its robust two-tier dispute settlement mechanism which has been nicknamed the
“Crown jewel of the WTO”. The United States of America (US) being dissatisfied with some
decisions of the WTO‟s Appeal Body laid some allegations against it. Having lost confidence
in the Appeal Body, the US unilaterally imposed tariffs on some Chinese goods. China
responded by imposing counter tariffs instead of filing a complaint at the WTO. The
imposition of tariffs and counter tariffs sparked a trade war between the world‟s largest
economies. The US also blocked the appointment of judges into the Appeal Body thereby
paralysing its activities. Without a functional Appeal Body, the WTO‟s Dispute Settlement
Body cannot enforce Panel decisions once an appeal has been filed thereby leaving the
successful party with a barren judgement. This research therefore examined the legal
implications of the actions of the US and China on the dispute resolution system of the WTO,
the legal consequences of the absence of the WTO Appellate Body and the legal options
available to other WTO members since the US has refused to allow the appointment of new
judges into the Appeal Body. The research adopted as methodology the doctrinal approach
which entailed the use of statutes, case laws, journals, books and internet sources. The
research finds that (a) theUS has successfully paralysed the Appeal Body by refusing to
consent to the appointment of judges into the Appeal Body;(b) The absence of the Appeal
Body has destroyed the WTO as members lacked the motivation to obey the rules in the
absence of an adjudicatory body that will enforce the rules; (c) that although the WTO
members have the option to resolve trade disputes using arbitration, Preferential Trade
Agreements or Bilateral and multilateral consultations not to appeal panel decisions, none of
alternatives has sufficiently replaced the WTO Appeal Body. The research made far reaching
recommendations including; (a) that members should strive to ensure that WTO Appeal Body
functions; (b)adoption of the option of voting to fill Appeal Body vacancies; (c)amendment
of the WTO agreement and the Dispute Settlement Understanding to accommodate the
differences between state and market economies,
Description
A DISSERTATION SUBMITTED TO THE SCHOOL OF POSTGRADUATE
STUDIES, AHMADU BELLO UNIVERSITY IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF LAWS –
LL. M
DEPARTMENT OF COMMERCIAL LAW,
FACULTY OF LAW,
AHMADU BELLO UNIVERSITY,
ZARIA