Dispute resolution within the WTO: the case of the U.S.-China trade war

Abstract

In this thesis, the analysis is focused on the Trade War between the United States and China. The issue is analyzed from a legal perspective as well as from a political perspective. The goal of this thesis is to find out whether the WTO dispute settlement mechanism is effective in opposing economic nationalism and whether it has one at all. Also, the analysis is focused on possible legal and political consequences of this confrontation, as it is not quite possible to determine efficiency without indicating the consequences. After analyzing the materials, the author has concluded that the effectiveness of the WTO in the case of the US-China trade war is very questionable. The author argues that would the WTO system be effective, the conflict between the US and China would not escalate to the point when it is called a trade war and the abuse of exceptions would not be happening either as per analyzed cases. Regarding the possible consequences, the author has indicated a possibility of a reform of the WTO as well as loss of authority as a dispute settlement body due to its ineffectiveness and growing skepticism. For the main actors, the author did not indicate legal consequences as such, but the economic consequences of the legal decisions are drastic not only for the main actors but for the side-actors as well. The author has also indicated a loss of trust on the international level and the negative image of the main actors as well as the leaders of China and the US, therefore.