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The Sunday Paper – A Tragedy in the Making?: The Decline of Law and the Return of Power in International Trade Relations

Liberals don’t like to be reminded of the harsh truth at the beginning of this paper from Gregory Schaffer, Chancellor’s Professor at the University of California’s Irvine School of Law i.e. power is stronger than law.

Surely the rule of law is a superior model to the rule of man? Well, to a non-liberal the answer is only if you always get what you want. If the rule of law interferes with how you think things can and should be done you can always tear up the law and have it your own way, if you’re a powerful enough player that is.

This, in a nutshell, describes the Trump administration’s policy to the WTO, specifically their attitude to the  dispute resolution mechanism which concentrates power in a final-appeal Appellate Body (AB).

The AB began life in 1995 and consisted of a seven member panel of whom three members would rule on disputes and whose judgement was then binding on both sides. Members had four year terms renewable for four more years. All appointments had to be agreed by all WTO members and until recently the system worked.  The Trump administration has stopped approving new members though and the AB is now down to three members and has thus, de facto, ceased to function.

As the paper points out this move away from multilateralism may have broader ramifications for the resolution of other matters of international concern. Most immediately perhaps, and we have examples already, climate change. More worryingly it may retard cooperation when the next global financial crisis hits (there’s always another one) making it’s impact more severe. Some players may even be prompted to more belligerent positions than they would find themselves in if they were accustomed to the more regular judicial problem solving example that the WTO’s AB has demonstrated for the past 20+ years?

My twopennywoth? As long as there are votes in intransigence, bullying, intimidation and economic policy based on unashamed short-termism there’s unlikely to be any walking back by the current U.S. administration of their current trade policy. SAD?

The paper in full is an easy if none-too-uplifting read and can be accessed via the following link A Tragedy In The Making?

Happy Sunday.

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