Publication Type

Journal Article

Version

acceptedVersion

Publication Date

10-2020

Abstract

Recently, a group of eminent Chinese/US economists and legal scholars issued a thought-provoking Joint Statement on ‘US–China Trade Relations: A Way Forward’. However, the Joint Statement does not provide practical solutions to the real issues in the bilateral negotiations. Moreover, by granting excessive policy space to the two largest trading nations, it would encourage them to further deviate from WTO rules and undermine the multilateral trading system. Drawing on the Theory of Distortions and Welfare, we put forward an alternative framework for the parties to tackle protectionist and trade distortive policy instruments while leaving sufficient policy space for them to pursue non-protectionist policy goals. Our framework would minimize WTO-inconsistent outcomes and prevent further erosion of the multilateral system as we encourage the parties to negotiate in a WTO-consistent manner. Hopefully, this would also provide the groundwork for more inclusive trade negotiations under the multilateral trading system.

Keywords

Trade relations, multilateral trading system, bilateral negotiations

Discipline

International Law | International Trade Law

Research Areas

Public International Law, Regional and Trade Law

Publication

World Trade Review

Volume

19

Issue

4

First Page

605

Last Page

617

ISSN

1474-7456

Identifier

10.1017/S1474745620000348

Publisher

Cambridge University Press (CUP): HSS Journals

Embargo Period

5-3-2021

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1017/S1474745620000348

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