Global Trade Conflicts and Legal Frameworks: From GATT to Digital Disputes

Abstract This chapter offers an in-depth exploration of the evolution of international trade law, from the mercantilist era to the present day, focusing on the frameworks established to regulate trade and promote economic cooperation. It begins by tracing the historical phases of trade regulation, starting with the protectionist measures of the 16th to 18th centuries. This chapter then discusses the establishment of the General Agreement on Tariffs and Trade in 1947, which laid the foundation for modern trade regulation, and the subsequent formation of the World Trade Organization (WTO) to address the complexities of the global economy. This chapter examines the core principles of the WTO, such as Most-Favored-Nation Treatment and National Treatment, which ensure consistent trade terms and equal treatment for foreign and domestic products. It highlights how these principles have not only facilitated global economic growth but also contributed to political tensions, exemplified by the US–China trade disputes. The effectiveness of the WTO’s dispute settlement system is critically analyzed, noting the challenges posed by powerful nations manipulating the system to their advantage and the lack of enforcement mechanisms. Furthermore, this chapter scrutinizes the intersection of trade law with other domains, including international humanitarian law, global health governance, and national security. It discusses the EU’s support for the WTO in fostering intra-regional growth while grappling with specific policy challenges. This chapter concludes by considering the future of the WTO and the potential need for institutional reforms to better address the demands of a globalized economy.