The Discussion of Binding Precedent of WTO Dispute Resolution System

The WTO dispute resolution system has been gradually incorporating a doctrine of binding precedent. However, whether WTO has officially embraced binding precedent system remains unknown. The WTO has embraced the de facto precedent system. Including a doctrine of precedent provide would increase security and predictability to the multilateral trading system. The article firstly analytically discuss the features of current WTO Jurisprudence; following with the discussion of the necessity and urgency to develop a formal binding precedent system in DSB; thirdly, appropriate methods which should be adopted through the binding precedent system would be discussed.

US–China Trade War: A Way Out?

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.