| Agri-food Trade Disputes in the WTO: Issues and Policy Tasks | |||
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| Author | Kim, Sanghyun | ||
| Views | 74336 | Publication Date | 2020.02.18 |
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Research Background Along with the expansion of the world's participation in global value chains and trade, the complexity of trade has also increased. Notably, major developed countries such as the United States foretell trade pressure on non-tariff measures such as animal and plant quarantine, raising the possibility of trade conflicts among countries under a global trade keynote that emphasizes fairness and transparency in trade. Trade disputes in the agricultural sector bring about direct changes in the major agricultural policy regimes of each member country, suggest directions for dispute resolution based on trade norms among the parties to the dispute, and provide meaningful examples for the introduction of future policies. Hence, analyzing the WTO dispute cases and identifying key findings will give us lessons to resolve various trade conflicts while maintaining the state’s sovereign rights and maximizing the benefit of trade. This study conducts comprehensive analysis on the cases of trade disputes referred to the WTO Dispute Settlement Body to identify the major issues raised in the disputes and draw policy implications for the agricultural sector in Korea Research Methodology This study conducts a comprehensive analysis on the cases of trade disputes referred to the WTO Dispute Settlement Body to identify the major issues raised in the disputes and draw policy implications for the agricultural sector in Korea. In order to examine the current condition of trade disputes in the agricultural sector and to derive policy implications, we use statistical analysis and review literature, including the WTO dispute documents and the papers of the Committee on Agriculture and the Committee on Sanitary and Phytosanitary Measures (SPS Committee) in the WTO. To ensure the quality of findings, we hold consultations with experts on agriculture policy and trade to reflect their opinions in the study. Findings ○ Changes and Challenges in the International Trade Environment In recent years, the protectionism using non-tariff measures is expanding, and the Mega FTAs are rising. The Mega FTAs contain modernized trade rules between the related parties and expanding the scope of the dispute settlement system in the Agreements. This movement is in line with the discussions on the limitation and reformation of the WTO system. The main issues in the discussion on reformation of the WTO system are the modernization of regulations and the improvement of the dispute settlement system. As the international community calls for changes and reinforcement of trade norms and countries are actively participating in the global value chains, interests among the countries may be conflicted in more diverse sectors. In such changes in international trade rules, it is necessary to analyze existing trade disputes and establish cross-border and domestic policies that can effectively respond to future disputes in the agricultural sector. ○ Current Conditions and Characteristics of WTO Trade Disputes The cumulative number of trade disputes had increased from 316 in the past 50 years of the GATT regime to 574 in 24 years until 2018 since the launch of the WTO multilateral trade system in 1995. The number of disputes involving agri-food (excluding seafood) increased from 136 to 166 in the same period. The number of disputes raised in relation to the Agreement on Agriculture is 81 (14% of all disputes), and the number of disputes raised in relation to the SPS Agreements is 48 (0.8%). The main parties to these disputes are the United States and the EU. Korea’s main parties to the dispute are the United States, the EU, and Japan. There is only one dispute case Korea filed concerning agri-food, which was against Japan. On the other hand, Korea was sued in seven cases: four by the US, and one each by Australia, Canada, and the EU. (The rest is omitted. See the attached file for details.) Researchers: Kim Sanghyun, Cho Sungju, Oh Saera, Park Suyeon Research period: 2019. 1. ~ 2019. 10. E-mail address: sanghyun@krei.re.kr |
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