The Legal Rules of the World Trade Organization (WTO)

Abstract

 From the beginning of the seventeenth century to the end of the nineteenth century, European countries sought to codify the rules of international trade law in their domestic laws. This was due to a desire to regionalize the rules governing commercial transactions, a result of multiple considerations within each individual country.

 This led to the predominance of international trade provisions based on national principles within each country and a weakening of the general rules of international trade. This began in France and Germany, and was followed by other countries. Because national commercial techniques varied among them, conflicts were likely.

 Therefore, international trade lost the advantages of the substantive customary rules that had developed over time and became subject to the authority of national legislation and the rules of attribution it contained.

 These, in turn, took on a national character that varied from one country to another. This made it difficult to determine the law governing private relations of an international nature in this area. In other words, it made it difficult to determine the legislative jurisdiction to settle disputes arising in the field of international trade. This significant development in industry, transportation, communications, and investment, in an era marked by economic freedom and cross-border trade, on the one hand, and increasing state intervention in private international relations, exerting control over many areas, making the state appear like an ordinary person, on the other, has raised the question of identifying the legislative and legal jurisdiction governing these relations. To address this issue, these countries have issued numerous pieces of legislation in areas that could potentially lead to conflict, such as investment in particular. However, the application of national laws to international trade relations is unacceptable, as they face different circumstances and parties from multiple countries, leading to disruption in commercial transactions.

 The establishment of general measures is tasked with finding appropriate solutions and establishing legal rules regulating private relations between countries in the field of international trade. These are represented by international agreements and treaties, including the 1994 Agreement Establishing the World Trade Organization (WTO) and the related agreements, which have worked to establish unified rules governing commercial activity for its member states. This includes amicable means, namely consultations, good offices, mediation, and conciliation, and judicial means, namely arbitration. A specialized body is responsible for implementing these means and working to implement them through the Dispute Settlement Body.

 The study concluded that the substantive rules contained in the WTO Agreement and the covered agreements are primarily applicable, with discretion being given a role in determining the applicable law in certain cases, and in a narrow manner.