Download This PaperRestructuring GATT Balance-of-Payments Safeguard in the WTO System
Journal of World Trade, Vol. 53(4), p. 528-623, 2019.
30 Pages Posted: 25 Oct 2018 Last revised: 23 Apr 2020
Date Written: September 26, 2018
Abstract
The BOP safeguard provisions in the WTO are still haunted by the structure designed for trade and BOP relationship in the postwar Bretton Woods system. The provisions are not only incompatible with the contemporary monetary system but their legal obscurity also retain unproductive loopholes that can further intrude trade relations. It is timely to clarify a proper function of the WTO BOP provisions against modern systemic risks generating chronic financial crises. This study aims to outline a reform agenda for the GATT BOP safeguard provision, suitable to the contemporary WTO and IMF system. The WTO members should decide to legally abolish GATT BOP safeguard measures for the developed countries. This study also suggests ways to substantively institutionalize coordination between recent developments in the IMF on assessing reserve adequacy and WTO management of trade restrictions for BOP purposes.
Keywords: WTO, balance-of-payments safeguard, IMF, institutional coordination, trade and finance
JEL Classification: F10, F13, F55
Suggested Citation: Suggested Citation