The 2018 trade wars as a threat to the world trading system and to constitutional democracies

Abstract

The American and Chinese trade wars of 2018 risk undermining not only the law of the World Trade OrganiZaton (WTO), as explained in Part I but also the democratic mandates given bpariaments when thep approved the 1994 WTO Agreement. Illegal import tanffs (e.g., as imposed by US President Donald Trump) and the collective undermining of the WTO dispute settlement spstem run counter to the WTO princples that are incorporated into the trade laws in the United States of America (USA/ US), dealt gith in Part II, and in the European Union (EU), detailed in Part III. Multilevel governance of global pubc goods (PGs)-ke the WTO trading spstem, which has helped left bildons of people out of povery b promoting unprecedented economic welfare, transnational rule of law and compulsory third-party dispute settlements-cannot remain effective j citiZens and democratic institutions fail to hold their governments democratically and legaly accountable for violating 'PGs treaties' (Part IV). This contribution uses the example of the USA and the EU to argue that constitutional democradesincluding Asian democrades kke India, Korea and Japan-must adopt more speajic trade legislations to protect the WTO legal system. Multilevel governance of transnational PGs requires empowering citiZens, paraments and courts ofjustice to limit popukst abuses of trade podgypowers to tax and restrict atzens in man Jestly illegal ways that reduce general consumer welfare, non-discriminatory competition and rule of law.