Steel, security and the WTO Dispute Settlement Mechanism: A trade catastrophe in the making

Abstract

The World Trade Organization's (WTO's) Dispute Settlement Mechanism has been rendered ineffective by the refusal of the United States to allow appointments to its Appellate Body. The implicit reason for this poor state of affairs is the desire of the United States to protect its steel sector under the WTO's national security exception. The arguments made by the United States in this regard are mostly spurious and reflect its status as a current bad faith actor within the WTO. The posture of the United States is undermining both the effectiveness and legitimacy of this important trade institution. This article examines both the events leading up to this situation, the commercial interests behind them, and their legitimacy under WTO law.