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Duffy, Frances Annmarie
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The Slow Demise Of The Most Favoured Nation Duffy, Frances Annmarie
Prophetic Law Review Vol. 3 No. 2 December 2021
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/PLR.vol3.iss2.art1

Abstract

The Most Favoured Nation Treatment (MFN) is the founding principle of the General Agreement on Tariffs and Trade (GATT) and its successor The World Trade Organisation. Introduced in 1947 by the GAT, and re-affirmed in 1995 by the WTO, the MFN aimed to rid the world of discriminatory trade practices. This aspirational aim was to create a level playing field for all countries engaged in trade and create more opportunities for developing nations to trade with those already flourishing on the world trade stage. With normative research methodology, this article claims that MFN has never achieved this aim. It examines how the MFN has been eroded over time by exceptions to the MFN allowed by the GAT and the WTO. Preferential Trade Agreements and new trade initiatives such as The Regional Comprehensive Economic Partnership (RCEP) and The Belt and Road Initiative (BRI) are also evidence of more departures from the MFN as countries seek new vehicles for more effective trade. The article concludes that the MFN is becoming more and more irrelevant over time, and little can be done to revive it.Keywords: Free Trade Agreements; Most Favoured Nation Treatment (MFN); Preferential Trade Agreements; Plurilateral Trade AgreementsKehancuran Perlahan Asas Most Favoured NationsAbstrakAsas Most Favoured Nations (MFN) adalah prinsip dasar dalam General Agreement on Tariffs and Trade (GATT) dan penerusnya yaitu Organisasi Perdagangan Dunia (WTO). Diperkenalkan pada tahun 1947 oleh GATT, dan ditegaskan kembali pada tahun 1995 oleh WTO, MFN bertujuan untuk membersihkan dunia dari praktik perdagangan yang diskriminatif. Tujuan aspirasional ini adalah untuk menciptakan 'taman bermain' yang setara bagi semua negara yang terlibat dalam perdagangan internasional dan menciptakan lebih banyak peluang bagi negara-negara berkembang untuk memiliki hubungan perdagangan dengan negara-negara maju di panggung perdagangan dunia. Dengan metodologi penelitian normatif, artikel ini mengklaim bahwa MFN tidak pernah mencapai tujuan ini. Artikel ini mengkaji bagaimana MFN telah terkikis dari waktu ke waktu oleh pengecualian terhadap MFN yang diizinkan oleh GATT dan WTO. Perjanjian Perdagangan Preferensial dan inisiatif perdagangan baru seperti Regional Comprehensive Partnership Agreement (RCEP) dan Belt and Road Initiative (BRI) juga merupakan bukti adanya lebih banyak penyimpangan dari MFN karena negara-negara mencari alat baru untuk perdagangan yang lebih efektif. Artikel ini menyimpulkan bahwa MFN menjadi semakin tidak relevan dari waktu ke waktu, dan sedikit yang dapat dilakukan untuk menghidupkannya kembali.Kata Kunci: Perjanjian Perdagangan Bebas; Asas Most Favoured Nations; Perjanjian Perdagangan Preferensial; Perjanjian Perdagangan Plurilateral
The Appellate Body Crisis: Challenges and Reforms to the World Trade Organization Dispute Settlement Mechanism Hameed, Meeran; Sutrisno, Nandang; Duffy, Frances Annmarie
Prophetic Law Review Vol. 7 No. 1 June 2025
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/PLR.vol7.iss1.art1

Abstract

The World Trade Organization’s Appellate Body—the keystone of the organization’s two-tier dispute settlement mechanism—has been immobilized since December 2019, when the United States repeatedly withheld consent for the appointment of new judges, thereby breaking the quorum required to hear appeals. This paralysis has triggered cascading operational, legal, and political consequences. Drawing on doctrinal analysis of WTO agreements and a focused case study of recent unresolved disputes, this article charts three interlinked effects of the gridlock. First, it has produced an expanding backlog of appeals and encouraged so-called “appeals into the void,” leaving panel reports in limbo and eroding legal certainty for traders and governments alike. Second, the impasse has incentivized members to experiment with ad hoc alternatives—most notably the Multi-Party Interim Appeal Arbitration Arrangement—risking fragmentation of jurisprudence and unequal access to justice across the membership. Third, the stalemate has weakened trust in the WTO’s ability to enforce multilateral rules at a moment of intensifying geopolitical rivalry, undermining incentives for future rule-making on issues such as digital trade and climate-related measures. This study argues that narrowly framed procedural fixes are insufficient; instead, a holistic reform package is required. Recommended measures include a time-bound and automatic judge-appointment process insulated from single-member vetoes, streamlined appellate procedures to curb excessive litigation delays, and a renewed political compact—possibly codified in a ministerial declaration—reaffirming shared commitments to an independent and binding dispute settlement system. Restoring a credible and predictable appellate function is indispensable for preserving the WTO’s centrality in global trade governance and for sustaining confidence in a rules-based international trading order