The international trade law is for a good part contained in the WTO agreements. These agreements, while offering the framework for most aspects of trade relations as between member territories, provide for measures against what are considered unfair practices such as dumping and subsidization. The current “codified law” is contained in two separate agreements, i.e., (i) Agreement on Implementation of Article VI of GATT 1994 (frequently referred to as the Anti-Dumping Agreement); and (ii) Agreement on Subsidies and Countervailing Measures (frequently referred to as the SCM Agreement). These two agreements elaborate upon and in a sense extend the Article VI of GATT 1994 (which in turn mirrors Article VI of GATT 1947).

The Anti-Dumping Agreement read with Article VI of GATT 1994 sets out the current rules on dumping and anti-dumping measures. Whereas, the SCM Agreement along with Articles VI and XVI of GATT 1994 provide rules for determination of subsidies and imposition of countervailing measures.

Another tool to protect industry temporarily through imposition of safeguard measures in the form of import tariffs or quotas if confronted by surge in imports that cause or threaten serious injury to the domestic industry is also available under the WTO Agreement on Safeguards. Unlike anti-dumping and countervailing measures, there is no requirement of unfair trade practices on the part of foreign firms or governments. Rather, the rationale for safeguard measures is that a country may need time, and thus temporary protection, to facilitate orderly structural adjustment to a new trading reality.

A particularly important aspect of the international trade law is the WTO’s Dispute Settlement Body (DSB). The DSB operates under the Dispute Settlement Understanding, which has been observed to be “at the heart of the international trading system”. Although, the WTO dispute settlement system encourages resolution of disputes through ‘mutually agreed solutions’, members have the right to request adjudication by impartial panels and the Appellate Body of DSB in all disputes arising from imposition of trade remedy measures as well as the laws allowing such impositions. It is, therefore, important for members to strictly adhere to the prescribed rules laid down under the WTO agreements to avoid trade disputes (which can be quite costly).

The WTO agreements and its dispute settlement system are important in a fundamental kind of way as together they make possible for small countries to expect fairness and equality in trade behaviour in international markets.