Abstract:
The growing trend of free trade faces challenges in proving the just and fair principle. Research has shown that it happens because the state has an interest to gain the largest benefit from the trade activity, which could potentially harm the other party. Once harm happens and disputes occur, an effective third party is needed to mediate the issue. Therefore, the General Agreement on Tariffs and Trade (GATT) as an agreement transformed the World Trade Organization (WTO) as an entity. This study aims to investigate how international organizations can deliver a mutually satisfactory solution to the disputing stakeholders, understand the mechanism of WTO DSB, and their response to the study case provided. Based on a review of literature and contestation of theories, an assessment is done to answer the objective of the research.
Analysis of the WTO respond towards the study case of High-Performance Stainless Steel Seamless Tubes (HP-SSST) dispute between the European Union (EU) and China on anti-dumping duty imposed by China demonstrated the suitability of WTO as a functioning international organization that embodies the role, function, and characteristic of an IO. Through the perspective of functionalism and international organization, the WTO through the Dispute Settlement Body (DSB), is found effective and qualified in adjudicating disputes and recommending solutions. In addition, the solution has been implemented by China and proven that WTO has the authority to bind the member with the rulings.
