Backing Russia’s right to implement some restrictions on Ukraine could entice countries to implement protectionist trade measures using the security justification. Indeed, nations are increasingly invoking the once-taboo provision to avoid WTO oversight of regional conflicts like Saudi Arabia’s economic dispute with Qatar and India’s conflict with Pakistan.
The ruling is likely to vex the Trump administration, which argues that the WTO cannot decide whether measures are necessary to protect a country’s security interests because it would infringe on that country’s sovereign rights.
Canada, the European Union, Mexico and a half-dozen other U.S. trade partners have asked the WTO to determine if Trump’s metal tariffs are actually necessary to protect America’s national security.
This article was provided by Bloomberg News.