February 25, 2024

Thiago Almeida: A plea for a vacuum in the U.S. and WTO on Ukraine

The beginnings of a split in the Western bloc are seen as senior EU officials say the US is the biggest beneficiary of the war in Ukraine under the Biden administration.[1]. To reach this conclusion, a quick review is necessary.

Doss Agency

withAt the start of the Russian invasion on February 24, 2022, Europe faced its energy crisis. Countries like Germany and Italy, heavily dependent on Russian gas, have had to look for alternatives to meet their energy needs.

Already in mid-2022, the European bloc and its member states, aware of the ongoing military conflict in Ukraine, sought to preserve energy reserves for the winter. This option mainly came from liquefied gas from the US [2] and Qatar [3]. However, the sold price is four times the value of Russian gas.

In this way, the U.S. (also(except Qatar) opened up new demands for gas in a short period of time, securing supply contracts for the European continent [4]. This fact allowed the entry of new currency to these countries. A one-time export of liquefied gas from the US to Europe is estimated to generate a net profit of USD 200 million.[5].

Since then, the United States by supporting UcrUkraine continues to contribute billions of dollars in arms purchases to be sent to the Ukrainian government, whose defense sector has been limited to short-term energy availability problems that harm European countries. The year 2023 marks the entry of tanks from NATO countries such as Germany, the United States and the United Kingdom in support of Ukraine. [6].

Other creFor North American allies from the European Union, two pieces of legislation were passed by the Biden administration: the Anti-Inflation Act (A reduction in inflation Drama desire) [7] and Chips and Science Act (Chips and the Law of Science) [8]. In general, the approved legislation aims to introduce subsidies to the national industry, mainly chips (mostly produced in Taiwan) and electric cars, in addition to renewable energies and other areas of clean energy. These laws require production in North American territory to receive public credits, and require national content in their production.

In this sense, such lawsIt reduces the competitiveness of other countries operating in the cleantech sector, such as Europe, generating criticism from European allies. [9].

conditionThe US action on the IRA and the legislation on chips stem from trade competition with China, creating negative consequences for Europe and its regional energy crisis. It should also be added that the transition in US government from Republican front-runner Donald Trump to Democrat Biden has seen little change in terms of trade policy. With Biden, there is an increase in trade protectionism.

oh I am“Eric Furst” For American voters of the Biden administration, especially “cIndorerust” (Rust Belt) located on the Great Lakes, which includes cities such as Chicago and Detroit, is characterized by the effects of globalization in the departure of firms to produce in other countries with cheaper labor, such as China and Southeast Asia.Dico [10].

From an international perspective, theThe United States will lead industrialization in Europe and escalate a “trade war” with Chinese manufacturing. In the midst of this situation, the EU finds itself in the midst of an energy crisis and the demand to transition to renewable economies, as well as the humanitarian issues of Ukrainian immigration and yet another conflict event in the European region.

AlApart from the humanitarian issue and the lives at risk in armed conflict on the European continent, war contributes to significant economic changes internationally. Examples of economic changes can be found in discussions at the World Trade Organization, whose dispute settlement system is still paralyzed by the United States’ refusal to approve renewal of judges at the WTO Appellate Court.

Know about ausThe Court of Appeals in Office, WTO members who have failed in a particular dispute at first instance appeal to the void, (thePeel in a vacuum) [11], To avoid the need to comply with the organization’s rules. For example, the United States recently appealed a panel decision against a ruling in favor of Hong Kong. [12].

appealUS action for a loophole to avoid compliance with WTO decisions has occurred in four other cases where the body’s panels have decided that the US must abide by its rules. The aforementioned panels DS544, DS552, DS556 This is DS564Regarding the application of measures on aluminum and steel products against China, Norway, Switzerland and Turkey respectively. [13].

Notwithstanding the obligations expressed in s The United States’ reluctance to adapt to the multilateral system became notorious when the WTO Ministerial Conference (MC12) held in 2022 engaged in discussions to fully withdraw the dispute settlement system in 2024. [14].

Thiago Ferreira Almeida is a lawyer and holds a PhD in International Investment Law at the Faculty of Law of the University of Geneva (Unige), UFMG Faculty of Law, Professor and Coordinator of the Jean Monnet Center of Excellence (Erasmus+ & UFMG), Center for International Law (Sedin).