The early stages of the GATT focused on MEs and did not include rules related to NMEs. With the creation of the WTO in 1995 and the participation of NMEs in a multilateral trading system, the WTO became interested in different treatments between MEs and NMEs. However, the ambiguity of the WTO Agreement on NME treatment has been exploited as a tool of protectionism. Particularly, some powerful countries, such as the U.S. and the EU, have even enacted national laws that do not match the WTO to discriminate against NMEs and protect domestic industries. Through trade dispute analysis between the U.S. and China (DS379) and the EU and China (DS397), this study investigates whether the WTO fulfills its fair free trade obligations. If the WTO cannot solve the problem of discrepancy between multilateral agreements and domestic laws, free trade competition will be negatively affected by distorted resource allocation. In order to strengthen the legal status of the WTO and to avoid a global trade war, it is necessary to clarify NME issues on multilateral agreement tables such as the Doha Development Round. NMEs also need to focus on negotiating NME treatment rules and demonstrate diplomatic and political capabilities more than ever.
Ⅰ. Introduction
Ⅱ. Rationales for NME Treatment
Ⅲ. Case Analysis
Ⅳ. Implications and Conclusions
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