Conclusion: Advancing International Trade Law Objectives in Times of Restrictions: Summary for Policymakers

For many years, international trade law has been organized around the norms of neutrality, which allows trade institutions to balance the competing interests of neutral and blockading countries while ensuring respect for treaty obligations. However, as shown in the case studies in this book, the gradual weakening of multilateralism, rise of isolationism, competitive geopolitics, as well as the weakening of dispute resolution mechanisms of trade institutions may weaken the neutrality, functionality, and effectiveness of international trade institutions in times of trade restrictions. Given the wide-ranging impacts of trade restrictions, such as blockades, on the implementation of trade treaties at domestic, regional, and global levels, and on different economic sectors and actors, such as energy trade, infrastructure development, agribusiness, aviation, and diplomacy, amongst others, there is a need for neutral, effective, and resilient trade institutions that preserve trade objectives, even in times of trade restrictions. Addressing the disruptive impacts of trade restrictions on sustainable development requires dynamic legal innovation and transformation at international, regional, and domestic levels. At international and regional levels, building resilient, neutral, and effective trade institutions can reduce the disruptive impacts of trade restrictions on the implementation of trade treaties. At domestic levels, integrating resilience planning into the design and implementation of trade policies and legislation can help countries to better anticipate and respond to the disruptive impacts of trade restrictions. Despite this reality however, there remains a need to address policy reluctance that may hinder such transformations. Why is there such reluctance to change in international trade law and practice to enhanced neutrality and resilience? What are the required steps to address such reluctance? These are what we address in this chapter. This chapter discusses the drivers of the slow and fragmented response to the gradual erosion of neutrality and effectiveness of trade institutions. It unpacks the guiding principles of nexus and integrated governance required at international, regional, and domestic levels to promote the neutrality and effectiveness of trade institutions to coherently address the adverse sustainable development impacts of trade restrictions.