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Reconciling the benefits of free trade with protecting national security: To what extent is overuse of the GATT security exception a threat to global stability?

Session Time

2:45 PM - 3:00 PM BST

9:45 AM - 10:00 AM EDT

In a time of complex economic interdependence and rapid technological innovation, the global trading system is confronted by the entanglement of international commerce and national security. International trade and investment law systems account for national security; governments may invoke an essential security exception to temporarily suspend or deviate from their international trade and investment law commitments. However, the rapid acceleration of reliance on national security justifications in the past few years has created circumstances where the exception has swallowed the rule. What should the concept of national security entail for the global economy? How can governments balance the competing goals of trade/investment liberalization and protection for national security concerns? What about areas that may implicate both, such as digital technologies or climate change? This presentation will assess the economic, political, and legal implications of invoking essential security in designing foreign investment and cross-border trade policy.

Featured TradeExperettes

Dr. Mona Paulsen, Assistant professor in international economic law, LSE

This event is part of The Economist Events Global Trade Virtual Week.

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TradeExperettes WTO Public Forum 2021