Sanctions And Free Trade Sanctions - 1459 Words

Trade sanctions are often associated with a retaliatory action in a trade dispute. Earlier, we looked at the case involving the US and the EU. The WTO had authorized the US to impose sanctions against the EU’s resulting from its ban on hormone beef imports from the US. The WTO is the body set up to promote free trade, and thus, it is strange to see the WTO supporting trade sanctions. However, in this particular case, the WTO judged the best action to be trade sanctions. Then, along with the negative impacts, sanctions can offer positive impacts on trade if applied with the proper and justifiable intention. David Baldwin, a professor of World Order Studies, argues that an economic sanction and free can be compatible. At first glance, this†¦show more content†¦The threatened sanctions and consequences outlined by these bills offer protection for companies to conduct business under the hospice of free trade. The WTO does recognize that sanctions have a role to play if states are found to be in violation of the rules of the liberal trading system. Proponents of BDS have argued that they have a right to choose with whom to do business, and therefore are not obligated to do business with any particular company. However, opponents of the movement, especially those who support the anti-BDS bills would argue that the BDS movement is more than an expression of this freedom. The voice of the movement has a real effect on trade and therefore is much more than speech. The anti-BDS bills, even though politically motivated, are to counter what is considered to be actions contrary to trade. Therefore, any potential economic sanction would be to counter the infringements on the liberal trade system, and thus, has the potential of being endorsed by WTO. Baldwin continues by arguing that one of the most longstanding exceptions to the doctrine of free trade concerns national security. He argues that free trade advocates, Adam Smith, and John Stuart Mill, approved the Navigation Acts, which restricted trade on national security grounds (Baldwin). Richard Cobden, a