The recent trade war between the United States and China has compelled a critical reassessment of rule-based multilateralism and the global issue of trade imbalances.

In a significant policy move, President Donald Trump introduced a system of ‘reciprocal tariffs’, a measure targeting countries that maintain a trade surplus with the United States. Although framed as reciprocal and fair, such tariffs fall outside the purview of World Trade Organization (WTO) norms and represent a fundamental challenge to the existing multilateral trade order.

Prior to the establishment of the WTO in 1995, global trade lacked a coherent and enforceable regulatory architecture. The WTO emerged as a permanent institution to govern world trade through a system of multilateral agreements designed to reduce trade barriers and ensure fairness, predictability, and stability in trade relations. Central to the WTO regime was the principle of non-discrimination embodied in the Most-Favoured Nation (MFN) and National Treatment clauses and the discouragement of protectionism.

However, the WTO’s ability to effectively mediate disputes and enforce compliance has waned in recent years. Developed and developing countries alike have........

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