Experimentation at the WTO lab: towards a better ‘Interface’ to accommodate State-owned enterprises

Abstract

Abstract This article advocates for a more inclusive and adaptable interface mechanism at the World Trade Organization (WTO), specifically tailored to address the nuanced dynamics of State-Owned Enterprises (SOEs). It revisits the foundational ‘Interface Theory’ by John H. Jackson, a cornerstone in shaping initial WTO rules for non-market economies. Drawing upon the critiques of David Kennedy, this article identifies three key limitations inherent in the existing interface theory. It then delves into a critical examination of the regulations pertaining to SOEs within the frameworks of the Trans-Pacific Partnership / the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, arguing that these models inadequately address the complexity of state participation in the economy, with a particular focus on non-market economies like China. This article suggests leveraging the WTO as a global policy laboratory, a forum for the exploration and discussion of varied national strategies concerning SOE management. It posits China’s mixed-ownership reform as an exemplary starting point for such experimental endeavours.