Geopolitics Quarterly

Geopolitics Quarterly

Navigating Tensions: Sanctions and Trade Law in Global Diplomacy

Document Type : Original Article

Authors
Haikal Syazwan Bin Syahrol Asyril 1
Ammar Abbas Al-Husseini 2
Alaa Abdulahsen Jaber 3
Rasyikah Md. Khalid 1
1 Faculty of Law, University Kebangsaan, Malaysia.
2 College of Law, Al-Mustaqbal University, Iraq.
3 College of Law, Al-Bayan University, Iraq.
10.22034/igq.2026.544732.2075
Abstract
In recent years, the increasing invocation of national security exceptions in trade disputes has strained the coherence of the multilateral trading system. This paper explores the legal and geopolitical implications of Article XXI of the GATT, focusing on how its growing use—particularly by powerful states—challenges the legitimacy of WTO dispute settlement mechanisms. Addressing a significant gap in legal scholarship, the research examines the tension between sovereign discretion and multilateral accountability, an area complicated by vague treaty language and political misuse. The study’s main objective is to assess whether existing WTO frameworks can effectively constrain the abuse of the national security exception while preserving state autonomy. Using a qualitative doctrinal methodology enriched by comparative legal analysis and a focused case study on Malaysia, the paper evaluates WTO rulings (notably DS512 and DS526), regional trade practices, and Malaysia’s middle-power diplomacy. The findings reveal a shift in WTO jurisprudence toward legal scrutiny of national security claims, emphasizing proportionality, necessity, and good faith. Malaysia’s cautious, multilateral approach offers a model for smaller states navigating coercive trade environments. The study concludes that reforming Article XXI is vital to maintaining the legitimacy of the rules-based trading order amid evolving geopolitical and economic challenges.
Keywords
Economic Sanctions
International Trade Law
WTO Dispute Settlement
Unilateral Trade Restrictions
Middle-Power Diplomacy

Subjects

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Geopolitics Quarterly
Volume 21, Special Issue
Winter 2026
Pages 138-159

  • Receive Date 09 September 2025
  • Revise Date 20 October 2025
  • Accept Date 30 January 2026