Can the developed world respond to Russia’s invasion of Ukraine — a flagrant violation of international law — by adopting measures not rooted in international law? The United States, Canada, and the European Union (EU) are using all the levers available to impose punitive economic sanctions on Russia. An important arrow in the sanctions quiver is trade restrictions. For instance, Canada has suspended the most favoured nation (MFN) treatment to Russia, which it owes to the latter under the rules of the World Trade Organization (WTO), i.e., the global institution that polices the international law on multilateral trade. Canada believes that “those who do not support the rules-based international order cannot benefit from it”. Likewise, the EU and the U.S. are contemplating similar moves.
In a parallel development, the U.S. and the EU have formally notified the WTO General Council that Russia’s participation in the “Developed Countries Coordinating Group” (i.e., an informal group at the WTO) stands suspended due to its “egregious violation of international law, [the] UN Charter and fundamental principles of international peace and security”.