A Review on the Financial Risk Management and the Impact of Oil Price Volatility Post-Doha Round under the WTO Framework

Abstract

Oil price volatility continues to pose problems for global economic and trade stability, stemming from the shortcomings of the Doha Round framework. The Doha Round breakdown due to its shortcomings in energy negotiations has resulted in policy voids when managing financial market uncertainties. Research investigates the mechanisms by which WTO agreements together with government policy and corporate strategies reduce the identified risks. A systematic review method was used to analyze about 100–150 sources containing WTO agreements together with peer-reviewed journal articles and conference proceedings and technical reports. The research evaluates three important WTO agreements including General Agreement on Tariffs and Trade (GATT), Agreement on Subsidies and Countervailing Measures (SCM) and Trade Facilitation Agreement (TFA) to analyze their impact on energy trade and financial risk management. This evaluation investigates both public sector and private sector strategic approaches within WTO infrastructure to demonstrate present policy weaknesses and obstacles. The existing WTO management tools display weak performance in confronting oil price disposals alongside economic dangers. The GATT and SCM agreements create general trade liberalization framework and subsidy regulation standards yet they do not have specific provisions for energy trade. The research shows a requirement to strengthen WTO guidelines because they need better risk management support and propose new policy directions to build up the global trade framework. This review helps create links between financial risk management practices and WTO policies, resulting in enhanced stability and resilience of the global energy trade system.