Between Trade Retaliation and Net-Zero Shipping: The Legal Conflict of Section 301 and Green Ship Finance

Abstract

This master’s thesis examines how unilateral U.S. trade measures under Section 301 of the Trade Act of 1974, targeting Chinese-linked vessels, interact with international trade law, maritime law, and ship finance during the shipping industry’s transition toward decarbonisation. The thesis is situated at the intersection of the WTO trade regime, international maritime regulation under the IMO, and private governance through green ship finance. Using a combined doctrinal legal analysis and empirical approach, the thesis assesses the compatibility of Section 301 port-entry fees with WTO law, particularly the GATT 1994 and its exceptions under Articles XX and XXI, as well as relevant principles under UNCLOS. The legal analysis is complemented by semi-structured interviews with shipowners and financiers, providing insight into how these measures are perceived and how they affect investment decisions, risk allocation, and access to capital. The findings suggest that the Section 301 measures do not fit neatly within existing WTO categories, making legal justification under current exceptions difficult. Beyond their legal implications, the measures introduce significant regulatory uncertainty into an industry that depends on long-term stability to finance and implement low- and zero-emission technologies. This uncertainty affects ship valuations, lending conditions, and the effectiveness of private sustainability initiatives such as green financing frameworks. The thesis concludes that the Section 301 measures should not be viewed solely as a bilateral trade dispute, but as a broader stress test for today’s fragmented maritime governance. It argues that achieving the IMO’s net-zero targets by 2050 will require more coordinated and predictable multilateral governance, including closer alignment between trade, maritime, and financial regulatory regimes.