The Economics of Trade Disputes, the GATT's Article XXIII, and the WTO's Dispute Settlement Understanding
AbstractEconomic theory has yet to provide a convincing argument that can explain why the threat of retaliation under the GATT/WTO dispute settlement procedures is not sufficient to prevent countries from violating the agreement. We consider the question of why countries violate the agreed-upon rules in the face of explicit provisions which allow them to legally adjust their trade policy. Using the GATT/WTO institutional structure and the guiding principle of reciprocity, we provide a theory suggesting when countries will choose to implement protection in violation of GATT/WTO rules, as opposed to under the relevant safeguards provisions, when trade policy adjustments are necessary between "negotiating rounds." Copyright Blackwell Publishers Ltd 2002.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Economics and Politics.
Volume (Year): 14 (2002)
Issue (Month): 3 (November)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0954-1985
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Horn, Henrik & Mavroidis, Petros C., 2006.
"A Survey of the Literature on the WTO Dispute Settlement System,"
Working Paper Series
684, Research Institute of Industrial Economics.
- Horn, Henrik & Mavroidis, Petros C, 2006. "A Survey of the Literature on the WTO Dispute Settlement System," CEPR Discussion Papers 6020, C.E.P.R. Discussion Papers.
- Fritz Breuss, 2004. "WTO Dispute Settlement: An Economic Analysis of Four EU–US Mini Trade Wars—A Survey," Journal of Industry, Competition and Trade, Springer, vol. 4(4), pages 275-315, December.
- Pao-Li Chang, 2002.
"The Evolution and Utilization of the GATT/WTO Dispute Settlement Mechanism,"
475, Research Seminar in International Economics, University of Michigan.
- Pao-li Chang, 2007. "The Evolution and Utilization of the GATT/WTO Dispute Settlement Mechanism," Trade Working Papers 22062, East Asian Bureau of Economic Research.
- Bruce A. Blonigen & Chad P. Bown, 2001.
"Antidumping and Retaliation Threats,"
NBER Working Papers
8576, National Bureau of Economic Research, Inc.
- Goetz, Christian & Heckelei, Thomas & Rudloff, Bettina, 2008.
"What makes countries initiate WTO disputes on food-related issues?,"
2008 International Congress, August 26-29, 2008, Ghent, Belgium
44335, European Association of Agricultural Economists.
- Götz, Christian & Heckelei, Thomas & Rudloff, Bettina, 2010. "What makes countries initiate WTO disputes on food-related issues?," Food Policy, Elsevier, vol. 35(2), pages 154-162, April.
- Goetz, Christian & Heckelei, Thomas & Rudloff, Bettina, 2008. "What makes countries initiate WTO disputes on food-related issues?," Discussion Papers 56974, University of Bonn, Institute for Food and Resource Economics.
- Chau, Nancy H. & Fare, Rolf, 2008.
"Shadow Pricing Market Access: A Trade Benefit Function Approach,"
6218, University of Bonn, Center for Development Research (ZEF).
- Chau, Nancy H. & Färe, Rolf, 2011. "Shadow pricing market access: A trade benefit function approach," Journal of Economic Theory, Elsevier, vol. 146(4), pages 1631-1663, July.
- Chau, Nancy H. & Fare, Rolf, 2007. "Shadow Pricing Market Access: A Trade Benefit Function Approach," Working Papers 127015, Cornell University, Department of Applied Economics and Management.
- Bown, Chad P. & McCulloch, Rachel, 2009.
"U.S.-Japan and U.S.-China trade conflict : export growth, reciprocity, and the international trading system,"
Policy Research Working Paper Series
5102, The World Bank.
- Bown, Chad P. & McCulloch, Rachel, 2009. "U.S.-Japan and U.S.-China trade conflict: Export growth, reciprocity, and the international trading system," Journal of Asian Economics, Elsevier, vol. 20(6), pages 669-687, November.
- Francois, Joseph & Horn, Henrik & Kaunitz, Niklas, 2008. "Trading Profiles and Developing Country Participation in the WTO Dispute Settlement System," Working Paper Series 730, Research Institute of Industrial Economics.
- Simon Schropp, 2007. "Revisiting the "Compliance-vs.-Rebalancing" Debate in WTO Scholarship a Unified Research Agenda," IHEID Working Papers 29-2007, Economics Section, The Graduate Institute of International Studies, revised Dec 2007.
- Carsten Herrmann-Pillath, 2006. "Reciprocity and the hidden constitution of world trade," Constitutional Political Economy, Springer, vol. 17(3), pages 133-163, September.
- Bown, Chad P., 2004. "Trade disputes and the implementation of protection under the GATT: an empirical assessment," Journal of International Economics, Elsevier, vol. 62(2), pages 263-294, March.
- Weller, Christian E. & Scher, Mark J., 1999. "Multinational banks and development finance," ZEI Working Papers B 16-1999, ZEI - Center for European Integration Studies, University of Bonn.
- Fritz Breuss, 2004. "WTO Dispute Settlement: An Economic Analysis of four EU-US Mini Trade Wars," WIFO Working Papers 231, WIFO.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.