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Who Settles Disputes? Treaty Design and Trade Attitudes Toward the Transatlantic Trade and Investment Partnership (TTIP)

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  • Hahm, Hyeonho
  • König, Thomas
  • Osnabrügge, Moritz
  • Frech, Elena

Abstract

What type of trade agreement is the public willing to accept? Instead of focusing on individual concerns about market access and trade barriers, we argue that specific treaty design and, in particular, the characteristics of the dispute settlement mechanism, play a critical role in shaping public support for trade agreements. To examine this theoretical expectation, we conduct a conjoint experiment that varies diverse treaty-design elements and estimate preferences over multiple dimensions of the Transatlantic Trade and Investment Partnership (TTIP) based on a nationally representative sample in Germany. We find that compared to other alternatives, private arbitration, known as investor-state dispute settlement (ISDS), generates strong opposition to the trade agreement. As the single most important factor, this effect of dispute settlement characteristic is strikingly large and consistent across individuals’ key attributes, including skill levels, information, and national sentiment, among others.

Suggested Citation

  • Hahm, Hyeonho & König, Thomas & Osnabrügge, Moritz & Frech, Elena, 2019. "Who Settles Disputes? Treaty Design and Trade Attitudes Toward the Transatlantic Trade and Investment Partnership (TTIP)," International Organization, Cambridge University Press, vol. 73(4), pages 881-900, October.
    • Handle: RePEc:cup:intorg:v:73:y:2019:i:4:p:881-900_6
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    Cited by:

    1. Roel Beetsma & Brian Burgoon & Francesco Nicoli & Anniek de Ruijter & Frank Vandenbroucke, 2022. "What kind of EU fiscal capacity? Evidence from a randomized survey experiment in five European countries in times of corona," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 37(111), pages 411-459.
    2. Beetsma, Roel & Burgoon, Brian & Nicoli, Francesco, 2023. "Is european attachment sufficiently strong to support an EU fiscal capacity: Evidence from a conjoint experiment," European Journal of Political Economy, Elsevier, vol. 78(C).
    3. Nikoleta Yordanova & Mariyana Angelova & Roni Lehrer & Moritz Osnabrügge & Sander Renes, 2020. "Swaying citizen support for EU membership: Evidence from a survey experiment of German voters," European Union Politics, , vol. 21(3), pages 429-450, September.

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