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Trade Remedies and World Trade Organization Dispute Settlement: Why Are So Few Challenged?

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Author Info
Chad P. Bown
Abstract

Antidumping and related trade remedies are the most popular policy instruments that many of the largest importing countries in the World Trade Organization (WTO) system use to restrict international trade. This paper empirically investigates the trade remedy and WTO dispute settlement interaction by focusing on determinants of WTO members’ decisions of whether to challenge U.S. trade remedies imposed between 1992 and 2003. While I confirm that the size of the economic market at stake and the capacity to retaliate under potentially authorized sanctions influence the decision to formally challenge a measure, I also find that if the negatively affected foreign industry has the capacity to directly retaliate through a reciprocal antidumping measure of its own, its government is less likely to pursue the case on its behalf at the WTO. I speculate that potential complainants may be avoiding WTO litigation in favor of pursuing reciprocal antidumping and hence “vigilante justice.”

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File URL: http://www.journals.uchicago.edu/cgi-bin/resolve?id=doi:10.1086/429849
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Publisher Info
Article provided by University of Chicago Press in its journal The Journal of Legal Studies.

Volume (Year): 34 (2005)
Issue (Month): ()
Pages: 515-555
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ucp:jlstud:v:34:y:2005:p:515-555

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  1. Bown, Chad P. & Bernard M., Hoekman, 2007. "Developing countries and enforcement of trade agreements : why dispute settlement is not enough," Policy Research Working Paper Series 4450, The World Bank. [Downloadable!]
    Other versions:
  2. Bown, Chad P., 2006. "The World Trade Organization and antidumping in developing countries," Policy Research Working Paper Series 4014, The World Bank. [Downloadable!]
  3. Bown, Chad P., 2005. "Global antidumping database version 1.0," Policy Research Working Paper Series 3737, The World Bank. [Downloadable!]
  4. Bown, Chad P., 2009. "The global resort to antidumping, safeguards, and other trade remedies amidst the economic crisis," Policy Research Working Paper Series 5051, The World Bank. [Downloadable!]
  5. Chad P. Bown, 2007. "China's WTO Entry: Antidumping, Safeguards, and Dispute Settlement," NBER Working Papers 13349, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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