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

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  • 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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Bibliographic Info

Article provided by University of Chicago Press in its journal The Journal of Legal Studies.

Volume (Year): 34 (2005)
Issue (Month): 2 (06)
Pages: 515-555

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Handle: RePEc:ucp:jlstud:v:34:y:2005:p:515-555

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  1. Sykes, Alan O., 2003. "The safeguards mess: a critique of WTO jurisprudence," World Trade Review, Cambridge University Press, vol. 2(03), pages 261-295, November.
  2. Bown, Chad P., 2002. "Why are safeguards under the WTO so unpopular?," World Trade Review, Cambridge University Press, vol. 1(01), pages 47-62, March.
  3. Kyle Bagwell & Robert W. Staiger, 2004. "Enforcement, Private Political Pressure and the GATT/WTO Escape Clause," NBER Working Papers 10987, National Bureau of Economic Research, Inc.
  4. Bown, Chad P. & Hoekman, Bernard & Ozden, Caglar, 2003. "The pattern of US antidumping: the path from initial filing to WTO dispute settlement," World Trade Review, Cambridge University Press, vol. 2(03), pages 349-371, November.
  5. Holmes, Peter & Rollo, Jim & Young, Alasdair R., 2003. "Emerging trends in WTO dispute settlement : back to the GATT?," Policy Research Working Paper Series 3133, The World Bank.
  6. Thomas J. Prusa, 1999. "On the Spread and Impact of Antidumping," NBER Working Papers 7404, National Bureau of Economic Research, Inc.
  7. Blonigen, Bruce A. & Bown, Chad P., 2003. "Antidumping and retaliation threats," Journal of International Economics, Elsevier, vol. 60(2), pages 249-273, August.
  8. Prusa, Thomas J., 1992. "Why are so many antidumping petitions withdrawn?," Journal of International Economics, Elsevier, vol. 33(1-2), pages 1-20, August.
  9. John Greenwald, 2003. "WTO Dispute Settlement: an Exercise in Trade Law Legislation?," Journal of International Economic Law, Oxford University Press, vol. 6(1), pages 113-124, March.
  10. Maurizio Zanardi, 2004. "Anti-dumping: What are the Numbers to Discuss at Doha?," The World Economy, Wiley Blackwell, vol. 27(3), pages 403-433, 03.
  11. Chad P. Bown, 2005. "Participation in," World Bank Economic Review, World Bank Group, vol. 19(2), pages 287-310.
  12. Robert M. Feinberg & Kara M. Reynolds, 2006. "The Spread of Antidumping Regimes and the Role of Retaliation in Filings," Southern Economic Journal, Southern Economic Association, vol. 72(4), pages 877–890, April.
  13. Bown, Chad P., 2013. "How different are safeguards from antidumping ? evidence from us trade policies toward steel," Policy Research Working Paper Series 6378, The World Bank.
  14. Kyle Bagwell & Robert W. Staiger, 2004. "The Economics of the World Trading System," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262524341, December.
  15. Bruce A. Blonigen & Thomas J. Prusa, 2001. "Antidumping," NBER Working Papers 8398, National Bureau of Economic Research, Inc.
  16. Horn, Henrik & Mavroidis, Petros C & Nordström, Håkan, 1999. "Is The Use Of The WTO Dispute Settlement System Biased?," CEPR Discussion Papers 2340, C.E.P.R. Discussion Papers.
  17. Tarullo, Daniel K., 2003. "Paved with good intentions: the dynamic effects of WTO review of anti-dumping action," World Trade Review, Cambridge University Press, vol. 2(03), pages 373-393, November.
  18. Martin, Alberto & Vergote, Wouter, 2004. "Antidumping: Welfare Enhancing Retaliation?," MPRA Paper 5416, University Library of Munich, Germany.
  19. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
  20. Wendy L. Hansen & Thomas J. Prusa, 1995. "Cumulation and ITC Decision-Making: The Sum of the Parts is Greater thanthe Whole," NBER Working Papers 5062, National Bureau of Economic Research, Inc.
  21. Chad P. Bown, 2004. "On the Economic Success of GATT/WTO Dispute Settlement," The Review of Economics and Statistics, MIT Press, vol. 86(3), pages 811-823, August.
  22. James P. Durling, 2003. "Deference, But Only When Due: WTO Review of Anti-Dumping Measures," Journal of International Economic Law, Oxford University Press, vol. 6(1), pages 125-153, March.
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Citations

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Cited by:
  1. Chad P. Bown, 2007. "China's WTO Entry: Antidumping, Safeguards, and Dispute Settlement," NBER Working Papers 13349, National Bureau of Economic Research, Inc.
  2. Chad P. Bown & Meredith Crowley, 2004. "Policy externalities: how U.S. antidumping affects Japanese exports to the EU," Working Paper Series WP-04-12, Federal Reserve Bank of Chicago.
  3. Robert W. Staiger & Alan O. Sykes, 2013. "How Important can the Non-Violation Clause be for the GATT/WTO?," NBER Working Papers 19256, National Bureau of Economic Research, Inc.
  4. MARTIN, Alberto & VERGOTE, Wouter, . "On the role of retaliation in trade agreements," CORE Discussion Papers RP -2037, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. James C. Hartigan & Hylke Vandenbussche, 2010. "Why does the WTO have an Antidumping Agreement?," LICOS Discussion Papers 25310, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  6. Klimenko, Mikhail & Ramey, Garey & Watson, Joel, 2008. "Recurrent trade agreements and the value of external enforcement," Journal of International Economics, Elsevier, vol. 74(2), pages 475-499, March.
  7. Bown, Chad P., 2005. "Global antidumping database version 1.0," Policy Research Working Paper Series 3737, The World Bank.
  8. 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.
  9. 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.
  10. Bown, Chad P. & Prusa, Thomas J., 2010. "U.S. antidumping: much ado about zeroing," Policy Research Working Paper Series 5352, The World Bank.
  11. Kara M. Reynolds & Chad P. Bown, 2014. "Trade Flows and Trade Disputes," Working Papers 2014-05, American University, Department of Economics.
  12. Bown, Chad P., 2006. "The World Trade Organization and antidumping in developing countries," Policy Research Working Paper Series 4014, The World Bank.

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