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Chapter 4 The Evolution and Utilization of the GATT/WTO Dispute Settlement Mechanism

In: Trade Disputes and the Dispute Settlement Understanding of the WTO: An Interdisciplinary Assessment

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  • Pao-Li Chang

Abstract

This chapter provides a theoretical framework of dispute settlement to explain the surge in blocking incidence of GATT panel reports during the 1980s and the variations in withdrawn incidence versus total disputes across different decades of the GATT regime. The study first suggests the role of the degree of legal controversy over a panel ruling in determining countries' incentives to block (appeal) a panel report under the GATT (WTO) regime. The study then analyzes the effects of political power on countries' incentives to use, and their interactions in using, the dispute settlement mechanism, given two-sided asymmetric information regarding panel judgement.

Suggested Citation

  • Pao-Li Chang, 2009. "Chapter 4 The Evolution and Utilization of the GATT/WTO Dispute Settlement Mechanism," Frontiers of Economics and Globalization, in: Trade Disputes and the Dispute Settlement Understanding of the WTO: An Interdisciplinary Assessment, pages 91-118, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:fegzzz:s1574-8715(2009)0000006007
    DOI: 10.1108/S1574-8715(2009)0000006007
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