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Is The Use Of The WTO Dispute Settlement System Biased?

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  • Horn, Henrik
  • Mavroidis, Petros C
  • Nordström, Håkan

Abstract

The larger trading nations have been the main users of the WTO Dispute Settlement system during its first four years of existence (1995-1998). This has prompted a debate about whether the DS system is biased against smaller and poorer countries, for example, because of a lack of legal capacities and retaliatory power. This paper shows that a simple model in which countries bring disputes proportionally to the diversity and value of exports explains fairly well the dispute pattern. Differences in legal capacities appear to play some role, while 'power' considerations do not seem to matter.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2340.

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Date of creation: Dec 1999
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Handle: RePEc:cpr:ceprdp:2340

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Related research

Keywords: Dispute Settlement; WTO;

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References

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  1. Louis Kaplow & Steven Shavell, 1999. "Economic Analysis of Law," NBER Working Papers 6960, National Bureau of Economic Research, Inc.
  2. Mavroidis, Petros C & Zdouc, Werner, 1998. "Legal Means to Protect Private Parties' Interests in the WTO: The Case of the EC New Trade Barriers Regulation," Journal of International Economic Law, Oxford University Press, vol. 1(3), pages 407-32, September.
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Citations

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Cited by:
  1. 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.
  2. Bown, Chad P. & Hoekman, Bernard, 2007. "Developing Countries and Enforcement of Trade Agreements: Why Dispute Settlement Is Not Enough," CEPR Discussion Papers 6459, C.E.P.R. Discussion Papers.
  3. Heinz Hauser & Alexander Roitinger, 2002. "A Renegotiation Perspective on Transatlantic Trade Disputes," University of St. Gallen Department of Economics working paper series 2002 2002-09, Department of Economics, University of St. Gallen.
  4. Fritz Breuss, 2004. "WTO Dispute Settlement: An Economic Analysis of four EU-US Mini Trade Wars," WIFO Working Papers 231, WIFO.
  5. 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.
  6. Chad P. Bown, 2005. "Trade Remedies and World Trade Organization Dispute Settlement: Why Are So Few Challenged?," The Journal of Legal Studies, University of Chicago Press, vol. 34(2), pages 515-555, 06.
  7. Bagwell, Kyle & Mavroidis, Petros C. & Staiger, Robert W., 2004. "The case for tradable remedies in WTO dispute settlement," Policy Research Working Paper Series 3314, The World Bank.
  8. Chad P. Bown, 2007. "China's WTO Entry: Antidumping, Safeguards, and Dispute Settlement," NBER Working Papers 13349, National Bureau of Economic Research, Inc.
  9. Pao-Li Chang, 2002. "The Evolution and Utilization of the GATT/WTO Dispute Settlement Mechanism," Working Papers 475, Research Seminar in International Economics, University of Michigan.
  10. Sumimaru Odano & Ziaul Abedin, 2008. "Insufficiency in the dispute Settlement Mechanism of the WTO: Consequences and Implications for the Multilateral Trading System," Working Papers EMS_2008_01, Research Institute, International University of Japan.
  11. Talya Bobick & Alastair Smith, 2013. "The impact of leader turnover on the onset and the resolution of WTO disputes," The Review of International Organizations, Springer, vol. 8(4), pages 423-445, December.
  12. World Bank, 2003. "Global Economic Prospects 2004 : Realizing the Development Promise of the Doha Agenda," World Bank Publications, The World Bank, number 14782, July.
  13. Wilckens, Sebastian, 2007. "Should WTO dispute settlement be subsidized?," Economics Working Papers 2007,02, Christian-Albrechts-University of Kiel, Department of Economics.
  14. Wilfred J. Ethier, 2003. "TRIPS, externalities, trade agreements, hostages," PIER Working Paper Archive 03-034, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.

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