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The Use of Economics in WTO Appellate Body Decisions

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  • Thomas J. Prusa

Abstract

While WTO disputes involve legal rights and obligations, economics often can help the Appellate Body (AB) make sense of the dispute and the implications of ambiguous language in the Agreements. This paper reviews three examples of where the economics could have provided a clearer basis for the AB’s decision. I begin by looking at the question of whether countervailing duties can continue to be imposed subsequent to privatization of state-owned enterprises. I next review the question of how antidumping margins are calculated and whether the zeroing methodology is consistent with the fair comparison requirement. Finally, I examine the question of whether the simultaneous application of antidumping and countervailing duties on imports from non-market economies constitutes double remedy. In each of these examples I argue that standard economic theory provides the basis for clear and logic interpretation of the relevant WTO provisions.

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Paper provided by European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS) in its series EUI-RSCAS Working Papers with number 12.

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Date of creation: 18 Mar 2013
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Handle: RePEc:erp:euirsc:p0333

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  1. Crowley, Meredith & Howse, Robert, 2010. "US–Stainless Steel (Mexico)," World Trade Review, Cambridge University Press, vol. 9(01), pages 117-150, January.
  2. Prusa, Thomas J. & Vermulst, Edwin, 2011. "United States – Continued Existence and Application of Zeroing Methodology: the end of Zeroing?," World Trade Review, Cambridge University Press, vol. 10(01), pages 45-61, January.
  3. Campa, José Manuel & Goldberg, Linda S, 2004. "Exchange Rate Pass-Through into Import Prices," CEPR Discussion Papers 4391, C.E.P.R. Discussion Papers.
  4. Bown, Chad P. & Sykes, Alan O., 2008. "The Zeroing Issue: a critical analysis of Softwood V," World Trade Review, Cambridge University Press, vol. 7(01), pages 121-142, January.
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  1. Too much legalese at the WTO
    by Economic Logician in Economic Logic on 2013-05-07 13:36:00

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