The Politics of WTO Enforcement Mechanism
AbstractThis paper attempts to develop a formal economic framework to analyze the influences of domestic political considerations by democratic governments in shaping the WTO enforcement outcomes in the wake of a violation ruling against the defendant. Since a different mix of import and export sectors in the defendant and complainant country will benefit from the various potential enforcement outcomes, they become competing forces which steer the strategic interactions between the disputing governments. The results of the paper illustrate the complainant’s strategy in selecting the retaliation list, and the likelihood of the defendant’s compliance or compensation in response to the proposed or foreseeable retaliation, given the political and economic environments on both sides of the disputing parties. This paper also captures the possibility of enforcement failures under the current WTO dispute settlement procedure, where the complainant does not have enough retaliation capacity to induce compliance or some form of compensation from the defendant.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Singapore Management University, School of Economics in its series Working Papers with number 04-2004.
Length: 31 pages
Date of creation: Jan 2004
Date of revision:
Publication status: Published in SMU Economics and Statistics Working Paper Series
Other versions of this item:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Grossman, G.M. & Helpman, E., 1992.
"Protection for Sale,"
21-92, Tel Aviv.
- Gene M. Grossman & Elhanan Helpman, 1992. "Protection For Sale," NBER Working Papers 4149, National Bureau of Economic Research, Inc.
- Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 162, Princeton, Woodrow Wilson School - Public and International Affairs.
- Grossman, Gene & Helpman, Elhanan, 1993. "Protection for Sale," CEPR Discussion Papers 827, C.E.P.R. Discussion Papers.
- Ludema, R.D., 1990.
"Optimal International Trade Agreements And Dispute Settlement Procedures,"
UWO Department of Economics Working Papers
9101, University of Western Ontario, Department of Economics.
- Ludema, Rodney D., 2001. "Optimal international trade agreements and dispute settlement procedures," European Journal of Political Economy, Elsevier, vol. 17(2), pages 355-376, June.
- Butler, M. & Hauser, H., 2000.
"The WTO Dispute Settlement System: A First Assessment from an Economic Perspective,"
2000-21, Tilburg University, Center for Economic Research.
- Butler, Monika & Hauser, Heinz, 2000. "The WTO Dispute Settlement System: First Assessment from an Economic Perspective," Journal of Law, Economics and Organization, Oxford University Press, vol. 16(2), pages 503-33, October.
- Monika BÜTLER & Heinz HAUSER, 2000. "The WTO Dispute Settlement System : A First Assessment from an Economic Perspective," Cahiers de Recherches Economiques du DÃ©partement d'EconomÃ©trie et d'Economie politique (DEEP) 00.02, Université de Lausanne, Faculté des HEC, DEEP.
- Kym Anderson, 2002.
"Pecularities of Retaliation in WTO Dispute Settlement,"
Centre for International Economic Studies Working Papers
2002-07, University of Adelaide, Centre for International Economic Studies.
- Anderson, Kym, 2002. "Peculiarities of retaliation in WTO dispute settlement," World Trade Review, Cambridge University Press, vol. 1(02), pages 123-134, July.
- Anderson, Kym, 2002. "Peculiarities of Retaliation in WTO Dispute Settlement," CEPR Discussion Papers 3578, C.E.P.R. Discussion Papers.
- Pao-Li Chang, 2002.
"The Evolution and Utilization of the GATT/WTO Dispute Settlement Mechanism,"
475, Research Seminar in International Economics, University of Michigan.
- Pao-li Chang, 2007. "The Evolution and Utilization of the GATT/WTO Dispute Settlement Mechanism," Trade Working Papers 22062, East Asian Bureau of Economic Research.
- Wilfred J. Ethier, . "Punishment and Dispute Settlement in Trade Agreements," EPRU Working Paper Series 01-14, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Dan Kovenock & Marie Thursby, 1992.
"Gatt, Dispute Settlement And Cooperation,"
Economics and Politics,
Wiley Blackwell, vol. 4(2), pages 151-170, 07.
- Hungerford, Thomas L., 1991. "GATT: A cooperative equilibrium in a noncooperative trading regime?," Journal of International Economics, Elsevier, vol. 31(3-4), pages 357-369, November.
- Giovanni Maggi, 1999. "The Role of Multilateral Institutions in International Trade Cooperation," American Economic Review, American Economic Association, vol. 89(1), pages 190-214, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (QL THor).
If references are entirely missing, you can add them using this form.