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A Renegotiation Perspective on Transatlantic Trade Disputes

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Author Info
Heinz Hauser ()
Alexander Roitinger ()
Abstract

Transatlantic trade disputes seem to be a rising concern. According to the most critical voices, they provoke notable "trade wars" and crucially impair the credibility of the WTO dispute settlement mechanism. In this paper, we suggest that such conclusions are unwarranted. Violation of WTO agreements and non-compliance with Dispute Settlement Body rulings should be considered as an instrument for renegotiation with unique features, providing indispensable flexibility to the world trading system. Such flexibility is necessary because of incomplete contracting and "local" lack of commitment at the time of concluding agreements.

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File URL: http://www.vwa.unisg.ch/RePEc/usg/dp2002/dp0209hauser_roitinger_ganz.pdf
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Paper provided by Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2002 with number 2002-09.

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Length: 39 pages
Date of creation: Apr 2002
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Handle: RePEc:usg:dp2002:2002-09

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Related research
Keywords: Dispute settlement; WTO; non-compliance; trade wars; renegotiation; flexibility; incomplete contracting;

Find related papers by JEL classification:
F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law

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References listed on IDEAS
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.:
  1. W. Abbott, Kenneth & Snidal, Duncan, 2000. "Hard and Soft Law in International Governance," International Organization, Cambridge University Press, vol. 54(03), pages 421-456, August. [Downloadable!]
  2. Salas, Mauricio & Jackson, John H, 2000. "Procedural Overview of the WTO EC-Banana Dispute," Journal of International Economic Law, Oxford University Press, vol. 3(1), pages 145-66, March.
  3. Monika BÜTLER & Heinz HAUSER, 2000. "The WTO Dispute Settlement System : A First Assessment from an Economic Perspective," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 00.02, Université de Lausanne, Faculté des HEC, DEEP. [Downloadable!]
    Other versions:
  4. Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 21-92, Tel Aviv.
    Other versions:
  5. Markus Paukku, 2000. "European Union and United States trade relations," Discussion Papers 723, The Research Institute of the Finnish Economy. [Downloadable!]
  6. Abbott, Kenneth W & Snidal, Duncan, 2000. "Hard and Soft Law in International Governance," International Organization, MIT Press, vol. 54(3), pages 421-56, Summer.
  7. Dan Kovenock & Marie Thursby, 1992. "GATT, Dispute Settlement and Cooperation," NBER Working Papers 4071, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Koremenos, Barbara & Lipson, Charles & Snidal, Duncan, 2001. "The Rational Design of International Institutions," International Organization, Cambridge University Press, vol. 55(04), pages 761-799, November. [Downloadable!]
  9. B. Peter Rosendorff & Helen V. Milner, 2001. "The Optimal Design of International Trade Institutions: Uncertainty and Escape," International Organization, MIT Press, vol. 55(4), pages 829-857, October. [Downloadable!] (restricted)
    Other versions:
  10. 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. [Downloadable!] (restricted)
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