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To AB or Not to AB? Dispute Settlement in WTO Reform

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  • Bernard M. Hoekman
  • Petros C. Mavroidis

Abstract

Recent debates on the operation of the WTO’s dispute resolution mechanism have focused primarily on the Appellate Body (AB). We argue that this neglects the first-order issue confronting the rules-based trading system: sustaining the principle of de-politicized dispute resolution that is reflected in the negative consensus rules for adoption of findings by trade dispute adjudicators. The existence of the AB is not material in this regard. Improving the quality of the panel process, complemented by reforms to WTO working practices that reduce incentives to resort to formal dispute settlement, can resolve the main issues that led to the AB crisis. An effective, coherent and consistent system of WTO dispute resolution need not include an AB.

Suggested Citation

  • Bernard M. Hoekman & Petros C. Mavroidis, 2020. "To AB or Not to AB? Dispute Settlement in WTO Reform," RSCAS Working Papers 2020/34, European University Institute.
    • Handle: RePEc:rsc:rsceui:2020/34
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    References listed on IDEAS

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    1. Johannesson, Louise & Mavroidis, Petros C., 2017. "The WTO Dispute Settlement System 1995-2015: A Data Set and its Descriptive Statistics," Working Paper Series 1148, Research Institute of Industrial Economics.
    2. Wolfe, Robert, 2015. "First Diagnose, Then Treat: What Ails the Doha Round?," World Trade Review, Cambridge University Press, vol. 14(1), pages 7-28, January.
    3. Richard Baldwin, 2016. "The World Trade Organization and the Future of Multilateralism," Journal of Economic Perspectives, American Economic Association, vol. 30(1), pages 95-116, Winter.
    4. Hoekman, Bernard M. & Kostecki, Michel M., 2009. "The Political Economy of the World Trading System," OUP Catalogue, Oxford University Press, edition 3, number 9780199553778, Decembrie.
    5. Schwartz, Warren F & Sykes, Alan O, 2002. "The Economic Structure of Renegotiation and Dispute Resolution in the World Trade Organization," The Journal of Legal Studies, University of Chicago Press, vol. 31(1), pages 179-204, January.
    6. Bernard M. Hoekman & Petros C. Mavroidis, 2020. "Preventing the Bad from Getting Worse: The End of the World (Trade Organization) As We Know it?," RSCAS Working Papers 2020/06, European University Institute.
    7. Karttunen,Marianna B., 2020. "Transparency in the WTO SPS and TBT Agreements," Cambridge Books, Cambridge University Press, number 9781108486453.
    8. Louise Johannesson & Petros C. Mavroidis, 2016. "The WTO Dispute Settlement System 1995-2016: A Data Set and its Descriptive Statistics," RSCAS Working Papers 2016/72, European University Institute.
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    Cited by:

    1. Nisha Taneja & Prateek Kukreja & Kishika Mahajan, 2012. "Formulating New Approaches to Strengthen Multilateral Trading System," Indian Council for Research on International Economic Relations (ICRIER) Policy Paper 09, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.
    2. Bernard Hoekman & Xinquan Tu & Robert Wolfe, 2022. "China and WTO Reform," RSCAS Working Papers 2022/59, European University Institute.
    3. Bernard Hoekman & Robert Wolfe, 2021. "Reforming the World Trade Organization: Practitioner Perspectives from China, the EU, and the US," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(4), pages 1-34, July.
    4. Bernard Hoekman & Robert Wolfe, 2021. "WTO Reform As a Triangular Problem among China, the EU and the US," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 22(02), pages 12-16, March.

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    More about this item

    Keywords

    trade disputes; adjudication; Appellate Body; panels; WTO reform;
    All these keywords.

    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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