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A Renegotiation Perspective on Transatlantic Trade Disputes

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  • 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.

Suggested Citation

  • 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.
  • Handle: RePEc:usg:dp2002:2002-09
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Dispute settlement; WTO; non-compliance; trade wars; renegotiation; flexibility; incomplete contracting;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law

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