Abstract
International trade policy has been shifting from diplomacy-based initiatives to law-based initiatives, as signified by the unprecedented creation and subsequent use of the dispute settlement mechanism in the World Trade Organization (WTO). While growing scholarship offers political explanations for this recent phenomenon, few have emphasized the state factor to explain why countries choose to use the WTO dispute settlement mechanism.
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Notes
The WTO dispute settlement system is not an enforcement body. The members have to rely on self-enforcement in complying with WTO rulings. However, it has been proven that nations take them into account more frequently when enacting, implementing, and interpreting domestic laws and regulations. See Paul B. Stephen, “American Hegemony and International Law: Sheriff or Prisoner? The United States and the World Trade Organization”, Chicago Journal of International Law 1 (2000, spring): 49–74.
Robert Hudec, “Transcending the Ostensible: Some Reflections on the Nature of Litigation between Governments”, Minnesota Law Review 72 (1987): 224.
Robert Hudec, “The New WTO Dispute Settlement Procedure: An Overview of the First Three Years”, Minnesota Journal of Foreign Trade 8, no. 1 (1999): 8.
Wilfred J. Ethier, Punishments and Dispute Settlement in Trade Agreements, Economic Policy Research Unit (EPRU) Discussion Paper No. 2001-14, University of Copenhagen, 2001.
Christina R. Sevilla, Explaining Patterns of GATT/WTO Trade Complaints, Working Paper 98/1, Weatherhead Center for International Affairs, Harvard University, 1998.
Christina R. Sevilla, A Political Economy Model of GATT/WTO Trade Complaints, Jean Monnet Working Paper No. 5/97, New York University School of Law, 1997.
Giovanni Maggi, “The Role of Multilateral Institutions in International Trade Co-operation”, American Economic Review 89, no. 1 (1999): 190–214.
Kyle Bagwell and Robert W. Staiger, “An Economic Theory of GATT”, American Economic Review 89, no. 1 (1999): 215–248.
Keisuke Iida, “Is WTO Dispute Settlement Effective?” Global Governance 10 (2004), 207–25.
According to the DSU timeline, it takes up to 26 months for a diligent complainant from the time of requesting consultation to obtain the removal of measures inconsistent with the WTO. In reality, this timeline is often exceeded. A survey on DSB cases from 1995 to 2004 found that the median time from the request for consultations to implementation was 34 months. For more information, see William J. Davey, “The WTO Dispute Settlement System: The First Ten Years”, Journal of Internal Economic Law (March 2005) 8 (1): 17–50.
Marc L. Busch and Eric Reinhardt, “Testing International Trade Law: Empirical Studies of GATT/WTO Dispute Settlement”, in Daniel M. Kennedy and D. James Southwick eds., The Political Economy of International Trade Law: Essays in Honor of Robert Hudec (New York: Cambridge University Press, 2002): 457–81.
Henrik Horn, Petros C. Mavroidis, and Håkan Nordstrom, “Is the Use of the WTO Dispute Settlement System Biased?” Economic Research and Analysis Division, WTO Centre for Economic Policy Research (1999)
Joseph Francois, Henrik Horn, and Niklas Kaunitz, “Trading Profiles and Developing Country Participation in the WTO Dispute Settlement System”, IFN Working Paper No. 730, Research Institute of Industrial Economics (2008).
Chad P. Bown, “Developing Countries as Plaintiffs and Defendants in GATT/WTO Trade Disputes”, The World Economy 27, no. 1 (2004): 59–80.
Chad P. Bown, “U.S.-China Trade Conflicts and the Future of the WTO”, The Fletcher Forum of World Trade 33, no. 1 (Winter/Spring 2009): 27–48.
Mohammad Ali Taslim, “How the DSU Worked for Bangladesh: The First Least Developed Country to Bring a WTO Claim”, Gregory C. Shaffer and Ricardo Meléndez-Ortiz eds., Dispute Settlement at the WTO: The Developing Country Experience, Cambridge University Press (2012): 230–48.
Chad P. Bown, “The Economics of Trade Disputes, the GATT’s Article XXIII and the WTO Dispute Settlement Understanding”, Economics and Politics 14, no. 3 (2002): 283–23.
James Smith, “Inequality in International Trade? Developing Countries and Institutional Change in WTO Dispute Settlement”, Review of International Political Economy 11, no. 3 (August 2004): 542–73.
Marc L. Busch and Eric Reinhardt, “Developing Countries and GATT/WTO Dispute Settlement”, Journal of World Trade 37 (2003): 719–35.
Bruce A. Blonigen and Chad P. Bown, “Antidumping and Retaliation Threats”, Working Paper 8576, National Bureau of Economic Research (2001); Chad P. Bown, Self-Enforcing Trade: Developing Countries and WTO Dispute Settlement (Washington, DC: Brookings Institute, 2006).
Chad P. Bown, “Participation in WTO Dispute Settlement: Complainants, Interested Parties and Free Riders”, World Bank Economic Review 19, no. 2 (2005): 287–310.
Valentina Delich, “Developing Countries and the WTO Dispute Settlement System”, in Bernard Hoekman, Aaditya Matoo, and Philip English eds., Development, Trade, and the WTO (Washington, DC: The World Bank, 2002): 71–80.
Andrew Guzman and Beth Simmons, “To Settle or Empanel? An Empirical Analysis of Litigation and Settlement at the World Trade Organization”, Journal of Legal Studies 31 (2005): 205–35.
Constantine Michalopoulos, Developing Countries in the WTO (New York: Palgrave, 2001).
Marc L. Busch and Eric Reinhardt, “Testing International Trade Law: Empirical Studies of GATT/WTO Dispute Settlement”, in Daniel M. Kennedy and James D. Southwick eds., The Political Economy of International Trade Law: Essays in Honor of Robert Hudec (New York: Cambridge University Press, 2002): 457–81.
Christina L. Davis, Why Adjudicate? Enforcing Trade Rules in the WTO (Princeton: Princeton University Press, 2010), p. 69.
Marc Busch, “Democracy, Consultation, and the Paneling of Disputes under GATT”, Journal of Conflict Resolution 44, no. 4 (2000): 425–46.
Peter Rosendorff, “Stability and Rigidity: Politics and Design of the WTO’s Dispute Settlement Procedure”, American Political Science Review 99, no. 3 (2005): 389–400; Eric Reinhardt, “Aggressive Multilateralism: The Determinants of GATT/WTO Dispute Initiation, 1948–1998”, Manuscript, Emory University, 2000.
Thomas Sattler and Thomas Bernauer, “Dispute Initiation in the World Trade Organization”, paper presented at the annual meeting of the International Political Economy Society (Stanford University, Palo Alto, California, 2007).
Saadia Pekkanen, Japan’s Aggressive Legalism: Law and Foreign Trade Politics Beyond the WTO (Palo Alto: Stanford University Press, 2008): pp. 28–31.
The disputes of this kind are in part caused by the current WTO rules grant substantial degree of discretion to the importing countries to judge the act of dumping. For more details, see Thomas J. Prusa, “Anti-dumping: A Growing Problem in International Trade”, The World Economy, Vol. 28(5) (May 2005): 683–700.
Thomas J. Prusa, “On the Spread and Impact of Antidumping”, Canadian Journal of Economics, 34, no. 3 (2001): 591–611.
Thomas J. Prusa, “East Asia’s Anti-Dumping Problem”, The World Economy 29, no. 6 (June 2006): 743–761.
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© 2016 Jessica Chia-yueh Liao
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Liao, J.Cy. (2016). Introduction. In: Developmental States and Business Activism. International Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137489562_1
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DOI: https://doi.org/10.1057/9781137489562_1
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