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Does WTO Dispute Settlement Enforce or Inform?

Author

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  • Sattler, Thomas
  • Spilker, Gabriele
  • Bernauer, Thomas

Abstract

Whereas some researchers emphasize how World Trade Organization (WTO) dispute settlement reduces complexity and clarifies legislation, others argue that dispute rulings promote co-operation by providing an enforcement mechanism. This article identifies empirical implications from these distinct arguments and tests them on WTO disputes from 1995 to 2006. The study's analytical approach combines a three-step coding of dispute escalation with a strategic bargaining model and statistical backwards induction to account for governments’ forward-looking behavior. It finds strong support for the argument that WTO dispute settlement primarily serves as an enforcement device. It finds much less support for the argument that dispute settlement reduces complexity and clarifies trade law. These results suggest that the role of WTO dispute settlement in generating information on acceptable trade policy standards is less relevant than proponents of the complexity argument tend to assume.

Suggested Citation

  • Sattler, Thomas & Spilker, Gabriele & Bernauer, Thomas, 2014. "Does WTO Dispute Settlement Enforce or Inform?," British Journal of Political Science, Cambridge University Press, vol. 44(4), pages 877-902, October.
  • Handle: RePEc:cup:bjposi:v:44:y:2014:i:04:p:877-902_00
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    Cited by:

    1. Thiemo Fetzer & Carlo Schwarz, 2021. "Tariffs and Politics: Evidence from Trump’s Trade Wars," The Economic Journal, Royal Economic Society, vol. 131(636), pages 1717-1741.
    2. Soo Yeon Kim & Gabriele Spilker, 2019. "Global value chains and the political economy of WTO disputes," The Review of International Organizations, Springer, vol. 14(2), pages 239-260, June.
    3. Aigul Nukusheva & Guldana Karzhassova & Dinara Rustembekova & Tatyana Au & Kulbagila Baikenzhina, 2021. "International nuclear energy legal regulation: comparing the experience of the EU and the CIS countries," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 21(4), pages 647-667, December.
    4. Aydin B. Yildirim & J. Tyson Chatagnier & Arlo Poletti & Dirk De Bièvre, 2018. "The internationalization of production and the politics of compliance in WTO disputes," The Review of International Organizations, Springer, vol. 13(1), pages 49-75, March.
    5. Emile van Ommeren & Arlo Poletti & Dirk De Bièvre, 2021. "The European Union and the political economy of enforcing international trade rules," European Union Politics, , vol. 22(3), pages 377-400, September.

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