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The strategic calculus of WTO dispute initiation: evidence from the United States

In: Research Handbook on Trade Wars

Author

Listed:
  • J. Tyson Chatagnier
  • Arlo Poletti
  • Aydin B. Yildirim

Abstract

What determines states' decision to use international litigation to challenge potential violations of World Trade Organization (WTO) rules? In the face of growing number of foreign trade barriers and limited resources, states must take into account a number of factors before resorting to inter-state litigation at the WTO. Such considerations involve a complex litigation strategy from officials that act as gate keepers to initiate disputes at the WTO's dispute settlement mechanism. Using expanded data that include the universe of potential disputes for the United States (U.S.) between 1995 and 2012, we examine the degree to which strategic concerns influence both the decision of the U.S. to launch a dispute and the decision of the partner state to acquiesce or stand firm. We find evidence that the US takes into account the likelihood of both favorable judgments from the WTO and compliance by the defendant in deciding whether to challenge a trade barrier formally.

Suggested Citation

  • J. Tyson Chatagnier & Arlo Poletti & Aydin B. Yildirim, 2022. "The strategic calculus of WTO dispute initiation: evidence from the United States," Chapters, in: Ka Zeng & Wei Liang (ed.), Research Handbook on Trade Wars, chapter 10, pages 191-208, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:19694_10
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