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Pecularities of Retaliation in WTO Dispute Settlement

Author

Listed:
  • Kym Anderson

    (School of Economics, University of Adelaide, Australia)

Abstract

The dispute resolution procedures of the World Trade Organization allow sanctions to be imposed when a country is unwilling to bring a WTO-inconsistent trade measure into conformity. Apart from the fact that the procedure for triggering the retaliation process has ambiguities that need to be removed, the retaliation itself has some undesirable economic features. This paper looks at why compensation is not preferred to retaliation and then examines five economic features of the temporary trade retaliation that WTO may permit under certain conditions. Both efficiency and equity concerns are raised. The paper concludes with some suggestions for reforming this part of WTO dispute resolution during the review of the Dispute Settlement Understanding that is due to be completed by May 2003.

Suggested Citation

  • Kym Anderson, 2002. "Pecularities of Retaliation in WTO Dispute Settlement," Centre for International Economic Studies Working Papers 2002-07, University of Adelaide, Centre for International Economic Studies.
    • Handle: RePEc:adl:cieswp:2002-07
    as

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    File URL: http://www.adelaide.edu.au/cies/papers/0207.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    WTO; Dispute settlement; Compensation; Retaliation;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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