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Determinants of Bilateral Food Related Disputes

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  • Goetz, Christian
  • Heckelei, Thomas

Abstract

This paper analyses relevant determinants for the probability to initiate a dispute on policy measures under the World Trade Organization (WTO) Dispute Settlement Mechanism (DSM). The empirical analysis focuses on agrofood related disputes to provide sector specific information on the driving factors in dispute settlement, and complements and extends previous studies by incorporating new potential determinants. The focus is shifted to bilaterally dependent characteristics to take care of trade related and power based relationships between Members, such as relevance of the defendant’s market and the complainant’s trade related retaliation capacity. Contrary to recent analyses of overall trade disputes, the results show that capacity-related determinants such as financial means and legal capacity and simple trade-related characteristics like export and import volume do not show a statistically significant impact on dispute initiation in the agro-food sector. However, the level of protectionism that Members face in their export markets, their operating experience with the DSM, the influence of private sector interests, complainants’ agrofood related export dependency as well as the size of their agro-food imports from the defendant party could be identified as relevant determinants of dispute initiation behavior.
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Suggested Citation

  • Goetz, Christian & Heckelei, Thomas, 2010. "Determinants of Bilateral Food Related Disputes," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61773, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61773
    DOI: 10.22004/ag.econ.61773
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    References listed on IDEAS

    as
    1. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, January.
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    3. Götz, Christian & Heckelei, Thomas & Rudloff, Bettina, 2010. "What makes countries initiate WTO disputes on food-related issues?," Food Policy, Elsevier, vol. 35(2), pages 154-162, April.
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    7. Horn, Henrik & Mavroidis, Petros C & Nordström, Håkan, 1999. "Is The Use Of The WTO Dispute Settlement System Biased?," CEPR Discussion Papers 2340, C.E.P.R. Discussion Papers.
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    More about this item

    Keywords

    Food Consumption/Nutrition/Food Safety;

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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