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The Evolution and Utilization of the GATT/WTO Dispute

Author

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  • Pao-Li Chang

    (School of Economics, Singapore Management University)

Abstract

This paper provides a theoretical framework of dispute settlement to explain the surge in blocking incidence of GATT panel reports during the 1980s and the variations in withdrawn incidence versus total disputes across di®erent decades of the GATT regime. The study first suggests the role of the degree of legal controversy over a panel ruling in determining countries' incentives to block (appeal) a panel report under the GATT (WTO) regime. The study then analyzes the effects of political power on countries' incentives to use, and their interactions in using, the dispute settlement mechanism, when two-sided asymmetric information exists regarding panel judgement.

Suggested Citation

  • Pao-Li Chang, 2007. "The Evolution and Utilization of the GATT/WTO Dispute," Working Papers 21-2007, Singapore Management University, School of Economics.
    • Handle: RePEc:siu:wpaper:21-2007
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    File URL: https://mercury.smu.edu.sg/rsrchpubupload/10416/wto5.pdf
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    More about this item

    Keywords

    dispute settlement; legal controversy; block; appeal; two-sided asymmetric information; political cost;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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