Publication Type

Working Paper

Version

publishedVersion

Publication Date

7-2007

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settlement to explain the surge in blocking incidence of GATT panel reports during the 1980s and the variations in withdrawn incidence versus total disputes across different decades of the GATT regime.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 judgment.

Keywords

Dispute settlement, legal controversy, block, appeal, two-sided asymmetric information, political cost

Discipline

Dispute Resolution and Arbitration | International Business | International Economics

Research Areas

International Economics

First Page

1

Last Page

30

Publisher

SMU Economics and Statistics Working Paper Series, No. 21-2007

City or Country

Singapore

Copyright Owner and License

Authors

Comments

Published in Trade Disputes and the Dispute Settlement Understanding of the WTO: An Interdisciplinary Assessment. 2009. Bingley: Emerald, pp.91-118. https://doi.org/10.1108/S1574-8715(2009)0000006007

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