Tariff retaliation versus financial compensation in the enforcement of international trade agreements
Nuno Limão and
Kamal Saggi ()
Chapter 13 in Economic Analysis of the Rules and Regulations of the World Trade Organization, 2018, pp 299-311 from World Scientific Publishing Co. Pte. Ltd.
Abstract:
We analyze whether financial compensation is preferable to the WTO’s current dispute settlement system that permits injured member countries to impose retaliatory tariffs. We show that, ex-post, monetary fines are more efficient than tariffs in terms of granting compensation to injured parties but fines suffer from an enforcement problem since they must be paid by the violating country. If fines must ultimately be supported by the threat of tariffs, they fail to yield a more cooperative outcome than the use of tariffs alone. Furthermore, the exchange of bonds between symmetric countries also does not improve enforcement relative to retaliatory tariffs.
Keywords: Multilateral Trading System; Trade Agreements; Trade Liberalization; International Tariff Cooperation; WTO Disputes; Case Studies (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:
Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789813233058_0013 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789813233058_0013 (text/html)
Ebook Access is available upon purchase.
Related works:
Chapter: Tariff retaliation versus financial compensation in the enforcement of international trade agreements (2018) 
Journal Article: Tariff retaliation versus financial compensation in the enforcement of international trade agreements (2008) 
Working Paper: Tariff Retaliation versus Financial Compensation in the Enforcement of International Trade Agreements (2006) 
Working Paper: Tariff retaliation versus financial compensation in the enforcement of international trade agreements (2006) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789813233058_0013
Ordering information: This item can be ordered from
Access Statistics for this chapter
More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().