The Politics of WTO Enforcement Mechanisms

Pao-Li Chang ()

No 117, Econometric Society 2004 Australasian Meetings from Econometric Society

Abstract: This paper analyzes the influence of domestic political considerations by disputing governments on the WTO enforcement outcome, following a violation ruling against the defendant. Since a different mix of import or export sectors in the disputing countries will benefit from the alternative enforcement outcomes – compliance, compensation, retaliation, and the status quo, they become competing forces that steer the strategic interactions between the disputing governments. This paper first studies the complainant’s retaliation capacity and strategy in formulating the retaliation list, and then examines the scope of settlement possibilities between the disputing parties. The results of the paper provide a synopsis of the disputing governments’ political payoffs under the alternative enforcement scenarios and the conditions that determine the outcome of the implementation

Keywords: trade sanction; enforcement failure; compliance; compensation; political economy (search for similar items in EconPapers)
JEL-codes: F13 K33 K42 (search for similar items in EconPapers)
Date: 2004-08-11
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Working Paper: The Politics of WTO Enforcement Mechanism (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:ecm:ausm04:117

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