Title
Cooperation in the shadow of WTO law : why litigate when you can negotiate Cooperation in the shadow of WTO law : why litigate when you can negotiate
Author
Faculty/Department
Faculty of Social Sciences. Political Sciences
Publication type
article
Publication
Cambridge ,
Subject
Politics
Economics
Law
Source (journal)
World trade review / World Trade Organization. - Cambridge, 2002, currens
Volume/pages
14(2015) :S1 , p. S33-S58
ISSN
1474-7456
ISI
000357672300003
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
Abstract
In the current multilateral trade regime, members often negotiate under the shadow of WTO law. This article develops a formal explanation of the way in which the credible threat to resort to and the actual use of WTO litigation can influence multilateral trade negotiations. We contend that the ability to impose costs on a defendant by way of litigation increases the complainant's bargaining power, opening a bargaining window and ultimately increasing the chances for cooperation in multilateral trade negotiations. On the other hand, the complainant's preference for loss-mitigation over gains from retaliation and its expectations about the likelihood that the defendant will not comply with an adverse ruling can augment the defendant's bargaining leverage. Thus, contrary to conventional wisdom, increased enforcement does not necessarily make actors shy away from further cooperation, although the credibility of the defendant's non-compliant threats crucially affects the location of any potential negotiated agreement. Empirically, we show that the argument can account for how Brazil, a potential complainant, and the EU and the US, two potential defendants, approached and bargained agricultural negotiations in the Doha Round.
E-info
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https://repository.uantwerpen.be/docman/iruaauth/60163c/722127120.pdf
Full text (open access)
https://repository.uantwerpen.be/docman/irua/3b1480/bc577905.pdf
Handle