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WTO Dispute Settlement Design and Developing Countries

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Abstract:

It has long been observed that developing countries made scant use of dispute set-tlement under the General Agreement on Tariffs and Trade (GATT). Less clear are the reasons for this. Most observers insist that the various GATT reforms to help developing countries failed to insulate them from the “power politics” of the system (Kuruvila 1997). Not surprisingly, many of these same observers predict that the greater “legalism” of the World Trade Organization (WTO), and the Dispute Settlement Understanding (DSU), in particular, will encourage more participation by developing countries. We dissent from this view, arguing that a lack of legal capacity hampers the ability of poorer complainants to make the most of the reforms ushered in by the DSU, in relation to their wealthier complaiants. We find, in particular, that developing countries fail to settle early, unlike developed countries, and trace this to their lack of legal capacity. Implications for disptue settlement reform in the Doha Development Round are spelled out.

Most Common Document Word Stems:

wto (106), complain (92), disput (89), develop (85), case (70), countri (67), 1 (59), gatt (57), defend (57), settlement (56), rule (56), concess (43), legal (40), 2000 (35), trade (34), panel (34), 0 (32), model (31), law (30), 2 (28), per (28),

Author's Keywords:

WTO; dispute settlement; developing countries
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Name: American Political Science Association
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MLA Citation:

Busch, Marc. "WTO Dispute Settlement Design and Developing Countries" Paper presented at the annual meeting of the American Political Science Association, Philadelphia Marriott Hotel, Philadelphia, PA, Aug 27, 2003 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p64311_index.html>

APA Citation:

Busch, M. , 2003-08-27 "WTO Dispute Settlement Design and Developing Countries" Paper presented at the annual meeting of the American Political Science Association, Philadelphia Marriott Hotel, Philadelphia, PA Online <.PDF>. 2009-05-26 from http://www.allacademic.com/meta/p64311_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: It has long been observed that developing countries made scant use of dispute set-tlement under the General Agreement on Tariffs and Trade (GATT). Less clear are the reasons for this. Most observers insist that the various GATT reforms to help developing countries failed to insulate them from the “power politics” of the system (Kuruvila 1997). Not surprisingly, many of these same observers predict that the greater “legalism” of the World Trade Organization (WTO), and the Dispute Settlement Understanding (DSU), in particular, will encourage more participation by developing countries. We dissent from this view, arguing that a lack of legal capacity hampers the ability of poorer complainants to make the most of the reforms ushered in by the DSU, in relation to their wealthier complaiants. We find, in particular, that developing countries fail to settle early, unlike developed countries, and trace this to their lack of legal capacity. Implications for disptue settlement reform in the Doha Development Round are spelled out.

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Associated Document Available American Political Science Association
Associated Document Available Political Research Online

Document Type: .pdf
Page count: 29
Word count: 8393
Text sample:
Developing Countries and GATT/WTO Dispute Settlement Marc L. Busch† and Eric Reinhardt‡ Forthcoming in Journal of World Trade † Associate Professor Queen’s School of Business Queen’s University Kingston On- tario K7L 3N6 Canada mbusch@business.queensu.ca ‡ Assistant Professor Department of Political Science Emory University Atlanta Geor- gia 30322 USA erein@emory.edu For comments we thank Karen Alter Howard Chang Bill Davey Andrew Guzman Rob Howse Petros C. Mavroidis Beth Simmons Richard Steinberg and seminar participants at the Advisory Centre on WTO
0.530 -0.534 0.523 Number of Obser- 154 41 vations Model χ 2 16.03* 8 d.o.f. 21.50** 7 d.o.f. Pseudo- R 2 0.09 0.12 Percent Correctly 69.5 73.2 Predicted * denotes one-tailed p < 0.05 ; ** p < 0.01 . Per capita income and GDP figures in logs. Robust standard errors clustered across dyads. 10 All but three of this subsample of 41 cases meet our definition of “multilateral.” Because it varies so lit- tle we accordingly exclude Multilateral


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