The Law, Economics and Politics of Retaliation in WTO Dispute Settlement (Cambridge International Trade and Economic Law)

693 Pages·2010·6.16 MB·English

by  Chad P. Bown

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cambridge international trade
and economic law
As the processes of regionalisation and globalisation have intensified,
there have been accompanying increases in the regulations of inter­
national trade and economic law at the levels of international, regional
and national laws.
The subject matter of this series is international economic law. Its core
is the regulation of international trade, investment and cognate areas
such as intellectual property and competition policy. The series publishes
books on related regulatory areas, in particular human rights, labour,
environment and culture, as well as sustainable development. These areas
are vertically linked at the international, regional and national level, and
the series extends to the implementation of these rules at these different
levels. The series also includes works on governance, dealing with the
structure and operation of related international organisations in the field
of international economic law, and the way they interact with other sub­
jects of international and national law.
Series editors:
Dr Lorand Bartels, University of Cambridge
Professor Thomas Cottier, University of Berne
Professor William Davey, University of Illinois
Books in the series:
Trade Policy Flexibility and Enforcement in the WTO: A Law and
Economics Analysis
Simon A. B. Schropp
The Multilaterization of International Investment Law
Stephan W. Schill
The Law, Economics and Politics of Retaliation in WTO Dispute
Settlement
Edited by Chad P. Bown and Joost Pauwelyn

ThE LAW, EConomICS AnD
PoLITICS of RETALIATIon In
WTo DISPuTE SETTLEmEnT
Edited by
ChAD P. BoWn
JooST PAuWELyn
CAMBRIDGE UNIVERSITY PRESS
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© Cambridge University Press 2010
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may take place without the written permission of Cambridge University Press.
First published in print format 2010
ISBN-13 978-0-511-67526-3 eBook (NetLibrary)
ISBN-13 978-0-521-11997-9 Hardback
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and does not guarantee that any content on such websites is, or will remain,
accurate or appropriate.
ConTE nTS
List of tables and figures i x
Contributors x i
Introduction: trade retaliation in WTo dispute settlement: a
multi­disciplinary analysis 1
chad p. bown and joost pauwelyn
part i Background and goal(s) of WTO retaliation 21
1 The nature of WTo arbitrations on retaliation 2 3
giorgio sacerdoti
2 The calculation and design of trade retaliation in
context: what is the goal of suspending WTo obligations? 3 4
joost pauwelyn
Comment on chapter 2 6 6
john h. jackson
Comment on chapter 2 7 0
alan o. sykes
3 Extrapolating purpose from practice: rebalancing or inducing
compliance 7 3
gregory shaffer and daniel ganin
part ii A legal assessment after ten arbitration
disputes 87
4 The law of permissible WTo retaliation 8 9
thomas sebastian
v
vi Contents
Comment on chapter 4 12 8
nicolas lockhart
5 from Bananas to Byrd: damage calculation coming of age? 13 5
yves renouf
part iii An economic assessment after ten
arbitration disputes 14 7
6 The economics of permissible WTo retaliation 149
chad p. bown and michele ruta
Comment on chapter 6 19 4
l. alan winters
7 Sticking to the rules: quantifying the market access
that is potentially protected by WTo­sanctioned trade
retaliation 19 8
simon j. evenett
part iv The domestic politics and procedures
for implementing trade retaliation 23 3
8 The united States’ experience and practice in suspending WTo
obligations 235
scott d. andersen and justine blanchet
9 The European Community’s experience and practice in
suspending WTo obligations 244
lothar ehring
10 The politics of selecting trade retaliation in the European
Community: a view from the floor 267
håkan nordström
11 Canada’s experience and practice in suspending WTo
obligations 277
vasken khabayan
12 Is retaliation useful? observations and analysis of mexico’s
experience 28 1
jorge a. huerta­goldman
Contents vii
13 Procedures for the design and implementation of trade
retaliation in Brazil 29 7
luiz eduardo salles
14 Retaliation in the WTo: the experience of Antigua and
Barbuda in US–Gambling 31 0
mark e. mendel
part v Problems and options for reform 31 7
15 Evaluating the criticism that WTo retaliation rules
undermine the utility of WTo dispute settlement for
developing countries 31 9
hunter nottage
16 optimal sanctions in the WTo: the case for decoupling
(and the uneasy case for the status quo) 33 9
alan o. sykes
Comment on chapter 16 35 5
petros c. mavroidis
17 Sanctions in the WTo: problems and solutions 36 0
william j. davey
18 WTo retaliatory measures: the case for multilateral regulation
of the domestic decision­ making process 37 3
reto malacrida
19 The WTo Secretariat and the role of economics in panels
and arbitrations 391
chad p. bown
Comment on chapter 19 43 4
reto malacrida
20 The equivalence standard under Article 22.4 of the DSu: a ‘tariffic’
misunderstanding? 44 6
simon schropp
Comment on chapter 20 50 3
fritz breuss
viii Contents
part vi New frontiers and lessons from other
fields 513
21 Cross­retaliation and suspension under the GATS and TRIPS
agreements 51 5
werner zdouc
22 Cross­retaliation in TRIPS: issues of law and practice 53 6
frederick m. abbott
23 Preliminary thoughts on WTo retaliation in the services
sector 58 9
arthur e. appleton
24 Compensation assessments: perspectives from investment
arbitration 62 3
gabrielle kaufmann­kohler
25 Reforming WTo retaliation: any lessons from
competition law? 64 1
simon j. evenett
Index 64 8