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AA00260492-20050001-0001.pdf
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:Dec 16, 2009 |
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Title |
Title |
Punishments and dispute settlement in trade agreements : the equivalent withdrawal of concessions
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Ethier, Wilfred J.
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Department of Economics, University of Pennsylvania, Philadelphia, USA
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Keio Economic Society, Keio University
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2005
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Keio economic studies
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42
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Issue |
1/2
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2005
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1
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End page |
23
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Abstract |
I interpret dispute settlement procedures and the principle of equivalent withdrawal ofconcessions as responses to the fact that trade agreements are incomplete contracts. With no adjudication phase and the degree of trade relatedness known with certainty, an agreement will feature commensurate punishments, will induce violation of the dispute settlement ruling, and will deliver optimal liberalization and optimal unilateral trade-related action. With an adjudication phase, the agreement will feature less liberalization, but still presumably approximate commensurate punishment. The agreement will likely induce abiding by the ruling when negotiators attach more importance
to the adjudication phase, and violating it when they attach less.
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Keyword |
Substantially Equivalent Withdrawal Of Concessions
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Note |
Special issue in honor of Prpfessor Michihiro Ohyama
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