Unravelling Factors Influencing the Mutually Agreed Solution in International Trade Disputes: An Empirical Exploration Based on WTO Disputes
-
Christina Siyu Tao
and
Qi Shen
Abstract
This study explores the factors influencing the achievement of a mutually agreed solution (MAS) in international trade disputes, drawing insights and patterns from the WTO dispute experience. Through an in-depth examination of prevailing literature and compliance theories, the research pinpoints various factors that impact the achievement of MAS in WTO disputes, including the dynamics of economic size, experience in WTO litigation, reputation as a respondent, and costs in time. The results, obtained through a probit model, reveal the significance of economic size in achieving MAS, where the complainant’s GDP surpasses that of the respondent but not the per capita GDP and trade ratio. Originally, this study discloses that experience in WTO litigation as a disputing party and reputation as the respondent also influence the willingness to settle amicably. While this research primarily centres on the WTO, its findings, derived from WTO data, have broader implications. The identified factors are not only pertinent to WTO members but also hold relevance for solving trade disputes between states. Recognizing these factors is crucial for policymakers across different trade platforms to devise strategies that bolster collaboration and elevate the efficacy of their respective dispute-resolution mechanisms. By illuminating the complexities of the decision-making processes in achieving MAS, this study offers invaluable insights. These insights are instrumental for all stakeholders involved in trade disputes, guiding them towards forging consensus-driven solutions that uphold the principles of just and balanced international trade.
© 2024 Walter de Gruyter GmbH, Berlin/Boston
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Articles in the same Issue
- Frontmatter
- Special Issue on ChatGPT; Guest Editor: Dennis Khong (Multimedia University)
- Digital Cloning of the Dead: Exploring the Optimal Default Rule
- Law and Economics of Language Model Development: Empirical Examination of Corporate Strategies and Vaporware Claims
- Catalyst for Common Law Evolution: Experiment with ChatGPT and a Hypothetical Common Law Jurisdiction
- AsLEA 2023 Annual Conference held in Academia Sinica, Taipei, Taiwan on Aug. 8-9; Edited by Kan-Hsueh Chiang (Erasmus University of Roterdam) and Jeong-Yoo Kim (Kyung Hee University)
- Posner Meets Hayek: The Elements of an Austrian Law & Economics Research Program
- Unravelling Factors Influencing the Mutually Agreed Solution in International Trade Disputes: An Empirical Exploration Based on WTO Disputes
- Comments on the Signaling Theory of IPO Underpricing and Investor Protection Laws
