Abstract

http://ssrn.com/abstract=1444589
 
 

References (27)



 


 



Optimal Sanctions in the WTO: The Case for Decoupling (and the Uneasy Case for the Status Quo)


Alan O. Sykes


New York University School of Law


Stanford Law and Economics Olin Working Paper No. 379

Abstract:     
Various commentators have suggested that the current system of trade sanctions for violation of WTO obligations be replaced with financial compensation. The details of these proposals vary, but one option is to allow firms injured by violations to recover damages. This paper questions the wisdom of such proposals, and argues that the current system in which those injured by violations do not reap the benefit of sanctions – a “decoupled” sanctions regime in economic parlance – may well be superior for a number of reasons. The paper also reviews and refines the view of current WTO practice as an analogue to expectation damages in private contracts. The original version of this paper was prepared for the interdisciplinary workshop on The Calculation and Design of Trade Sanctions in WTO Dispute Resolution, at the Graduate Institute in Geneva, 2008. The revised version will appear in The Law, Economics and Politics of Retaliation in WTO Dispute Settlement, forthcoming from Cambridge University Press.

Number of Pages in PDF File: 21

working papers series


Download This Paper

Date posted: August 6, 2009  

Suggested Citation

Sykes, Alan O., Optimal Sanctions in the WTO: The Case for Decoupling (and the Uneasy Case for the Status Quo). Stanford Law and Economics Olin Working Paper No. 379. Available at SSRN: http://ssrn.com/abstract=1444589 or http://dx.doi.org/10.2139/ssrn.1444589

Contact Information

Alan O'Neil Sykes (Contact Author)
New York University School of Law ( email )
40 Washington Square South
New York, NY 10012-1099
United States
Feedback to SSRN


Paper statistics
Abstract Views: 994
Downloads: 236
Download Rank: 73,275
References:  27

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.203 seconds