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Implementing WTO Rules through Negotiations and Sanction: The Role of Trade Policy Review Mechanism and Dispute Settlement System

33 Pages Posted: 24 Oct 2009 Last revised: 20 Oct 2015

Julien Chaisse

The Chinese University of Hong Kong (CUHK) - Faculty of Law

Debashis Chakraborty

Indian Institute of Foreign Trade

Date Written: July 24, 2007

Abstract

Based on economic and legal perspectives, the current paper aims to analyze how the World Trade Organization combines negotiations and sanctions to ensure the implementation of its law. While the Trade Policy Review mechanism at the WTO deals with the WTO-compatibility of the trade policy of a particular member in question, the prevalence of such policies can be successfully challenged at the Dispute Settlement Body which makes decisions on trade disputes between governments that are adjudicated by the WTO. The TPR can play a major role in this framework, providing developing and less-developed countries valuable input on the WTO-compatibility of their trade partners. The current paper intends to analyze whether any relationship exists between TPR findings and the outcome of cases lodged at the DSB. To do that, this analysis uses an empirical method involving five countries. Our sample consists of two developing countries (Brazil and India) and three developed countries (the European Community, Japan, and the United States). The paper shows that many issues raised by the TPRs of selected members have been successfully challenged at the WTO, as a result of which areas of concern have been rectified in the subsequent period. The paper concludes that while the WTO is clearly able to ensure a satisfactory enforcement of its laws in national legal orders and to influence national trade policies, the system still needs some improvement.

Keywords: WTO, Implementation, Enforcement, India, Brazil, Japan, USA, EC, Dispute, Trade, Policy

Suggested Citation

Chaisse, Julien and Chakraborty, Debashis, Implementing WTO Rules through Negotiations and Sanction: The Role of Trade Policy Review Mechanism and Dispute Settlement System (July 24, 2007). University of Pennsylvania Journal of International Economic Law, Vol. 28, No. 1, 2007. Available at SSRN: https://ssrn.com/abstract=1493642

Julien Chaisse (Contact Author)

The Chinese University of Hong Kong (CUHK) - Faculty of Law ( email )

Lee Shau Kee Building
Floor 5 - Office No. 523 - Shatin Campus
New Territories
Hong Kong

HOME PAGE: http://www.law.cuhk.edu.hk/en

Debashis Chakraborty

Indian Institute of Foreign Trade ( email )

New Delhi, Delhi 110016
India
91 9818447900 (Phone)
91 11 26853956 (Fax)

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