Gravitation or Discrimination? Determinants of Litigation in the World Trade Organisation

Posted: 27 Jun 2013

See all articles by Thomas Sattler

Thomas Sattler

University of Geneva - Department of Political Science and International Relations

Thomas Bernauer

ETH Zurich

Date Written: June 25, 2013

Abstract

The strong presence of large countries in World Trade Organisation (WTO) dispute settlement and the absence of very poor ones have raised concerns that increasing legalisation in the global trading system has not diminished discrimination against less powerful countries as much as expected. This article examines dispute initiations in all WTO member state dyads in 1995-2003 to shed more light on this issue. The analysis suggests that the main driver of dispute initiation is a gravitational one: larger economies and bigger traders are more likely to become involved in trade disputes primarily because their economies are more diversified, and also because greater market size makes them more attractive targets of litigation. While evidence is not found for discriminatory effects against countries with small legal capacity, the results of the article point to a more complex form of power bias – namely a preponderance effect. They suggest that disputes among country dyads including a much more powerful defendant than complainant or vice versa are dealt with outside the WTO. This finding is potentially worrying because it is, arguably, easier to reduce legal capacity differences than to reduce power differences.

Suggested Citation

Sattler, Thomas and Bernauer, Thomas, Gravitation or Discrimination? Determinants of Litigation in the World Trade Organisation (June 25, 2013). European Journal of Political Research, Vol. 50, No. 2, pp. 143-167, 2013. Available at SSRN: https://ssrn.com/abstract=2284722

Thomas Sattler (Contact Author)

University of Geneva - Department of Political Science and International Relations ( email )

40 boulevard du Pont d'Arve
Genève 4, Geneve CH-1211
Switzerland

HOME PAGE: http://www.thomassattler.org

Thomas Bernauer

ETH Zurich ( email )

Center for Comparative and International Studies
Building IFW, office 45.1, Haldeneggsteig 4
Zurich 8092, 8092
Switzerland
+41 44 632 6466 (Phone)
+41 44 632 1289 (Fax)

HOME PAGE: http://www.ib.ethz.ch

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