In theory, the WTO dispute settlement system is expected, via an elaborate system of sequential legal maneuvers to ensure the implementation of the dispute settlement body (DSB) recommendations. In reality when trade issues rise above some critical threshold to a respondent, the theory behind...

Paper presented at the 16th International Conference of the International Trade and Finance Association focusing on "Globalization and its Controversies", in Lodz, Poland, May 10 -14, 2006. Funding for this project was provided by the US Fulbright Program and the US-Israel Educational Foundation.

Issues concerning the consequences of trade liberalization and the resulting reduction in domestic fiscal budgets have always been the 'hot' topic in the trade policy community. This paper approaches this issue by focusing on the experience of the Israeli economy in the twenty year period...