Transatlantic trade disputes seem to be a rising concern. According to the most critical voices, they provoke notable "trade wars" and crucially impair the credibility of the WTO dispute settlement mechanism. In this paper, we suggest that such conclusions are unwarranted. Violation of WTO...

The May 2003 deadline for the completion of the negotiations on improvements and clarifications of the Dispute Settlement Understanding (DSU) under the Doha Mandate has not been met. However, Members agreed in July 2003 to extend the deadline for the review until the end of May 2004. This...

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We explore the incentives countries face in trade litigation within the new WTO dispute settlement system. Our analysis yields a number of interesting predictions. First, because sanctions are ruled out during the litigation process, the dispute settlement system does not preclude all new trade...