Date: 2013
Type: Other
The role of economic theory in WTO arbitrations
EUI RSCAS PP, 2013/02, Global Governance Programme, Global Economics
RUTA, Michele, The role of economic theory in WTO arbitrations, EUI RSCAS PP, 2013/02, Global Governance Programme, Global Economics - https://hdl.handle.net/1814/26495
Retrieved from Cadmus, EUI Research Repository
How can economic theory be useful in WTO arbitrations? Motivated by this question, this paper reviews the approach that is often used to determine the level of permissible retaliation in international trade disputes (the, so called, "trade effect" approach), and its implementation under specific policy scenarios (tariffs, quotas, subsidies). Through these examples, the paper argues that economic theory, in addition to quantitative economics, can play a useful role in assisting WTO arbitrators in understanding the pros and cons of the trade effect approach and in implementing this approach under different policy scenarios.
Cadmus permanent link: https://hdl.handle.net/1814/26495
ISSN: 1830-1541
Series/Number: EUI RSCAS PP; 2013/02; Global Governance Programme; Global Economics
Keyword(s): WTO arbitrations Economic theory Permissible retaliation
Other topic(s): Trade, investment and international cooperation