2008
DOI: 10.1017/s1474745608003960
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Cross-agreement retaliation in the WTO dispute settlement system: an important enforcement mechanism for developing countries?

Abstract: This article aims at analysing the merits and limits of ‘cross-retaliation’ as a mechanism to induce compliance in WTO dispute settlement, specifically from the perspective of developing countries. The focus is on cross-agreement retaliation, in particular with respect to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), as this seems to be the most ‘promising’ area for developing countries. Although there are several legal, economic, and administrative difficulties related to the… Show more

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Cited by 21 publications
(4 citation statements)
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References 35 publications
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“…Lawrence discusses his views on the trade penalty regime and gives the rationale for government responses to WTO rule violations [2], as well as specific practical mechanisms and recommendations for reform [2]. Spadano analyzes the link between cross-retaliation and developing countries and states that developing countries should use the cross-retaliation system to achieve effective retaliation against developed countries [3]. Limenta explores the effectiveness of the retaliation regime and the objectives of the regime from three perspectives [4], especially about the objectives of the regime.…”
Section: Studies On the Retaliation Systemmentioning
confidence: 99%
“…Lawrence discusses his views on the trade penalty regime and gives the rationale for government responses to WTO rule violations [2], as well as specific practical mechanisms and recommendations for reform [2]. Spadano analyzes the link between cross-retaliation and developing countries and states that developing countries should use the cross-retaliation system to achieve effective retaliation against developed countries [3]. Limenta explores the effectiveness of the retaliation regime and the objectives of the regime from three perspectives [4], especially about the objectives of the regime.…”
Section: Studies On the Retaliation Systemmentioning
confidence: 99%
“…In terms of research on specific issues, Reference [12] conducts a systematic legal and economic analysis based on the arbitration report of the US-Highland cotton subsidy case and points out the current difficulties and problems of WTO retaliation. Reference [13] discusses the nature and principles of cross-retaliation in combination with the EC-Bananas III case, the US-Gambling case, and the US-Upland Cotton case; analyzes the dilemma in practice; and puts forward suggestions to strengthen the supervision of the enforcement of the ruling and the combination of cross-retaliation. Reference [14] explains the provisions and principles of Article 22.3 of the DSU on choosing the form of retaliation and the analysis of the determination of infeasibility or invalidity, and the situation is serious enough in arbitration with reference to cases.…”
Section: Related Workmentioning
confidence: 99%
“…Typically, for a small-market country seeking to retaliate against an economically powerful country, trade sanctions often result in 'shooting oneself in the foot' (i.e., in the form of increased import prices) while inflicting little economic harm -and hence, retaliatory pressureon the offending party. 155 Retaliation in the area of trade-related intellectual property rights (TRIPS), as opposed to goods and services, may help mitigating the first of these shortcomings, 156 but its potential in exerting pressure on the defaulting party will ultimately depend on the market size of the retaliating country. In WTO practice, this has been illustrated by the relatively successful experience of a large developing country (i.e., Brazil in US -Upland Cotton) and the unsuccessful attempt of a small developing country (i.e., Antigua in US -Gambling) in cross-retaliating under the TRIPS Agreement against the United States.…”
Section: Moving Towards Sanction-based Enforcement?mentioning
confidence: 99%