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Enduring trade disputes: Disguised protectionism and duration and recurrence of international trade disputes
Authors:Moonhawk Kim
Institution:1.University of Colorado Boulder,Boulder,USA
Abstract:Why do some WTO trade disputes endure and recur while others do not? States have difficulty resolving trade conflicts when they involve certain types of trade-restrictive domestic regulations. While such regulations vary in their extent of legitimacy—fulfilling non-trade domestic regulatory objectives and availability of less trade-restrictive options—complainant states cannot always distinguish legitimate barriers from illegitimate ones. In such scenarios of disguised protectionism, which I argue is most prevalent with policies involving WTO’s Sanitary and Phytosanitary (SPS) Agreement, disputants confront difficulties concluding their disputes. Disputes last longer and are more likely to recur. I test the argument against a data set of WTO disputes structured in an innovative manner—one that links together related and recurring disputes into single conflicts. Both an event history analysis of conflict duration and a count analysis of conflict recurrence using this data strongly support this argument.
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