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How Do Third Parties Affect Compliance in the Trade Regime

Bibliographic Data

ID6385228
AuthorsJeffrey Kucik (0000-0002-8184-9027, University of Arizona), Lauren Peritz (University of California, Davis)
Year2021
Volume83
Issue3
Pages1184-1189
Publication date2021-07-01
Open AccessNo
TypeARTICLE
VenueThe Journal of Politics (JOURNAL)
Journal identifiersISSN: 0022-3816 • E-ISSN: 1468-2508
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/711058
OpenAlexW3045634923
LanguageEN
Citations received8
References cited14

A core insight of the literature on dispute settlement at the World Trade Organization (WTO) is that third party countries help enforce the organization’s multilateral objectives, including the fundamental principle of nondiscrimination. Little is known, however, about when countries comply with WTO rulings and whether these bystander states play a role. We introduce new data on compliance, measured as whether losing countries make tangible domestic reforms to bring policy in line with WTO rulings. We show that compliance is significantly less likely in disputes with more third parties. Using a variety of estimation techniques, including controlling for nonrandom selection into legal rulings, we demonstrate a robust correlation between third party participation and noncompliance. Our findings highlight a risk of stringent enforcement and suggest that compliance problems threaten to undercut the operation of the multilateral trade regime. © 2021 by the Southern Political Science Association. All rights reserved

Business · Compliance (psychology · Economics · Enforcement · International economics · International trade · Political science · Third party · Variety (cybernetics · World trade · Global trade and economics · International Arbitration and Investment Law · Law · World Trade Organization Law

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Citations per year2
Citation span2022 - 2026 (5)
Highly citedNo

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