Publication Type: Conference Paper/Unpublished Manuscript
Abstract: State compliance with rulings from the WTO dispute settlement process is investigated in this analysis. A probit regression is used to determine how variables representing a state power argument (relative GDP advantages and regional trade agreement membership) affect the level of concessions that a complainant state in a dispute is able to induce from the respondent state. The results show that regional trade agreement membership gives respondents a statistically significant defensive advantage. In other words, regional trade agreement membership appears to increase the ability of respondent states to shun adverse dispute settlement rulings. Therefore, the nature of the WTO dispute settlement process appears to remain power-based. The results have important implications for the theoretical debate between realism and liberal institutionalism.