The central point of this book concerns three main issues: the problems of WTO retaliation, the question of the effectiveness of retaliation, and the purposes of retaliation. WTO retaliation is often deemed ineffective due to its inherited shortcomings. This book highlights the significance in identifying the purposes of retaliation prior to evaluating its effectiveness. Put differently, it refers to the purpose-based approach of effectiveness. It is a common understanding that the purpose of WTO retaliation is to induce compliance. This book, nevertheless, argues in favour of coexistence of the multiple purposes of retaliation, including reaching a mutually agreeable solution. These views are based on the extensive research conducted on the purposes of WTO retaliation, namely through interpreting Article 22 of the DSU; examining the remedies rules within the frameworks of public international law, and law and economics; and assessing the academic writings/debates as well as the statements of arbitrators. Finally, by evaluating a number of disputes involving WTO retaliation, this book demonstrates the reasonableness and soundness of WTO retaliation in light of its multiple purposes.
Michelle Limenta is a Senior Lecture and Director of the Center for International Trade and Investment at Universitas Pelita Harapan, Indonesia.
1. Overview I. Introduction to WTO Dispute Settlement: The Best Vote of Confidence for the Multilateral Trading System II. Problems Presented: Retaliation, a Flaw in the Successful System? III. WTO Law in Relation to Other Legal Systems IV. The Objective and Plan of the Book 2. Retaliation in the Multilateral Trading System I. Temporary Remedies in the DSU II. Law to Retaliate Under GATT and WTO Dispute Settlement III. Retaliation in Regional Trade Agreements 3. Shortcomings of WTO Retaliation and Reform Proposals I. The Shortcomings and Problems Inherent in WTO Retaliation II. Proposals to Enhance WTO Retaliation and the Criticisms 4. Purposed-based Approach in Evaluating Effectiveness I. Compliance, Implementation, Effectiveness and Purpose-based Approach II. Debates Regarding the Purpose of Retaliation 5. Legal Quests in Searching for the Purposes of Retaliation I. First Quest: Reference to Remedies Under the ILC Draft Articles on State Responsibility II. Second Quest: Reference to Contract Remedies from Law and Economics Perspective III. Third Quest: Article 22.6 Arbitrators' Statements With Regard to the Purpose of Retaliation IV. Fourth Quest: Interpretation of Article 22 of the DSU in Accordance with the Customary Rules of Interpretation to Clarify the Purposes of WTO Retaliation 6. Retaliation to Induce an Amicable Settlement as Another Competing Purpose and the Effectiveness of WTO Retaliation I. Amicable Settlements in the Multilateral Trading System II. The Question About the Effectiveness of WTO Retaliation III. A Way Forward 7. Concluding Remarks I. Summary of the Book II. Final Observations