This book examines the effectiveness of retaliation in the context of World Trade Organization (WTO) dispute settlement. WTO dispute settlement is one of the most active international adjudicative systems in the world. The significant number of disputes brought before it demonstrates the Members strong confidence in the system. It is also widely accepted that WTO dispute settlement has a reasonably good record of compliance. Respondent Members generally comply with adverse rulings. However, there are a few examples of disputes where the losing party fails to comply. This has raised the issue of the efficacy of WTO retaliation. WTO retaliation is commonly seen as an instrument to induce the recalcitrant state to comply in the event of continued non-compliance. Many commentators argue that it works in a frustrating way in inducing compliance, particularly when the losing party is a developed country Member. This book considers and weighs these criticisms, but it takes a fresh approach in measuring the effectiveness of retaliation. It evaluates effectiveness using a purpose-based analysis. This approach is backed up by the dictionary definition of effectiveness which suggests that a rule is deemed effective if it can achieve its underlying purpose.

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