1.1.2

Legalization, contractual incompleteness and the WTO

How does the WTO DSM address incomplete contracts? Literature on the design of the WTO suggests why WTO negotiators might have good reason to negotiate an agreement that represents an “incomplete” contract. For the WTO, an important implication of this is that recourse to the DSU ends up filling in some of the missing elements of the incomplete contract.

The project strives to offer a more systematic account of the factors that contribute to a gradual closing of the gaps through the Dispute Settlement Understanding (DSU) process. What factors explain a prima facie observed unevenness and bias throughout the process of addressing incomplete contracts? We propose to review evidence from the WTO caseload to focus more on which issues are litigated over, in what ways the WTO rules are being “completed,” and in what ways panellists and the Appellate Body have shied away from offering opinions that might end up “completing” more elements of the contract so as to pre-empt accusations of judicial activism. The project presents empirical evidence as to how legalization affects WTO Members in notably different ways.

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