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The purpose of this paper is to analyse World Trade Organisation (WTO) remedies from a developing country perspective, with a view to suggest reforms in the system.

WTO members' proposals for reforming WTO remedies and WTO cases are reviewed in order to determine the need for reforms and the nature of reforms to be undertaken.

WTO remedies are unfavourable to developing countries, most of which are unable to utilise them due to their weaker economies as compared to their developed country counterparts. There is no consensus on the nature of reforms to be undertaken. This paper suggests the need to synthesise the current proposals and develop various workable models.

This paper provides proposals which may improve WTO remedies for the benefit of developing countries, thereby not only strengthening the WTO enforcement mechanism but the multilateral trading system as a whole.

Limited participation of least developed countries (LDCs) in the WTO's dispute settlement system has been the focus of intensive debate among WTO scholars, diplomats and, in particular, WTO lawyers. Central to this debate are the major hurdles (financial and political) that LDCs are generally perceived to face in using the existing system of remedies in the WTO system to enforce compliance. Of the two existing compliance enforcement mechanisms, the first – compensation – is often unrealistic because the WTO Member whose measures have been found to be WTO inconsistent has to agree with it; while the second – retaliation (i.e., the suspension of concessions with regard to the non-complying Member) – is a costly and in many ways counter-productive “shooting oneself in the foot” remedy that LDCs in particular can usually ill afford.

This chapter briefly discusses proposals for reform that have been proposed to alleviate these problems. The chapter then reviews two additional instruments that LDCs could pursue to improve their ability to enforce compliance and make the WTO dispute settlement system a more viable instrument: limited use of direct effect; and increased use of the instrument of publicity and public relations, including through civil society. These instruments, whether independently, or in combination with existing mechanisms and other new compliance enforcement measures, could provide useful tools for the WTO's poorest Members to increase the chances for pay-off from WTO litigation and for compliance with WTO law by larger and more powerful trading partners.

The appropriateness of retaliatory trade measures in the World Trade Organization dispute settlement process have increasingly come under scrutiny in recent years. Several Members and commentators alike have recommended large-scale amendments to the Dispute Settlement Understanding (DSU) to provide alternatives to retaliatory measures, with the most notable including compensation, collective retaliation, and increased special and differential treatment for developing countries and/or widespread loss of privileges for non-conforming respondents.

Unfortunately, many of the proposals failed to first identify the aims and objectives of the retaliatory phase, or even of dispute settlement more generally. This chapter takes a more holistic approach in its analysis of whether any of the current proposals will improve (or harm) the system. In doing so, this chapter will first assess the effectiveness and appropriateness of retaliatory trade measures by evaluating the goals and objectives in which it is designed to achieve. It will then evaluate some of the more prominent proposals for amending the DSU under the same framework. Taking such an approach will allow for a more comprehensive review and will reveal not only the problems with retaliatory trade measures, but also its positive aspects, and not only the positive aspects of the suggested alternatives but also where they may be detrimental to the system.

The purpose of this paper is to show that, instead of replacing trade retaliation with alternatives that are equally problematic, such as monetary damages, mandatory trade compensation, or formal membership sanctions, the World Trade Organization (WTO) might gain from relying exclusively on informal remedies.

The paper critically reviews the main proposals brought forward in the literature and by WTO members on how to reform WTO remedies. It takes a fresh look at whether any viable, both economically and legally sensitive, alternatives exist.

First, the fact that WTO dispute settlement does not rely on monetary damages and on reparation for past losses is economically justified. Second, switching to an alternative remedy of mandatory trade compensation is not a viable alternative to proportional countermeasures. Third, introducing formal membership sanctions into the WTO would either remain ineffective or turn out to be counterproductive for progressive trade liberalization. Fourth, in order not to provoke an excessive increase of the total cost for WTO members to breach their obligations, any strengthening of the WTO's informal remedies should not be undertaken on top of existing remedies, but as part of a major paradigm shift built on the abrogation of trade retaliation.

The article contributes to the ongoing debate on how to reform the WTO's dispute settlement mechanism.

This article joins an already vast body of literature dealing with potential reforms of the WTO's dispute settlement mechanism. It provides a holistic review of the main existing reform proposals under both legal and economic aspects and adds original insights in discussing the replacement of trade remedies by strengthened informal remedies.

Though an undervalued Yuan is not the only factor that contributes to the US bilateral trade deficit with China, it is widely accepted as being one of the leading factors. The heightened debate over the value of the Yuan may lead to “beggar thy neighbour” retaliation. The purpose of this paper is to provide a historical review of the Y/$ exchange rate movements, review the US congressional bills to revalue the Y/$ exchange rate and Chinese Government's reactions, presents a conceptual analysis of the effect of the undervalued Yuan on trade between China, the USA, and competitors, and discuss the arguments for and against revaluation of the Yuan.

Conceptual analysis graphically illustrates how the undervalued Yuan affects world trade and shows the benefits and losses for various countries.

Though an undervalued Yuan is not the only factor that contributes to the US bilateral trade deficit with China, it is widely accepted as being one of the leading factors. Due to its effects on production, consumption, and trade, a solution is needed. Although measuring the exact misalignment of the Chinese currency has led to various results, it is generally agreed that the Yuan is undervalued, and the US Congress has been persistent in introducing various bills to tackle the problems arising from the undervalued Yuan. Arguments for and against revaluation has heightened debate which may lead to “beggar thy neighbour” retaliation.

This paper outlines very timely and pretentious trade issues between China and the USA and contributes to the area of research of exchange rate effects on international trade.

This study conceptualizes the equity gap (EG) in construction contracting and examines its impact on project performance.

The identification of EG was first summarized from a literature review. A conceptual framework that included EG elements of information, risks, expected return and power asymmetry was then proposed. A study of the Hong Kong–Zhuhai–Macau Bridge supported the existence of EG. The framework was further refined by incorporation of 21 EG identifications. To examine the reliability of the framework, data were collected from 106 senior project professionals to evaluate the extent to which EG identification occurred in their projects. A Partial Least Square–Structural Equation Modeling (PLS-SEM hereafter) analysis was conducted on the collected data.

The proposed framework was deemed statistically significant. Furthermore, no significant differences were detected between the developer and contractor. The concepts of asset and process specificities suggested that the unaddressed EG may be met with retaliatory behaviors, such as noncooperation, procrastination, opportunism and withdrawal, as the physical works proceed. These behaviors may also hamper project performance.

To address the EG ex post, it is suggested that relational incentives to balance the power differential be set, reallocation of risks and return and enhancing task programmability for ease of monitoring and performance evaluation.

This study investigates the downside of the EG between the contracting parties. The proposed EG framework informs the project management of critical EG elements and possible methods to narrow the gap ex post. Practical suggestions are also provided to manage construction contracts in general and in the use of incentive schemes to address EG.

Purpose – The chapter examines whether the well-known Kemp–Wan proposition about customs unions is valid for free trade associations (FTAs).

Methodology/approach – The chapter employs the assumption of perfect competition but with considerable generality.

Findings – It is shown that the Kemp–Wan proposition is valid for any form of FTA. It is also shown that sense can be made of the common conjecture that a customs union is more beneficial to the world economy than a comparable but distinct FTA.

Originality/value – The findings are of significance in view of the recent tendency of governments to prefer FTAs to customs unions.