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31 - WTO Dispute Settlement: Of Sovereign Interests, Private Rights, and Public Goods

Of sovereign interests, private rights and public goods

Published online by Cambridge University Press:  05 May 2010

Joost Pauwelyn
Affiliation:
Associate Professor of Law, Duke Law School
Keith E. Maskus
Affiliation:
University of Colorado, Boulder
Jerome H. Reichman
Affiliation:
Duke University, North Carolina
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Summary

The problem spelled out

The focus of this section on intellectual property rights begs the larger question of whether the WTO mechanism to settle trade disputes between states takes sufficient account of so-called “public goods” in general. It obliges us immediately to ask what public goods could be relevant in WTO disputes as a whole.

The very objective of trade liberalization, the leitmotif of the WTO, as well as its ancillary aim of protecting intellectual property (IP), as enshrined in the TRIPS Agreement, could in their own right be seen as public goods. Their achievement is said to make everyone better off. Fewer trade restrictions result in a more efficient allocation of world resources and more IP protection spurs innovation and economic growth. Market forces – when it comes to freer trade, in particular domestic political markets – do not sufficiently provide these goods, hence the need for regulatory intervention (in the field of trade, intervention of a negative nature, prohibiting restrictions; in the IP field, intervention of a positive nature, prescribing minimum levels of protection) and the public nature of these goods.

WTO disputes may also touch upon other public goods, often portrayed as goods or objectives that clash with the primary WTO aims of trade liberalization and IP protection. Examples of such public goods are the protection of the environment, respect for human rights, sustainable development, and the transfer of technology and resources from developed to developing countries.

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