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Extra resources for Developmental States and Business Activism: East Asia’s Trade Dispute Settlement

Sample text

In other words, collaboration under such a setting is more likely to provide the executive branch political impetus to reconcile the risk on the diplomatic front. On the other hand, the litigant government will demonstrate low aggression when it lacks a proper partnership with the export sector, meaning lack of impetus for the executive branch in WTO litigation. However, it is important to note that the classification defined here is for the sake of comparative analysis; each WTO litigation case has differing context, it is necessary to Analytical Framework 31 examine the entire process of each litigation case a country has filed to determine which one is more aggressive than the others.

Industries with oligopolistic firms, who have scale of Analytical Framework 27 production, profits, and other resources, have an easier time overcoming collective action problems. 29 For all these reasons, their industry associations and trade-related business organizations (such as chambers of commerce) are more capable to play an effective role in handling foreign trade remedy charges and undertaking necessary policy advocacy, including cooperation with the government amid WTO litigation. 30 Industries of this kind—usually consisting of small and medium-sized firms—are disadvantaged in handling foreign trade remedy suits as these industries lack dominant leaders, making it hard to form leadership and thus becoming susceptible to the free-riding problem.

34 Following the 1997–1998 financial crisis, the Office of Minister of Trade (OMT) under the Ministry of Foreign Affairs (or later named as the Ministry of Foreign Affairs and Trade, MOFAT) was set up as the chief coordinating office for foreign trade affairs to manage the complex legal aspects of international trade. Within the OMT, a trade remedy taskforce was created with the mandate to respond to exporters’ requests over export Korea’s Pursuit of WTO Litigation 41 restriction problems, including the option of filing WTO litigation.

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