[Answered] Discuss the role of ‘litigotiation’ in resolving international trade disputes, with reference to the recent settlements between India and the U.S. at the World Trade Organization (WTO).

‘Litigotiation,’ a blend of litigation and negotiation, plays a crucial role in resolving international trade disputes by combining formal legal processes with negotiation strategies. The approach was seen when India and the U.S. settled their last lingering trade dispute on poultry products at the WTO.

Role of Litigotiation in these Settlements

• Pressure for Negotiations: The initiation of formal disputes exerted pressure on both sides to come to the negotiation table, fostering a sense of urgency to resolve the issues without waiting for the lengthy dispute settlement process to conclude.
• Framework for Resolution: The formal legal process provided a structured framework within which negotiations could occur. It sets out the legal boundaries and obligations, helping both parties to understand the stakes and the potential consequences of not reaching a settlement.
• Flexibility and Pragmatism: Through negotiations, both India and the U.S. could explore flexible and pragmatic solutions that a formal ruling might not offer. This included considering broader trade-offs and adjustments that addressed the concerns of both parties more comprehensively than a narrow legal ruling.
• Preserving Relationships: By combining litigation with negotiation, both countries managed to address specific disputes without escalating tensions to a level that could harm their overall trade relationship. This approach helped maintain a constructive dialogue and ongoing trade cooperation.

Outcomes and Implications

• Precedent for Future Disputes: These cases set a precedent for how future trade disputes might be handled, highlighting the value of integrating negotiation with formal dispute resolution mechanisms.
• Enhanced Cooperation: Successful settlements contribute to building trust and enhancing bilateral cooperation, demonstrating that even contentious issues can be resolved through dialogue and compromise.
• Strengthened WTO Role: These examples underscore the importance of the WTO as both a legal and negotiation forum, reinforcing its role in facilitating international trade governance.

Conclusion

The recent settlements between India and the U.S. at the WTO highlight how this approach can lead to mutually beneficial outcomes, preserve trade relationships, and strengthen the overall trade system.