Date post: | 02-Mar-2018 |
Category: |
Documents |
Upload: | aadityavasu |
View: | 222 times |
Download: | 0 times |
of 21
7/26/2019 Dispute Settlement Under WTO
1/21
Dispute Settlement under World TradeOrganization
Unit 2
Understanding on Rules and Procedures
Governing the Settlement of Disputes (DSU(!nne"ure T#o
7/26/2019 Dispute Settlement Under WTO
2/21
$ntroduction
%entral pillar of the multilateral tradings&stem'
The priorit& is to settle disputesthrough consultations if possi)le'
Disputes in the WTO are essentiall&a)out )ro*en promises'
The& #ill use the multilateral s&stem ofsettling disputes instead of ta*ingaction unilaterall&'
7/26/2019 Dispute Settlement Under WTO
3/21
$mportance of dispute settlement
under the WTO
More structured process
Defned stages in the procedure'
Disciplined time limits #ithrela"ations as #ell'
$f a case runs its full course to a +rst
ruling it should not normall& ta*emore than about one year , 15months i the case is appealed'
7/26/2019 Dispute Settlement Under WTO
4/21
-loc*ing a Particular Ruling
Under the previous G!TT procedurerulings could onl& )e adopted )&consensus meaning that a single
o).ection could )loc* the ruling'
Under WTO rulings are automaticall&adopted unless there is a consensus
to re.ect a ruling , an& countranting to )loc* a ruling has topersuade all other WTO mem)ers
(including its adversar& in the case
7/26/2019 Dispute Settlement Under WTO
5/21
Time period for Settlement of
Disputes
7/26/2019 Dispute Settlement Under WTO
6/21
Stages of DisputeSettlement
Responsi)ilit& / Dispute Settlement -od& (theGeneral %ouncil in another guise consistingo all WTO members.
The Dispute Settlement -od& has the soleauthorit& to esta)lish 0panels1 of e"perts toconsider the case and to accept or re.ect thepanels +ndings or the results of an appeal'
$t monitors the implementation of therulings and recommendations and has thepo#er to authorize retaliation #hen a countr&does not compl& #ith a ruling'
7/26/2019 Dispute Settlement Under WTO
7/21
%omposition of Panels
Panelists are chosen in consultation#ith the countries in dispute'
T#o sides fail to agree 3 WTOdirector/general appoints them'
4inimum three ma"imum +vee"perts from di5erent countries 3e"amine the evidence'
Report is passed to the DisputeSettlement -od& 3 Re.ect the report
)& consensus'
7/26/2019 Dispute Settlement Under WTO
8/21
Who are the Panelists6
%hosen from an indicative list of #ell7uali+ed candidates'
People not on the indicative list canalso appl&'
8ominated )& the WTO mem)ers'
$ndividuals #ho have formerl& servedcan also )e nominated'
7/26/2019 Dispute Settlement Under WTO
9/21
9o# do the Panelists #or*6
Panelists #or* in individualcapacity'
%annot receive guidelines romany government.
$ndicative list 3 maintained bySecretariat and revisedperiodically.
7/26/2019 Dispute Settlement Under WTO
10/21
:irst Stage
%onsultation stage'
Upto ;< da&s'
%ountries have to tal* to each otherto see if the& can settle theirdi5erences )& themselves'
$f that fails 3 as* WTO DirectorGeneral to mediate or tr& to help inan& other #a&'
7/26/2019 Dispute Settlement Under WTO
11/21
Second Stage
Panel
5 days or !anel to get established
!lus " months or the panel to conclude'
:ailure of consultations 3 complaining countr& can as*for appointment of panel'
Panel is helping the Dispute Settlement -od& ma*erulings or recommendations'
-ecause the panels report can onl& )e re#ected byconsensus in the Dispute Settlement $ody% its
conclusions are di&cult to overturn.The panels+ndings have to )e based on the agreements cited.
!anels frst report to parties ' (ithin si) months.
Perishable goods within three months
7/26/2019 Dispute Settlement Under WTO
12/21
$mportant stages in front ofPanel
$eore the frst hearing 3 each side inthe dispute presents its case in #riting tothe panel'
*irst hearing + the case or thecomplaining country and deence,thecomplaining countr& (or countries theresponding countr& and those that have
announced the& have an interest in thedispute ma-e their case at the panelsfrst hearing.
7/26/2019 Dispute Settlement Under WTO
13/21
%ont=
/ebuttals,the countries involvedsu)mit #ritten re)uttals and presentoral arguments at the panels
second meeting.
0)perts,if one side raises scienti+cor other technical matters the panel
ma& consult e)perts or appoint ane)pert revie( group to prepare anadvisor& report'
7/26/2019 Dispute Settlement Under WTO
14/21
%ont=
*irst drat,the panel su)mits thedescriptive (actual and argumentsections of its report to the t#o sides
giving them t(o (ee-s tocomment.
This report does not include
fndings and conclusions.
7/26/2019 Dispute Settlement Under WTO
15/21
%ont=
nterim report,The panel thensu)mits an interim report includingits +ndings and conclusions to the
t#o sides giving themone (ee- toas- or a revie(.
/evie(,The period of revie# must
not e)ceed t(o (ee-s. Duringthat time the panel ma& holdadditional meetings #ith the t#o
sides'
7/26/2019 Dispute Settlement Under WTO
16/21
%ont=
*inal report,! +nal report issu)mitted to the t#o sides and three#ee*s later it is circulated to all
WTO mem)ers'
$f the panel decides that the disputedtrade measure does )rea* a WTO
agreement or an o)ligation itrecommends that the measure )emade to conform #ith WTO rules'
The panel ma& suggest ho# this
7/26/2019 Dispute Settlement Under WTO
17/21
%ont=
The report becomes a ruling,Thereport )ecomes the DisputeSettlement -od&s ruling or
recommendation #ithin ;< da&sunless a consensus re.ects it' -othsides can appeal the report (and in
some cases )oth sides do'
7/26/2019 Dispute Settlement Under WTO
18/21
!ppeals
>ither side can appeal a panelsruling'
Sometimes )oth sides do so'
!ppeals have to )e )ased on pointso la( such as legalinterpretation , the& cannot
ree)amine e)isting evidence ore)amine ne( issues.
7/26/2019 Dispute Settlement Under WTO
19/21
%omposition of !ppellate-od&
!ppellate -od& is set up )& theDispute Settlement -od&'
!ppellate -od& 3 seven permanentmem)ers'
Three out of seven hear the appeal'
Term of seven mem)ers 3 four &ears'
2riteria/ $ndividuals #ith recognizedstanding in the +eld of la# andinternational trade not a?liated #ithan& government'
7/26/2019 Dispute Settlement Under WTO
20/21
!)out appeals
!ppeal can uphold modif& or reversethe panels legal +ndings andconclusions'
8ormall& appeals should not lastmore than ;< da&s #ith an a)solutema"imum of @< da&s'
The Dispute Settlement -od& has toaccept or re.ect the appeals report#ithin A< da&s'
7/26/2019 Dispute Settlement Under WTO
21/21
!fter the decision
Bosing countr& must state its intention to do so ata Dispute Settlement -od& meeting held #ithin A