dispute settlement under wto

7/26/2019 Dispute Settlement Under WTO

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Dispute Settlement under World TradeOrganization

Unit 2

Understanding on Rules and Procedures

Governing the Settlement of Disputes (DSU(!nne"ure T#o


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$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&'


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$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'


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-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


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Time period for Settlement of

Disputes


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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'


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%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'


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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'


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9o# do the Panelists #or*6

Panelists #or* in individualcapacity'

%annot receive guidelines romany government.

$ndicative list 3 maintained bySecretariat and revisedperiodically.


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: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&'


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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


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$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.


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%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'


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%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.


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%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'


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%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


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%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'


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!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.


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%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'


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!)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'


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!fter the decision

Bosing countr& must state its intention to do so ata Dispute Settlement -od& meeting held #ithin A

dispute settlement under wto

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