Dispute Settlement in the WTO

1
?????????? ?????? ? ???Dispute Settlement in the
WTO

• ??????????? ???????????? ? ??????????????? ?
  ?????????????? ???????? ???????
• (?????? 3.2 ???)
• providing security and predictability
• to the multilateral trading system
• (Art.3.2 DSU)

????? ????????? ??????? ???????? ?? ????????
????? ???????? ??????????? ????????? ???? Daría
Goldstein Senior Legal Counsel Legal
Department The World Bank
2
I. ?????I.Overview

• ????????, ???????????? ?? ??????????? ??????????
  ??????? ??????????
• A mechanism aimed at securing compliance with
  the Agreements
• ??????????? ??? ???? ??????
• Accessible to all Members
• ????????? ????????? ? ??????? ???????
• Detailed procedures with clear deadlines
• ?????????????? ???????????? ??? (?????????????
  ?????????)
• Automaticity in the proceedings (negative
  consensus)
• ??????????? ?????????
• Possible appeal

3
II. ??????II.Basis

• ???????? ?? ?????????????? ??????? ??????????
  ?????? ????
• Based on previous GATT dispute settlement
  system
• ?????? XXII ? XXIII ????
• Articles XXII and XXIII of GATT
• ?????? ? ?????????? (???????? ??????) / ??
  ??????????? ? ??????????
• Violation (most common) / non-violation
  complaint
• ???????? ? ???? ? ???????? ????? ?? ?????????? ?
  ???
• Nullification and impairment of benefits under
  the WTO Agreement

4
II. ?????? (???????????) II.Basis (contd)

• ???????, ??????????????? ? ????????? ?????? ?
  ???????? ?????????? ?????? (?????????? 2
  ?????????? ? ???)
• Rules embodied in the Dispute Settlement
  Understanding (Annex 2 of WTO Agreement)
• ??????????? ???????????? ? ???????????????
  ?????????????? ???????
• Provide security and predictability to the
  multilateral system
• ?????? ???? ? ???????????? ??????
• Preserving the rights and obligations of Members

5
III. ?????III.Scope

• ??????????? ?????? ?????????? ? ????? ? ????????
  ???????????????, ??????????? ? ?????? ????????
  ?????????????????? ?????, ???????????? ?????? ? ?
  ????? ???????????
• Most disputes revolve around the concept of
  non-discrimination under the principle of MFN,
  national treatment and general exceptions
• ????????????? ??? ????????? ????????? ??????????
  ? ??? ? ???????????? ? ???????? ?????????
  ????????????? ?????????????? ?????????? ?????
• Intended to clarify the provisions of the WTO
  Agreement in accordance with customary rules of
  interpretation of public international law

6
IV. ?????????????? IV.Characteristics

• ??????????????? ???????
• An Integrated system
• ????????? ?? ???? ?????????????? ????????
• Applies to all multilateral system
• ?????? ????? ?????? ??? ???? ??????
• A single set of rules for all disputes
• ?????? ????????? ??????????? ?????? (????????,
  ???????? ????????? ? ?.?.), ????????, ??
  ??????, ??? - ??????
• Only a few specific rules (SCM, Agriculture,
  etc)
• ex EC-Bananas, US-Cotton

7
IV. ?????????????? (???????????)
IV.Characteristics (contd)

• ????????????? ????????? ??????? ???
  ???????????????? ???????
• Mutually agreed solutions as preferred
  solutions
• ????????? ?????? - ????????? ?????????? ??????
• Prompt settlement of disputes is essential
• ?????? ?? ????????????? ???????????
• Prohibition against unilateral determinations
• ?????????????? ??????????
• Exclusive jurisdiction
• ???????????? ????????
• Compulsory nature

8
V. ???????? ??????????? ????V.Main Characters

• ??????? ????? ???
• The Parties WTO Members
• ?????????? ?????? ? ????????????? ?????
• The Panel and Appellate Body
• ???
• The DSB
• ??????????? ? ??????????? ???????? ???
• WTO Secretariat and DG

9
VI. ???????? ????? VI. Main Stages

• 1. ???????????????? ????
• 1.Consultation Phase
• ??? ???????????? ????????????? ????????? ???????
• DSU favors mutually agreed solutions
• ?????
• Deadlines
• ?????? 30 ???? ?? ??? ??????????? ?????????
• Beginning 30 days from request
• ??? ????????????? ??????? ????? ? ????
  ???????????? ? ??????? 60 ???? ?? ??? ???????????
  ?????????
• If consultations fail to resolve the matter
  within 60 days from receipt of request
• ??? ??????????? ???????, ??? ??????? ??
  ?????????? ? ?????????????
• Or if no response or no entering into
  consultation
• ????? ???????? ?????? ?? ???????????? ??????????
  ??????

10
VI. ???????? ????? (???????????)VI. Main
Stages

• 2. ?????????? ??????
• 2. The Panel
• ?????? ?? ????????????
• Request for establishment
• ?? ????????? ??? ????? ?????????????? ??????????
• At DSB Meeting by negative consensus
• ??????????? ?????????? ??? ? ??????????????
  ???????? ?????????
• Identify the specific measures and provide a
  brief summary
• ??????
• Composition
• ????????????????? ??????????????? ?/???
  ????????????????? ???????????
• Qualified government and/or non-governmental
  individuals
• ???????? ?????????? ??????????? ?????????? ??
  ?????? ????????????
• Possible nomination by the DG based on
  Secretariat list

11
VI. ???????? ????? (???????????) VI. Main
Stages

• 2. ?????????? ?????? (???????????)
• 2. The Panel
• ???????
• Functions
• ?????????? ??????????? ?????? ? ??????
  ???????????? ? ???????????? ? ?????????
  ??????????????? ??????????
• Make an objective assessment and
  applicability/conformity with the relevant
  agreements
• ?????? ???? ? ???????????? ??????
• Preserve the rights and obligations of
  Members
• ????????? ??????????? ?????????
• Clarify existing provisions

12
VI. ???????? ????? (???????????) VI. Main Stages

• 2. ?????????? ?????? (???????????)
• 2. The Panel
• ?????? ??????? ???????????? ??????? ?
  ???????????? ?????
• Third parties substantial interest and
  limited rights
• ?????
• Deadlines
• /- 6 ??????? ? ??????? ???????????? / ?? ??????
  ????????
• /- 6 months from composition/TORs to report
  to the parties
• /- 9 ??????? ??????? ???????????? ??
  ???????????? ??????? ??? ???????? ? 12 ???????
  ??? ??????? ?????????
• /- 9 months from establishment to
  consideration of report for adoption and 12
  months if report is appealed

13
VI. ???????? ????? (???????????) VI. Main Stages

• 2. ?????????? ?????? (???????????)
• 2. The Panel
• ??????????????????, ????? ?? ?????? ??????????
  (????????, ?????????? ??????????)
• Confidentiality, Right to seek information
  (experts, amicus briefs)
• ??????? ????????? ??? ?????? ?????????
• Working procedures for each panel
• ????????????? ??????
• Final report
• ???????? ? ??????? 60 ???? ? ???????
  ??????????????? ????? ?????????????? ??????????
  ?? ??????????? ?????? ? ??????????
• Adoption within 60 days of circulation by
  negative consensus except if APPEALED

14
VI. ???????? ????? (???????????) VI. Main Stages

• 3. ????????????? ?????
• 3. The Appellate Body
• ?????????? ????? ? ??????? ???? ??????
• Permanent Body of seven members
• ?????????, ???????????? ????????? ????????? ?
  ??????????? ???????????, ?????? ??????????
  ???????
• Appeals limited to issues of law and legal
  interpretation developed by the Panel
• ?? ?????? ???????????, ???????? ??? ????????
  ???????? ??????? ? ?????? ?????????? ??????
• AB may uphold, modify or reverse the legal
  findings and conclusions of the panel

15
VI. ???????? ????? (???????????) VI. Main Stages

• 3. ????????????? ????? (???????????)
• 3. The Appellate Body
• ???????? ?????? ???????? ?????
• Only open to parties to the dispute
• ?????????????? ???? ???????????? ?????
• Final stage in the adjudicatory phase
• ??????
• Report
• ??????????? ????????????? ??????????? ? ???????
  30 ???? ?? ??? ??????????????? ????? ??????
• Adopted by negative consensus within 30 days
  of circulation to Members

16
VII. ??????????VII. Implementation

• ????????????
• Recommendations
• ?????????? ??? ? ????????????
• Bring measures into conformity
• ? ??????? 30 ???? ? ??????? ???????? ???????,
  ???? ?????? ???????????????? ??? ? ?????
  ?????????? ???????????? ?????????? ???????
• Within 30 days of adoption of the report, the
  Member must inform DSB of its intentions re
  implementation
• ???????? ?????? ???????, ??? ???????, 15
  ??????? ? ??????? ???????? ???????
• Reasonable period of time usually 15
  months from date of adoption of report

17
VII. ?????????? (???????????)VII. Implementation

• ?????? ?? ??????? ???
• Surveillance by the DSB
• ? ?????? ????????, ???????? ????????? ????
• In case of failure possible temporary measures
• ??????????? ????????????, ?????????????
  ?????????, ??????????????? ?????????? ??????????
  ? ??? ???
• Compensation voluntary, negotiated, compatible
  with WTO Agreements, or
• ???????????? ???????? ??????? (???? ?????????)
• Suspension of concessions (retaliation)

18
VIII. ???????????? ???????VIII. Suspension of
concessions

• ???? ?????? / ?????? ?????? / ?????? ??????????
• Same sector / Other sector / Other Agreement
• ??????? ???????????? ????????????? ??????
  ????????????? ??? ?????????? ?????
• Level of Suspension equivalent to the level
  of nullification or impairment
• ????? ?? ???????????? ? ??????? 30 ???? ? ???????
  ????????? ????????? ???????
• Authorization to suspend within 30 days of end of
  reasonable period
• ???????? ?? ?????? ??? ?????????
• Arbitration on level or principles

19
IX. ????????????? ??????IX. Developing Countries

• ?????? ?????????
• Specific Provisions
• ?????? ?????????? ?????
• Composition of panels
• ???????????? ? ????????? ?????????? ?????
• Consultations and Panel procedures
• ??????????
• Implementation

20
IX. ????????????? ?????? (???????.) IX.
Developing Countries

• ???????? ???????? ??????
• Least-Developed Countries
• ????? ?????? ????????? ???????????? ???
  ??????????? ??? ?? ??????, ???????????
  ??????????? ? ?????????????
• Members must exercise due restraint in
  bringing disputes, compensation and suspension
• ?????? ???????? ?? ???? ?????? ?????
• Particular consideration at all stages of the
  dispute
• ???????? ?????? ? ?????? ??????
• Legal Assistance and Good Offices

21
X. ????? ? ??????????X. Facts and Statistics

• ????? 300 ?????? ? ?????? ???
• Over 300 disputes under the WTO
• ????? 100 ?????????? ????? (????????????
  ????????!)
• Around 100 panels (consultation works!)
• ? ?????? ???? ??????? ???????? ????????? ??
  ??????? ?? ??????? ?????, ?? ?????? ????
  ??????????? ????
• In early years parties appealed every dispute but
  rate of appeal is lower now
• ???????? 42 ??????? DC, ? ? 2000 ?. 65
  ??????? DC
• Approx. 42 DC participation and since 2000
  65 DC participation

22
X. ????? ? ??????????(???????????)X. Facts and
Statistics

• ???? ????? ?????? ???????? ?? (1) ????, ????? (2)
  ?????????? ? ?????????, (3) ?? ?????????
  ????????? ? (4) AD (??????????? ??????). ?????
  ???????? ?????? ?? ????? ? ????
• (1) GATT (most invoked) then (2) SCM, (3) AoA
  and (4) AD (much less). TRIPS and GATS rarely
  invoked
• ????? 10 ??????? ?????????????? ????? ??
  ????????????
• Less than 10 authorizations to suspend
• ????? ? ?????, ??????? ???????? ???????
• Conclusion the system is on the whole
  successful
• ????? ??????????, ??? ???? 47, ?????-?????????????
  ?, ?????-????????
• More effective than GATT 47, quasi-automatic,
  quasi-judicial
• ???? ?? ???????? ??????????? ???????
  ????????????? ?????? ????????????? ???????
• One of the more effective Dispute Settlement
  Bodies in international system

23
XI. ?????? ???????XI. Weaknesses

• ???????? ?? ????????????? ?????, ??????? ??? ???
  ?????????
• Despite deadlines, the system is still slow
• ????????
• Practices
• ?????????? ?????????/????????????? ???????
  ???????? ??????
• No provisional/interim relief
• ?????????? ??????????? ?? ??????????? ?????
• No compensation for the harm suffered
• ??????????? ???????? ?????????? ??????? ??
  ??????????? (????????????? ?????????)
• No reimbursement of legal fees for winning
  member (costly procedure)
• Difficult for some Members (DC/LDC) to resort to
  suspension of concessions

24
XII. ?????????? ???XII. DSU Negotiations

• ?????????? ?? ??????????? ?????? ? ?. ????
  ????????????????? ? ????????? ?????? ???? ????
  ????????? ? 2003 ?.
• Doha Declaration improvements and
  clarifications should have been concluded in
  2003
• ????????? ???????????
• Some ideas
• ?????????? ????? ?????????? ?????
• Permanent panelists
• ?????????? ???? ??????? ??????
• Enhanced third party rights
• ?????? ???????????? ???????? ??????????????
  ?????????????, ?????????, ???????? ???
  ??????????????, ?????????? ??????????? ?????????
• More transparency publicly available
  submissions, meetings open to public, amicus
  curiae briefs
• ????? ??????????? ? ?????????????? ?????????
• Remand authority
• ?????????????????? ??? ??????? ????????????
  ???????????? ??????? ????????? ??? ?????????
• Sequencing compliance panel and retaliation
  (which comes first?)

25
XII. ?????????? ??? (???????????)XII. DSU
Negotiations

• ?????????? ??????? ???????????
• Strengthening compensation
• ????????, ????? ??????????? ?? ?????? ?????
  ??????????? ??????????? ?????? ????????????? /
  ??????????
• Monetary, early right to compensate, front
  loading the determination of the level of
  nullification/impairment
• ????? ?? ?????????? ??? ?????????
• Authorization to retaliate
• ?????????????, ???????????? ?????????, ?????,
  ??????? ??????? ????????? ???????????
• Retroactive, collective retaliation,
  negotiable right

26
XIII. ?? - ?????XIII. EC - Sugar

• ?????
• Facts
• ???? ???????? ???, ??????????? ?? ? ?????????
  ?????????????? ???????? ??????? ????? ?????????
  ???????????? ?????? ??? ???????????? ?????? ? ??
• Dispute concerns EC measures re subsidization
  of sugar industry through the implementation of a
  comprehensive EC Sugar Regime
• ?????, ????????????? ?????????????? ???????
  ??????, ??????????????? ???? ??? ??????????????
  ????? , ??????????????? ??????????? ???? ??
  ?????? ?? ????? ??????, ?????????? ????????,
  ?????????????? ??????? ? ?????, ??????????
  ?????????? ???????? ? ???????? ??????? ?????
  ????? ?? ??????? ????? ? ?? ????? ??,
• Quotas, obligation to export excess sugar,
  intervention price for domestic market,
  guaranteed minimum price for imports from
  ACP/India, export refunds covering difference
  between world market price and EC price,

27
XIII. ?? ????? (???????????)XIII. EC - Sugar

• ????????????? ???
• WTO commitments
• ?????????? ?? ????????????? ?? ??????????
  ???????? ? ?????? 499 ???. ???? ? 1279 ???. ????
  ? ??????, ??????????? ????????????? ?? ??????????
  ? ????????? ?????? ?? ????? ??????, ??????????
  ????????, ?????????????? ??????? ? ?????
• EC Schedule export subsidy commitment of EUR
  499m and 1,273 m tons and footnote excluding
  reduction commitment on sugar of ACP/Indian
  origin

28
XIII. ?? ????? (???????????)XIII. EC - Sugar

• ????????????? ????? ???????? ?????? ??????????
  ??????
• AB Decision uphelds Panel report
• ?????? ?? ??????????? / ???????? ??????
  ???????????? ? ??????????
• Footnote does not enlarge/modify the EC
  commitment levels in Schedule
• ?? ?????????? ? ?????????? ????????? ?????? 3.3 ?
  8 ?????????? ? ???????? ?????????, ????????????
  ?????????? ???????? ?? ?????, ???????? ????
  ?????????????, ???????????? ???????????, ?, ?????
  ???????, ?? ?????????? / ??????? ??????, ???????
  ? ????????????? ????? ? ?????? ?????????? ?
  ???????? ?????????
• EC acted inconsistently with Art 3.3 and 8 of
  AOA by providing export subsidies on sugar in
  excess of its commitment levels in Schedule and
  EC nullifies/impairs the benefits accruing to
  complainants under AOA

29
XIII. ?? ????? (???????????)XIII. EC - Sugar

• ??????? ?? ?????? ???? ????????? ?????? ??????
  ? ?????????????? / ??????????? ?????? ?
  ????????????? ?? ????????????? ????????????? ?
  ????????? ?????? 9.1 ?????????? ? ????????
  ?????????
• Payments in the form of below cost C beet
  sales to C sugar producers/exporters are financed
  by virtue of governmental action contrary to Art
  9.1 (c) of AOA
• ???????????? ?????? ? ???????? ?????? ????????,
  ?????????????? ?? ????????????? ????????????? ?
  ????? ????????? ?????????? ???????? ?????
  ????????????? ?????????????? ? ??????????
  ???????, ?????????? ?? ?????? ?????? ? ? ? ?
  ???????? ????????? ?????? ??
• Production of C sugar receives a payment on the
  export financed by virtue of governmental action
  in the form of transfers of financial resources
  through cross-subsidization resulting from
  profits made on sales of A and B sugar and
  operation of EC sugar regime

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