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    Dispute Settlement Under Gatt and W To

    Uploaded by

    RaGa JoThi
    The document summarizes the key components and procedures of dispute settlement under the WTO. The main components are the Dispute Settlement Body (DSB), which oversees the process, the Director General's "good offices," expert panels that investigate disputes, and an Appellate Body that reviews panel reports. The procedures involve consultation, panel establishment if consultations fail, panel review and report, possible appeal, implementation of rulings, and if non-compliant, authorization of retaliation in the same sector or agreement. The goal is for members to work together to find mutually agreeable solutions, but the process allows enforcement through retaliation if needed.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Dispute Settlement Under Gatt and W To

    Uploaded by

    RaGa JoThi
    60 views14 pages
    The document summarizes the key components and procedures of dispute settlement under the WTO. The main components are the Dispute Settlement Body (DSB), which oversees the process, the Director General's "good offices," expert panels that investigate disputes, and an Appellate Body that reviews panel reports. The procedures involve consultation, panel establishment if consultations fail, panel review and report, possible appeal, implementation of rulings, and if non-compliant, authorization of retaliation in the same sector or agreement. The goal is for members to work together to find mutually agreeable solutions, but the process allows enforcement through retaliation if needed.

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    Dispute Settlement Under Gatt and w To

    Original Title

    Dispute Settlement Under Gatt and w To

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    The document summarizes the key components and procedures of dispute settlement under the WTO. The main components are the Dispute Settlement Body (DSB), which oversees the process, the Director General's "good offices," expert panels that investigate disputes, and an Appellate Body that reviews panel reports. The procedures involve consultation, panel establishment if consultations fail, panel review and report, possible appeal, implementation of rulings, and if non-compliant, authorization of retaliation in the same sector or agreement. The goal is for members to work together to find mutually agreeable solutions, but the process allows enforcement through retaliation if needed.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    60 views14 pages

    Dispute Settlement Under Gatt and W To

    Uploaded by

    RaGa JoThi
    The document summarizes the key components and procedures of dispute settlement under the WTO. The main components are the Dispute Settlement Body (DSB), which oversees the process, the Director General's "good offices," expert panels that investigate disputes, and an Appellate Body that reviews panel reports. The procedures involve consultation, panel establishment if consultations fail, panel review and report, possible appeal, implementation of rulings, and if non-compliant, authorization of retaliation in the same sector or agreement. The goal is for members to work together to find mutually agreeable solutions, but the process allows enforcement through retaliation if needed.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 14

    DisputeSettlementunderGATTandWTO

    Understanding on Rules and Procedures Governing the


    Settlement of Disputes

    The main components of the WTO dispute settlement system


    are as follows:

    DisputeSettlementBody(DSB)

    GoodOffices oftheDirectorGeneral

    ExpertReviewGroup(ERG)
    DisputesPanel
    TheAppellateBody.

    DisputeSettlementBody
    The DSB is the body that has overall charge of the dispute
    settlement
    mechanism.ItisineffecttheGeneralCouncilinadifferentguise,andconsis
    ts of arepresentative fromeachmember.
    ItistheDSBwhichmustultimatelydecide
    whetherornotaMemberhasbrokenanyrulesgoverningtheWTOAgreeme
    nt oroneofthe
    MultilateralTradeAgreements.Incarryingoutthisrole,theDSBis
    variouslyassistedbythegoodoffices oftheDirector General
    ,theDisputesPanel andtheAppellateBody.

    GoodOfficesoftheDirector

    General

    Thedisputingpartiescanaskforhisintervention.But,theadviceoftheDire
    ctor Generalandhisassistantsisnotbindingandcannotbecitedin
    alaterDisputes Panelreport.

    DisputesPanel

    independent panellists,

    three to five

    The Dispute Panel is established by the DSB, and consists of

    with a sufficiently diverse background and a wide

    spectrum of experience. ( they could be government or non


    government

    individuals)

    The task of the Disputes Panel


    istoinvestigatethoroughlythefactsofthe

    dispute,takingintoaccountthetermsoftheparticularagreementallegedt
    obe
    nthe

    breached. Itmustconsultwithbothpartiestothedisputeinordertogai

    fullest understanding possible of the problem and should encourage


    them to reachamutuallyacceptable
    solution,ifatallpossible.Wherethetwopartiestoa
    disputehavefailedtoreachanacceptableagreementduringtheinvestigatio
    n,

    the Dispute s Panel will present a written report to the DSB


    settingoutits

    findingsoffactbasedonrelevantagreementprovisionsanditsreasoningb
    ehind

    ExpertReviewGroup

    itsrecommendations.

    icalnature

    WhereaDisputePanel isconsideringamatterofaparticularlytechn

    it may, with the consent of both parties to the dispute, establish an


    ERG to provide it with assistance.
    TheERGsreportisofanadvisorynatureonly,
    1

    although it will obviously carry considerable weight when it comes


    to the DisputePanelpre sentingitsoverallfindingstotheDSB.
    TheAppellateBody
    WhereapartytoadisputedisagreeswithaDisputePanelrecommendation
    ,it can appeal to a standing Appellate Body, established by the DSB.
    The appeal, however,islimitedtoissuesoflawcover
    edintheDisputesPanelreportandthe
    legalinterpretationdevelopedbytheDisputesPanel.
    TheAppellateBodyiscomposedofsevenpeoplewhowillserveforafourye
    ar
    Body

    term. Only three of the seven will serve on any one case. The
    Appellate

    representatives must be people of recognized standing in the field of


    law and

    internationaltradeandnotbeaffiliatedtoanygovernment.Theyareappoi
    nted

    on the basis of a joint proposal forwarded by the Director


    General, the DSB

    ChairmanandtheChairmanof
    theGeneralCouncilandtheTradeCouncils.

    Its proceedings will be confidential, based on information already


    provided in

    thedisputeandwithoutthepresenceofeitherparty
    .Afterhavingreviewedthe

    evidence,theAppellateBodyreportstotheDSB.Its
    findingsmustbeacceptedby

    thepartiestothedisputeunlesstheDSBdecides,byconsensus,nottoadop
    tthe report.1

    Proceduresof WTOdisputesmechanism
    Step1

    The aggrieved Member should make a request for consultation with


    the offendingMember.Ther equestmustbesenttotheDSBinwriting.

    Step2

    A reply should be made by the offending Member within 10 days


    unless otherwisemutuallyagreed.
    Consultationsshouldcommencewithin30daysof theoriginalrequest.
    Inurgentsituationinvolvingperishabl egoodsthereplyand
    commencementofconsultationsshouldtakeplacewithin10daysoftheori
    ginal request.

    Step3

    WherebothpartiesagreethecasecanbebroughtbeforetheDirector
    General andthegoodofficesproceduremaycontinuewhiletheDisputes
    Panelprocessis inprogress,providedbothpartiesagreetoit.

    TheUruguayRoundagreementhas madeitimpossibleforthecountrylosinga
    casetoblockthe adoptionoftheruling.
    UnderthepreviousGATTprocedure,rulingscouldonlybeadoptedby
    consensus,meaningthatasingleobjectioncouldblocktheruling.Now,rulingsareautom
    atically adoptedunlessthereisaconsensustorejecta ruling
    anycountrywantingtoblockaruling
    hastopersuadeallotherWTOmembers(includingitsadversaryinthecase)toshareitsvie
    w.

    Step4

    Ifnoresponsetoarequestforconsultationsisreceivedwithin10daysor,ifth
    e
    consultationsfailtoachieveasolutionafter60days,thecomplainantcana
    skthe DSBtoestabli shaDisputesPaneltoexaminethecase.

    Step5

    A Dispute Panel is to be constituted within 20 days of the DSBs


    decision to
    establishit.Wherethepartiestothedisputecannotagree,within20days,o
    nthe panellistsnominatedbytheSecretariat ,theDi rector
    Generalinconjunctionwith
    theChairmanoftherelevantCouncil/Committee,willdecidetheappointm
    ents.

    Step6

    TheDPshouldcompleteitsexaminationofthecaseandproduceafinalrepo
    rt within six months and for urgent cases such as those relat ing to
    perishable goods,within threemonths.
    Itshouldnevertakemorethanninemonths.

    Itshallthroughoutthecourseofitsinvestigations,toencouragetheparties
    to
    thedisputetosettlethemattervoluntarily.

    Step7

    AftertheDPhasconsideredthe
    writtenandoralevidenceofbothpartiestothe
    disputeitwilldistributethefactualandargumentsectionsofitsreporttoth

    e partiesfortheirperusal . Theparties
    willthensubmittheirwrittencomments
    withinaprescribedtimeperiodsetbythepa nel.

    Step8

    The DP shall provide the Interim report of its findings and conclusions
    to the
    partiesandthepartiescanrespondtotheinterimreport.Ifnoresponse,thenit
    willbeconsideredasthefinalreport.

    Step9

    Thefinalreportissubmittedtoth eDSBwhoshouldadoptit within60days


    of
    issuanceunlesseitheroneofthepartiestothedisputeindicatesthatitinten
    dsto appeal or a consensus emerges in the DSB against adoption. It
    involves circulationofreporttotheotherMembers ,discusseda
    ndadopted.

    Step10

    ProvidednoappealhasbeenlodgedagainsttheDPreportandthatthereisn
    o consensus against adoption, the DSB will automatically approve
    the Panels recommendationsattheadoptionmeeting.

    Step11

    Appeal to the standing Appellate B ody. The Appellate Body will


    review the
    existingevidenceandshouldaimtoreporttotheDSBwithitsfindingswithi
    n 60 daysandnotmorethan 90days.

    Step12

    TheDSBmustadopttheAppellateBodyreportwithin30daysofissuance,u
    nless there is conse nsus against adoption. Bothpartiestothe dispute
    are bound to
    accept,unconditionally,therecommendationsoftheAppellateBody.

    Step13

    AftertheadoptionoftheAppellateBodysrecommendation,theoffending
    party must state its intentions in respect of the implementation of
    the DSBs recommendation.

    Step14

    The DSB will allow the offending party a reasonable period of time to
    implementtherecommendations,whichshouldnotnormallyexceed15mont
    hs.

    Step15

    itmust

    enter in to negotiations with the complainant inordertodecideona


    mutuallyacceptablelevelofcompensation.

    Ifapartyfailstocomplywiththerecomm
    2

    endationwithinthesett ime,

    Step16 (retaliatoryaction)

    to suspend concessions or obligations

    If no acceptable level of compensation has been agreed, the complainant may

    dueto theoffendingparty

    request authorization from the DSB

    Step17
    undertheparticularagreementinquestion.

    TheDSBshouldgranttherequestforsuspensionofconcessionsorobligati
    ons, within30daysunlessth ereisaconsensusagainstdoingso.

    Step18(Arbitration)

    Iftheoffendingpartyobjectstothelevel
    ofsuspensiongranted bytheDSB,itcan
    request that the matter be sent to arbitration
    (consistingoforiginalDispute

    Panelsmembersoranarbitrator appointedbyDirector
    General).Thearbitration processshouldbecompletedwithin
    60daysanditsdecisionisfinal.

    Step19

    Onrequestfromthecomplainant,theDSBwillthenauthorizethesuspensi
    onof concessions as recommended by the arbitration board , unless
    there is a consensusagainstsodoing.

    TheWTO
    hasnolegalpowerstoforcetheoffendingpartytoimplementtherecommendations

    of the Dispute Pa nel or the Appellate Body party by any means like sanctions or
    penalty .
    Ultimately,theWTOsenforcementpowersrestinpersuasionandinmor
    alforceofits argument,

    orthestrengthoftheMemberadoptingretaliatoryaction.

    Inprinciple,theDSB(orarbitrationbody)shouldauthorizeorrecommend
    the

    suspensionofconcessions,inthesamesectorofanagreement.However,
    ifthisis
    not practicable or does not produce the desired
    effect, authorization may be
    grantedtosuspendconcessionsinadifferentsectorofthesameagreeme
    ntor, wherethecircumstancesareseriousenough
    ,underanotheragreement.

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