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WTO Dispute Settlement Framework: An Outline of
Procedural Features |
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Paper Id :
19114 Submission Date :
2024-05-17 Acceptance Date :
2024-05-23 Publication Date :
2024-05-25
This is an open-access research paper/article distributed under the terms of the Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. DOI:10.5281/zenodo.13283203 For verification of this paper, please visit on
http://www.socialresearchfoundation.com/researchtimes.php#8
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Abstract |
Enforcement of WTO
obligations rest in its stronger dispute settlement mechanism, governed by ‘Dispute
Settlement Understanding’. The WTO offers amicable settlement of disputes
through mandatory consultation procedure and the failure of which enables the
member concerned to invoke dispute resolution process through panel and
Appellate Body. A unique feature of this dispute settlement system is the right
of third party in the panel and appellate processes, though it does not have
the right to appeal. The overall efficacy of the WTO dispute settlement
mechanism is based on the surveillance process the Dispute Settlement Body
maintains on the implementation of its ‘recommendations and rulings’. ‘Arbitration’
as an alternative mode of resolving dispute is also offered under this
mechanism, when the disputing parties mutually agree to have recourse to. |
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Keywords | GATT, WTO, DSU, DSB, Dispute Settlement, Consultations, Panel, Appellate Body. | ||||||
Introduction | Dispute resolution of
the World Trade Organization (WTO) involves a unique mechanism to resolve disputes
arising out of the execution of trade agreements between members. The WTO’s trade
agreements are categorised as multilateral trade agreements[1]
and plurilateral trade agreements[2].
When a dispute arises, it must at first be strived to be settled amicably by
members through a mandatory consultation process[3].
Members are expected to reach reciprocally agreed solutions leading to settling
the dispute. In case members fail to settle the dispute amiably, the member invoked
consultations can approach the WTO ‘Dispute Settlement Body’ (DSB)[4]
to set up a panel[5] for
resolving the dispute. In case the parties to the disputes do not agree with
the findings of the panel, they are free to appeal the panel report before the
Appellate Body (AB) whose decision will be final and binding, subject to the
adoption at DSB meeting. A distinguishing feature of the WTO dispute settlement
is the procedure laid down for the surveillance over carrying out the DSB ‘rulings
and recommendations’. Besides, the WTO offers an alternative mode of dispute
resolution in the form of arbitration upon mutual consent of the parties to the
dispute. Another striking feature of the WTO system of dispute resolution is non-violation complaint procedure. The paper primarily
examines the procedural features of ‘the WTO dispute settlement system’. It
first examines the nature of amicable settlement of disputes and then examines
the aspects of the setting up of WTO panel and its functioning. Next, process
of multiple complainants and rights of third parties are dealt with. Subsequently,
the paper, having analysed the aspects of interim review stage and adoption of
panel reports, focusses on appellate review by AB. The paper then dwells on the
critical aspects of implementation and surveillance of panel and AB rulings. Finally,
unique features of arbitration and non-violation complaints are discussed.
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Objective of study | 1. To examine the function and role of panels and
Appellate Body in resolving the disputes arising out of the operation of WTO
agreements 2. To scrutinize the procedural aspects of implementation
of ‘recommendations and rulings’ of the dispute settlement body |
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Review of Literature | Amicable Settlement of Disputes Under the ‘depute
settlement mechanism’ of the WTO it is hoped that recourse to dispute
settlement procedure by members not to be treated as contentious acts. The
basic purpose is to appreciate the efforts members make in ‘good faith’ in
resolving a dispute.[6]
Consultation is the first step in the direction of resolving the dispute.[7] Because
a bilateral ‘mutually agreed solution is clearly to be preferred’.[8] In the case of a dispute, the fundamental provision to seek consultations by a
member with another member is Art. XXII(1) of ‘the General Agreement on Tariffs
and Trade, 1994’ (‘the GATT’), which is an Annex 1A agreement of ‘the WTO
Agreement’ in conjunction with Art. 4 of the DSU. Member which is requested consultation is obligated to provide ‘sympathetic
consideration and adequate opportunity’ on any representation in respect of
which consultation is sought by a member.[9]
Art. 4 of the DSU specifically provides for various steps to be followed in the
consultations. As per Art. 4(3) of the DSU, unless otherwise the members concerned
mutually agree for a different time period, the member that is requested
consultations is required to get into consultations within 30 days period from
the date of the receipt of consultation request in order to reach a ‘mutually
satisfactory solution’. The consultations being confidential must be conducted without
affecting the rights regarding the members concerned.[10]
The failure of ‘consultations within a period of 60 days’ post the date of receipt
of consultation call may lead the member requesting consultations to approach ‘the
DSB to establish a panel’ for resolving the dispute.[11]
Art. 4(6) of the DSU states that the ‘consultations’ should be held confidentially
while not affecting any member’s rights in any further proceedings.[12] Besides, if
a member which is a non-party to the consultations feels that it possesses ‘a
substantial trade interest’ in the ‘consultations’ notified, it can inform ‘the
consulting members of its willingness to be joined in the consultations’, though
it can join the process of consultations only upon the member which is requested
consultations agreeing with its claim of ‘substantial trade interest’.[13]
However, if the request of that member is not accepted, then that is ‘free to
request consultations under Art. XXII(1) or Art. XXIII(1) of the GATT, 1994’ read with 'Art. 4 of the DSU'. In
case of achieving mutually agreed solutions, the same is required to be
notified to ‘the DSB and relevant Councils and Committees of the WTO’.[14]
As per Article 4(11) of the DSU, ‘consultations’ as a prerequisite to panel
adjudication can be requested by a member either under ‘Art. XXII(1) or Art.
XXIII(1) of the GATT, 1994’, or equivalent stipulations of other relevant agreements. |
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Main Text |
Setting up of Panel and its Functioning The complaining party if consultations fail can ask ‘the DSB to establish a panel’ to resolve the disputed issues. The DSB shall convene a meeting within a time-period of ‘15 days of such request’, with at least ‘10 days’ notice’ in advance to every member. Except ‘the DSB decides by consensus to not establish a penal’, the panel in the very DSB meeting is deemed to have been established.[15] Therefore, under the WTO dispensation, a panel establishment is ‘quasi-automatic’,[16] unlike the GATT, 1947 regime. The decision-making under Art. 6(1) of the DSU is based on negative consensus process, which is also called ‘reverse consensus’ process. During the GATT, 1947 panel used to be set up based on positive consensus decision making process. According to positive consensus, a GATT panel would be established only if all the ‘contracting parties’, including ‘the parties to the dispute’, would agree to establish a panel. Should any ‘contracting party’, including the ‘complaining party’ against which complaint was made, have objected to establish a GATT penal, then the panel was deemed to have not been established. Hence, owing to positive consensus procedure under the GATT regime, ‘the contracting party against which complaint was made’ could successfully block the setting-up of a GATT panel.[17] Precisely, while under the GATT dispensation consensus was required ‘to establish a panel’, under the WTO system of dispute settlement consensus is required to not establish a panel and therefore the latter is considered to provide for virtually an ‘automatic establishment’ of a WTO panel.[18] Persons who compose panels are ‘well-qualified individuals selected from a sufficiently diverse background and a wide spectrum of experience’, worked in various capacities, such as governmental or non-governmental positions, ‘served on or presented a case before a GATT panel’ or was state representative before the GATT/WTO or worked in the GATT/WTO Secretariat, a senior official on trade policy of a member or ‘taught or published on international trade law or policy’.[19] The composition goes with a rider that citizens of ‘disputing parties’ and ‘third parties’ should not function as a panel member, save the disputing parties agree on such nomination.[20] In this regard, ‘the Secretariat shall maintain an indicative list comprising governmental and non-governmental’ persons and roster of non-governmental panelists under the GATT regime and ‘other rosters and indicative lists established under any of the covered agreements of the WTO’.[21] According to Art. 8(5) of the DSU, the DSU gives a three-member panel, otherwise the parties agree, within ‘a period of 10 days’ since the setting-up of panel, for ‘a panel of five members’. WTO’s Secretariat recommends ‘nominations for the panel’ and in case of ‘no agreement on the panelists within 20 days after the date of establishment of a panel’, the Director General, ‘having consultation with the Chairman of the DSB and the Chairman of the relevant Council or Committee’, determines the panel composition by appointing the ‘most appropriate panelists’ after consulting the disputing parties as per ‘relevant special or additional rules or procedures of the covered agreement or covered agreements’ that are connected with the dispute.[22] Panelists are required to ‘serve in their individual capacities and not as representatives of government or of any organization’. In a dispute including a ‘developing country’ member, if it so requests the panel shall comprise in any case one panelist from a ‘developing country’ member.[23] In a dispute before it, the panel’s task is to provide ‘an objective assessment of the matter before it’ that must be based on ‘an objective assessment of the facts of the case and the applicability of and conformity with the relevant covered agreements’ along with further similar findings that support ‘the DSB’ with respect to drawing up ‘the rulings and recommendations’ in connection with the covered agreement to be notified for the disputing parties concerned.[24] Without causing undue delay into the process of the panel, it must be provided with enough flexibility in order to ‘ensure high quality panel reports’.[25] As per Art. 12(5) of the DSU, while fixing the time-table for the process of the panel, a clear time-limits must also be set by the panel for making ‘written submissions’ by the disputing parties and they must regard those deadlines. The party complaining must make its ‘first submission’ earlier to that of the opposite party save it is decided by the panel post consultations with the disputing parties that ‘the parties should submit their first submissions simultaneously’.[26] In its written report to the DSB, the panel gives its findings, setting out the case facts, the applicable stipulations and the basic reasons behind such findings and recommendations. In case the matter is found settled among the parties, the ‘panel report’ must comprise ‘a brief description of the case’, stating about the remedy that has been achieved.[27] As a general rule, under Art. 12(8) of the DSU, panel issues its report within 6 months, though in the situations of urgency, along with the cases of ‘perishable goods’, it is expected to issue the report within 3 months. However, if the panel finds that it cannot issue its ‘report within the specified time’, it can submit a request in writing to the DSB for additional time to submit the report, which in no case should exceed nine months.[28] If a developing country member is the responding party in a dispute, the panel shall provide enough time for preparing and presenting its arguments.[29] If the party complaining makes a request, the ‘panel may at any time suspend its work for a period not exceeding 12 months’ and as a consequence the time period for the panel to give its report must be proportionately extended. If the panel work remains suspended beyond 12 months, the DSB’s authority for the established panel lapses.[30] Though the parties are allowed to make written as well as oral submissions during the panel proceedings, subsequently panel report shall be written in the absence of disputing parties, as panel deliberations are confidential in nature. Moreover, views given by the panel members within the ‘panel report shall be anonymous’.[31] Multiple complainants and third parties Where the DSB receives requests from more than one member to establish a panel concerning the same matter, ‘a single panel’ needs to be formed to look into such complaints whenever practicable, considering ‘the rights of all members concerned’.[32] Panel must carry out its proceedings in a way the rights of each complaining member are not impaired that member would have enjoyed if separate panels were set up. Every complainant enjoys the right to remain present, when other complainant makes its submissions to the panel and the submissions of every complainant must be given to every other complainant.[33] However, when greater than ‘one panel’ is set-up for looking into the ‘complaints’ concerning the same subject-matter, ‘to the maximum extent possible the same panelists must serve on each of the separate panels’, besides in such disputes the ‘panel process’ must accordingly be harmonized.[34] Another vital feature of ‘the WTO dispute settlement system’ is third party rights. Any member having ‘a substantial interest in the subject matter of a dispute’ while not being a disputing party can still notify the DSB to take part in the panel proceedings. Such a member is referred to as ‘third party’ in the dispute. Unlike the consultation process where a member having ‘a substantial trade interest’ can join the consultations only with the consent of the member for which consultation request is made, under Art. 10 of the DSU if the member concerned notifies the DSB its interest to join the panel proceedings, it shall be joined in the proceedings as a ‘third party’. Third party must get the submissions made by the disputing parties. It has ‘the right to present written submissions before the panel’ and the same must be provided to the disputing parties and must be the part of the final report.[35] Though the ‘third party’ does not have the right to appeal, it must be given an opportunity of being heard, both orally and written, before the AB when the disputing parties appeal the ‘panel report’.[36] Interim review and adoption of panel reports At interim review stage, as per Art. 15(1) of the DSU, descriptive part of ‘draft report’ comprising factual aspects and arguments is given by the panel to the parties once the rebuttal submissions and oral arguments are complete and then the parties can give their written comments within the time-period established by the panel. Thereafter, ‘interim report’ is given to the parties, which comprises the ‘descriptive parts and the findings and conclusions of the panel’. Still a party may request in writing the panel to review ‘precise aspects of the report’. Panel needs to talk to the parties on such issues. After the comment period, the ‘interim report’ will be considered as ‘the final panel report’ and circulated to all the members.[37] Panel report does not have the binding force by itself. It becomes binding and enforceable only when it gets adopted at the meeting of the DSB. Nevertheless, as per Art. 16(1) of the DSU, 20 days’ time must be allowed to members to go through the ‘panel report’ before the DSB convenes a meeting for adopting the report. Subject to Art. 16(1) of the DSU, the panel report shall be adopted at a DSB meeting within a 60 days’ time period post the date of its circulation to members, unless ‘a party to the dispute officially informs the DSB of its decision to appeal the panel report or the DSB resolves by consensus not to adopt the panel report’.[38] In case of appeal, panel report must be adopted when AB report gets adopted, following the successful completion of appeal process. The ‘panel report’ is adopted under Art. 16(4) based on negative consensus procedure, also known as reverse consensus procedure, as followed for the setting up of the panel under Art. 6(1) of the DSU.[39] Appellate Procedure Under Art. 17(1) of the DSU the WTO comprised ‘a standing Appellate Body’, which hears appeals from panel cases, comprising ‘seven persons, three of whom serve on any one appeal in rotation’. The WTO appellate process is a distinct process, unique to any international adjudication, which was absent under the GATT regime. In line with Art. 17(2) of the DSU, AB members must serve in rotation; they are selected for a four-year period and are eligible for reappointment once. Those members should be of recognised authority having ‘established expertise in law, international trade and subject matter of the covered agreements concerned in general’, reflecting a broad representation of WTO membership. Besides, they must not be ‘affiliated with any government and must not partake in any dispute potential to create a direct or indirect conflict of interest’.[40] It is required for AB ‘to circulate its report within a period of 60 days from the date a disputing party formally informs its decision to appeal the panel report’. If AB cannot issue its report within a period of 60 days, it must write to the DSB the causes of delay along with an estimate of period for providing report but such a period must not be more than an overall 90 days’ period from the day of appeal.[41] The appeal is subject to ‘issues of law dealt with and legal interpretations made by the panel’ as reflected in its report.[42] AB may ‘uphold, modify or even reverse the legal findings and conclusions’ given by the panel.[43] With regard to appellate review process, AB draws-up procedures for working after consulting the ‘DSB chairman’ and the ‘Director-General.’[44] Like panel proceedings, in accordance with Art. 17(10) of the DSU, ‘the AB proceedings are confidential’ in nature and its reports are written in the absence of parties in view of the information supplied and statements given. Opinions of AB members in the report are treated anonymous.[45] Within 30 days following the circulation of AB report to members, it is required to be ‘adopted by the DSB and the parties must accept it unconditionally, unless the DSB by consensus decides not to adopt the report’.[46] It indicates that adoption of AB report is also based on negative consensus process like the case of panel report adoption. To add, during the AB report gets adopted, the panel report also needs to get adopted at the DSB meeting, as in the case of appeal panel report does not get adopted at the completion of panel process. Either of the disputing parties cannot make ‘any ex parte communications’ before panel and AB on the issues being considered under the dispute.[47] Any written submissions made before the panel or AB must be regarded to be confidential though the same must be made available to the disputing parties. While parties can make public their own position on the dispute, they are required to treat the information provided by other parties before the panel or AB to be confidential. Besides, the parties, if requested, must issue ‘a non-confidential summary of the information’ submitted to panel or AB, which can be placed for the public information.[48] It is crucial to see that AB is not functioning at present owing to the situation of vacancies. This situation arose way back in 2019 due to ‘the blocking of appointment of members to the AB’ by the United States. The US blocked the reappointment of AB members since 2016[49], as it started feeling the ‘judicial overreach’ by AB, especially in connection with the cases concerning it. Under the Barak Obama Administration the US blocked the reappointment of a South Korean in AB.[50] Later, the Donald Trump administration successfully blocked the appointment and re-appointment of members in AB.[51] This has led may members notifying the DSB of their appealing panel report and as a result it cannot be adopted till the appeal process is complete. As currently any appeal is not possible to be decided by AB, it leads technically to a stalemate situation where it is not possible to implement the panel report, thereby dispute settlement system coming to a standstill. In this way the countries that lost the dispute can informally prevent the implementation of the panel report as the dispute hangs in appeal. Certain members have taken some alternatives, such as Indonesia and Vietnam agreeing not to appeal panel report[52] and some other members went for ‘voluntary arbitration’, officially being called ‘Multi-party Interim Arbitration Arrangement (MPIA)’, as per Art. 25 of the DSU, till the AB resumes functioning.[53] The first use of this system is made by Columbia in DS591, a dispute brought by European Union against Columbia’s anti-dumping measures on frozen fries from Belgium, Germany and the Netherlands. [54] Implementation of ‘Recommendations and Rulings’ of the DSB In the absence of mutual agreement by the ‘disputing parties’ otherwise, the period from the date of formation of panel till ‘the DSB considers the panel or AB report for adoption shall not generally exceed 9 months’ if the parties do not appeal ‘panel report’, or 12 months when the report is appealed. Nevertheless, the additional time taken by the panel under Art. 12(9) or the AB in accordance with Art. 17(5) to issue the report must be added to the above-mentioned time periods.[55] A striking aspect of WTO dispute settlement system is the surveillance the DSB maintains on the implementation of ‘recommendations or rulings’ specified in the adopted panel and / or AB report by the party that lost the dispute. ‘Prompt compliance with recommendations or rulings of the DSB’ by the party that lost the dispute is vital so as to guarantee effective resolution of disputes.[56] Such compliance is effective when the party that lost the dispute makes immediate withdrawal of the domestic measures that are found by the panel or AB incompatible with the requirements of the covered agreements concerned.[57] So, as per Article 21(3), the party that lost the dispute is required to apprise the DSB of its intentions to carry out the ‘recommendations or rulings’ at a meeting of the DSB conducted within ‘30 days’ subsequent to the panel or AB report’s adoption. If the party that lost the dispute finds it not practicable to implement forthwith the ‘recommendations or rulings’, it gets a reasonable time for complying with the same. Such ‘reasonable period of time’ must be either (a) ‘the period of time proposed by the party that lost the dispute’, provided that the DSB approves it, or in the case of no such approval, (b) ‘a period of time both the parties to the dispute mutually agree within 45 days after the DSB adopts panel or AB recommendations or rulings’, or no such agreement therein, (c) ‘a period of time established through binding arbitration within 90 days after the DSB adopts panel or AB recommendations or rulings’.[58] While determining the reasonable period of time in accordance with Art. 21(3)(c) of the DSU, the arbitrator is guided that such time does not surpass ‘15 months from the date of adoption of the report of panel or AB’. Nevertheless, the additional time taken by the panel or AB in providing its report must be added to the period of 15 months, but the total time-period must not go beyond 18 months, unless under exceptional circumstance if the disputing parties mutually agree for a lengthier period of time.[59] The DSB surveillances over the carrying out of ‘recommendations or rulings’ by the party concerned. Art. 21(6) of the DSU allows any ‘member’ at any time post the ‘adoption’ of the report to raise any issue regarding its implementation by the party concerned and after 6 months subsequent to the date of setting-up of ‘reasonable time period’ any implementation issue will remain on the DSB’s agenda till it is settled. Nevertheless, during the implementation of the DSB ‘recommendations or rulings’, if the party that won the dispute disagrees with the ‘existence or consistency’ of the complying measure resorted to by the other party, the said dispute must be resolved by having resorted to dispute resolution procedure prescribed under the DSU, wherever possible to be settled by the original panel within a time period of 90 days, except in the case of delay where the panel requests the DSB additional time to circulate the report.[60] Art. 22 of the DSU provides for a compensation as a temporary measure to be granted by the party that lost the dispute to the other party that won the dispute in the event that the former has not yet complied with the DSB ‘recommendations or rulings’ within the determined reasonable time period. Compensation is not as such a monetary compensation; rather it is a trade-off between the ‘disputing parties’ if they mutually agree on the same. The party that lost the dispute cannot however be obligated to grant the compensation; it is voluntary being a provisional measure and, if given, must be according to the ‘covered agreements’.[61] The only obligation that binds the party that lost the dispute is that it is bound to enter into negotiations, if requested, before the completion of reasonable time period, with the other party to develop a mutually agreeable compensation and not anything beyond it.[62] When no ‘mutually satisfactory compensation’ is agreed upon by the parties within 20 days following the expiry of reasonable time period already set, the party that won the dispute can demand the DSB to authorize it to halt the ‘concessions or other obligations’ under the ‘covered agreements’.[63] Nevertheless, it is significant to note that ‘either compensation or the suspension of concessions or other obligations’ is not preferred to full implementation of the DSB ‘recommendations or rulings’.[64] The party so authorized while going for suspending the concessions or other obligations is required to follow the principles and procedures enumerated under Art. 22(3) of the DSU. The authorized party, which won the dispute, must ‘first seek to suspend concessions or other obligations’ against the other party, which lost the dispute, under the same sector where an infringement has been found. If it is not realistic or effective to ‘suspend concessions or other obligations’ under the same sector, then the authorized party can go for suspending ‘concessions or other obligations’ in ‘other sectors of the same agreement’. However, if the authorized party finds it ‘not practicable or effective to suspend concessions or other obligations in other sectors of the same agreement’ and situations are severe enough, it can go for suspending ‘concessions or other obligations’ under another covered agreement.[65] Besides, the authorized party must take into consideration the trade, the broader economic elements concerning ‘the nullification or impairment and the broader economic consequences of such suspension’.[66] The level of the ‘suspension of concessions’ must correspond to the level of the violation, provided such suspension is not prohibited by the covered agreement concerned.[67] Nevertheless, should the party concerned opposes the suspension level, or it alleges that the procedures provided under para 3 are not observed while grating the suspension of obligations, the matter must be referred to ‘arbitration’, if feasible, by the ‘original panel’ that decided the dispute, or by an ‘arbitrator’ chosen by the WTO ‘Director-General’. The ‘arbitration’ must conclude within 60 days’ period following the date of expiration of reasonable time-period.[68] The ‘disputing parties’ must agree with the decision of the arbitrator as final and no second arbitration is permissible.[69] Arbitration and Non-violations Art. 25 of the DSU provides for speedy ‘arbitration within the WTO dispensation’, as an alternative mode of settling disputes, if both the disputing parties mutually agree to have ‘recourse to arbitration procedures’ to be followed therein.[70] Other members can join the arbitration proceedings if the arbitrating parties agree. The award issued under arbitration is final and binding upon the parties. Arbitration award must be notified to ‘the DSB and the relevant council or committee’ for members’ information, in which any member can raise any opinion thereto.[71] Once arbitration award is notified, Arts. 22 and 23 of the DSU will apply ‘mutatis mutandis’ in respect of implementation surveillance of the award and ‘compensation and suspension of concessions or other obligations’ the DSB allowed.[72] Besides, the DSU provides for two more distinct features of settlement of disputes like its predecessor the GATT, 1947 in the form of ‘non-violation complaint’ procedure and ‘situation complaint’ procedure.[73] However, it needs to be noted that while only few ‘non-violation complaints’ are settled under the ‘GATT/WTO’ regime, no situation complaint has so far successfully been brought before the regime. Remedy under non-violation complaint is treated as an exceptional instrument of dispute settlement, as it is aimed at settling a dispute arisen with regard to a domestic measure of a member even when it does not violate any covered agreement of the WTO. Precisely, though there is no infringement by national measure of a member, a non-violation compliant with a detailed justification can be filed by another member if the latter is aggrieved by the measure that ‘nullified or impaired the benefits’ it could have availed from the relevant covered agreement.[74] Under a non-violation complaint, ‘a panel or the AB can only make rulings and recommendations’ and as there is no violation by the domestic measure, member concerned is under no obligation to withdraw it and becomes the subject-matter of a mutually satisfactory adjustment, including voluntary compensation. In other words, unlike the cases of violations, the ‘rulings and recommendations’ of a panel or AB in a ‘non-violation compliant’ is not subject to DSB’s implementation linked by ‘surveillance and suspension of concessions’ as per Arts. 21 and 22 of the DSU.
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Conclusion |
The
settlement of disputes at the WTO has been a unique process involving two
stages, the first being amicable settlement of disputes and the second being the
panel process, if challenged by the aggrieved member leads to appellate
process. The entire system is envisaged to be a flexible
process in terms of time-frame for settling the dispute, even allowing both the
disputing parties, if they mutually agree, to go for a larger period of time. One
of the distinct processes of dispute settlement is third party rights, which
are available at panel process and appellate process in the case of appeal by
the disputing parties. This will not only help third-party members submit their
points of view before the dispute resolution bodies but, in the case of
satisfactory solution, also make such third parties to avoid moving the DSB separately
for a dispute settlement. Owing to negative consensus procedure, the formation
of panel and ‘adoption of panel and AB reports’ have become unhindered and
swifter. The surveillance process the DSB keeps has made the WTO dispute
settlement mechanism efficacious at the domestic level of members. At this
moment, a worrisome fact is the dysfunctional AB, though unavoidable disputes
are still brought before the panel. It is hoped that the political AB deadlock breaks
soon and the dispute settlement mechanism returns to
its normal efficacy. |
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References |
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