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WTO Dispute Settlement System Mechanisms

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Abstract

For global peace and prosperity, an open rule-based trading system, based on principles of non-discrimination, progressive liberalisation of tariffs, and rule of law could be of great help.

Keywords

  • Dispute Settlement
  • Appellate Body
  • Montreal Rules
  • Article XXI
  • Compliance Panel

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Notes

  1. 1.

    Kenneth W. Dam. The GATT And International Economic Organisation 352 (1977).

  2. 2.

    See John H. Jackson, World Trade and the Law of GATT 164 (1969).

  3. 3.

    See generally, A.K. Koul, Settlement of Disputes in International Trade, I. N.C.L.J. (46-48) (1996);—WTO Dispute Settlement Mechanisms: A Fresh Look, XXV, Delhi Law Review 47–102 (2003).

  4. 4.

    For an overview on the developments in the dispute settlement mechanisms in GATT, See John H. Jackson, Legal Problems of International Economic Relations: Cases, Materials and Text, 327–371 (3rd ed. 1995); Robert Hudec, The GATT Legal System and World Trade Diplomacy, (2nd ed. 1990);—Enforcing International Trade Law: The Evolution of the Modern GATT Legal System (1993); Pierre Pescartore, The GATT Dispute Settlement Mechanism, 27 Journal of World Trade 6–20 (1993).

  5. 5.

    Agreed Description of the Customary Practice of the GATT in the Field of Dispute Settlement (Article XXIII:2); BISD 26S/215, 217.

  6. 6.

    BISD 29S/13, 15.

  7. 7.

    See GATT, Analytical Index prepared by E.U. Petermann (1989) of Article XXIII. Also see, Armin Von Bogdamdy, The Non-Violation Procedure of Article XXIII: 2, GATT: its Operation and Rationale, 29 Journal of World Trade 95–111 (1995).

  8. 8.

    See cases referred in John H. Jackson, World Trade and the Law of GATT, 181–187 (1969).

  9. 9.

    See the case of US Taxes on Petroleum and Certain Imported Substances, 34th Suppl. BISD 136 (1998). Panel Report Adopted on 17 June 1987.

  10. 10.

    See Armin Von Bogdamdy, supra at 7, p. 101.

  11. 11.

    Hudec, Enforcing International Trade Law, supra note 4, at p. 27.

  12. 12.

    BISD 36S/61 hereafter referred as ‘Montreal Rules’.

  13. 13.

    Ibid. 12.

  14. 14.

    John H. Jackson, The Crumbling Institutions of the Liberal Trading System, 12 Journal of World Trade Law 98-101 (1978);—Governmental Disputes in International Trade Relations: A Proposal in the Context of GATT, 13 Journal of World Trade Law 3–4 (1979);—The World Trading System, 111 (2nd ed. 1998).

  15. 15.

    Ian Sinclair, The Vienna Convention on the Law of Treaties, 115 (2nd ed. 1984).

  16. 16.

    D.J. Kuyper, the Law of GATT as a Special Field of International Law: Ignorance, Further Refinement or Self-Contained System of International Law, 25. Netherlands YIL 227(1994).

  17. 17.

    Article 32 of the Vienna Convention on the Law of Treaties.

  18. 18.

    See, for example, EC Measures Concerning Meat and Meat Products (Hormones), Complaint by Canada, Appellate Body Report, WT/DS26/AB/R, WT/DS48/AB/R, DSR 1998: 1, para. 165.

  19. 19.

    Guatemala—Anti-dumping Investigation Regarding Portland Cement from Mexico, Appellate Body Report, WT/DS60/AB/R, DSR 1998: IX, para. 64.

  20. 20.

    WTO Agreement, Article IV: 3.

  21. 21.

    DSU, Article 17.

  22. 22.

    Ibid Article 17.

  23. 23.

    Ibid Article 8.

  24. 24.

    US 301-310 of the Trade Act of 1974, Panel Report, WT/DS152/R, Adopted 27 January 2000, para. 7.7.5.

  25. 25.

    Japan—Taxes on Alcoholic Beverages, Appellate Body Report, WT/DS8/AB/R, para. 31.

  26. 26.

    EC-Regime for the Importation, Sale and Distribution of Bananas, Appellate Body Report, WT/ DS27/AB/R; DSR 1997:II, para. 5.1.9.

  27. 27.

    Turkey—Restrictions on Imports of Textiles and Clothing Products, Panel Report WT/DS34/R, Adopted 19 November 1999.

  28. 28.

    Article 4 of DSU.

  29. 29.

    United States—Denial of MFN Treatment as to Non-rubber Footwear from Brazil, BISD 39S/128, 147–148 (Adopted June 1992).

  30. 30.

    USA—Anti-Dumping Duties on Imports of Fresh and Chilled Atlantic Salmon, BISD 415/ 229, (30 November 1992) (Adopted on 27 April 1994).

  31. 31.

    Japan—Taxes on Alcoholic Beverages, WT/D58/R, WT/DS/10/R; Adopted on 1 November 1996.

  32. 32.

    GATT, BISD, 30S/129 (1983).

  33. 33.

    GATT, BIDS, 30S/140 (1983).

  34. 34.

    GATT, BISD, 39S/128 (1991).

  35. 35.

    India—Patent Protection for Pharmaceutical and Agricultural Chemical Products, Appellate Body Report, WT/DS50/AB/R, DSR 1998:1, para. 94.

  36. 36.

    Article 6 of the DSU.

  37. 37.

    Supra note 26, para. 7.13.

  38. 38.

    Korea—Definitive Safeguards Measures on Imports of Certain Dairy Products, Appellate Body Report, WT/DS98/AB/R, para. 7.13.

  39. 39.

    Panel Report on Japan—Measures Affecting Consumer Photographic Film and Paper, WT/DS44/ R Adopted 22 April, 1998; para. 10.52.

  40. 40.

    Ibid , paras. 10.55–10.56.

  41. 41.

    EC-Customs Classification of Certain Computer Equipment, Appellate Body Report, DSR1998: V, para. 65.

  42. 42.

    Article 7 of DSU.

  43. 43.

    Appellate Body Report on Brazil–Desiccated Coconut Case; WT/DS22/AB/R, DSR 1997: 1, p. 21.

  44. 44.

    Japan—Taxes on Alcoholic Beverages, Appellate Body Report, WT/DS8/R, WT/DS10/R and WT/ DS11/R (11 July 1996), para. 65.

  45. 45.

    Supra note 26, para. 7.57–7.58.

  46. 46.

    India—Patent Protection for Pharmaceutical and Agricultural Chemical Products, Appellate Body Report, WT/DS50/AB/R; DSR 1998: 1, para. 94.

  47. 47.

    US—Anti-dumping Act of 1916, Complaint by the EC, WT/DS136/AB/R, paras. 138–150.

  48. 48.

    Supra note 18, pp. 132–138.

  49. 49.

    US—Measures Affecting Imports of Woven Wool Shirts and Blouses from India, Appellate Body Report, WT/DS33/AB/R.

  50. 50.

    Article 13.2, DSU.

  51. 51.

    Article 12.3, DSU.

  52. 52.

    Article 12 read with Appendix 3, DSU.

  53. 53.

    Article 12: 11, DSU.

  54. 54.

    Article 15, DSU.

  55. 55.

    Article 16, DSU.

  56. 56.

    Article 18, DSU.

  57. 57.

    Article 19, DSU.

  58. 58.

    Article 22.1, DSU.

  59. 59.

    Article 22.

  60. 60.

    Article 22.4.

  61. 61.

    Article 22.6.

  62. 62.

    Article 22.6 and 22.7.

  63. 63.

    Article 22: 87.

  64. 64.

    Article 22: 9.

  65. 65.

    Article 26.1.

  66. 66.

    Article 26: 2.

  67. 67.

    In fact, the WTO and its Members never regarded the DSU as an unchallengeable discipline, and in early 1994, WTO members in Marrakesh Ministerial Conference had requested the review to be closed by 1 January 1997. In the Doha Ministerial Conference negotiations 20 November 2001, the sentiments of DSU reform were affirmed and negotiations for reform were to be settled by May 2003 which was further discussed in Cancun Ministerial Conference of 31 August 2003 extending the deadline for reforms to May 2004 and the deadline has been further extended.

  68. 68.

    See Proposed Amendment of the DSU, WT/Min (99)8, submitted by the Government of Japan on behalf of co-sponsors Canada, Costa Rica and others.

  69. 69.

    WT/GC/W/162.

  70. 70.

    WT/GE/W/162.

  71. 71.

    World Trade Agenda, no 00/22, 4 December 2000, p. 1.

  72. 72.

    See Annex to TN/DS/9 Chairman’s Text, 28 May, 2003.

  73. 73.

    Ibid. Ibid.

  74. 74.

    See Annex to TN/DS/9 Chairman’s Text, 28 May 2003.

  75. 75.

    See Annex to TN/DS/9 Chairman’s Text, 28 May 2003.

  76. 76.

    Ibid.

  77. 77.

    The international treaty establishing the Advisory Centre on WTO Law (ACWL) was signed at WTO Ministerial Meeting in Seattle (1999).

  78. 78.

    For a detailed analysis of the DSU Reform, see Raj Bhalla, et al.; Austin’s Ghost and DSU Reform, 37 International Lawyer 651–676 (2003); John Ragosta, et al.; WTO Dispute Settlement; the System is Flawed and Must be Fixed, 137, International Lawyer 697–752 (2003); Xinjie Luan, Dispute Settlement Mechanism Reforms and Chinas Proposal, 37 Journal of World Trade 1097–1117 (2003), Bernanrd Hoekman et al. ed Development, Trade and the WTO—A Handbook; The World Bank, 2002.

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Appendix

Appendix

S. No. Agreement Rules and procedures
1. Agreement on the Application of Sanitary and Phytosanitary Measures 11.2
2. Agreement on Textiles and Clothing 2.14, 2.21, 4.4, 5.2, 5.4, 5.6, 6.9, 6.10, 6.11, 8.1 through 8.12
3. Agreement on Technical Barriers to Trade 14.2 through 14.4, Annex. 2
4. Agreement on Implementation of Article VI of GATT 1994 17.4 through 17.7
5. Agreement on Implementation of Article VII of GATT 1994 19.3 through 19.5, Annex. II.2(f), 3, 9, 21
6. Agreement on Subsidies and Countervailing Measures 4.2 through 4.12, 6.6, 7.2 through 7.10, 8.5, footnote 35, 24.4, 27.7, Annex. V
7. General Agreement on Trade in Services XXII: 3, XXIII
  Annex. on Financial Services 4
  Annex. on Air Transport Services 4
8. Decision on Certain Dispute Settlement Procedure for the GATS 1 through 5

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Koul, A.K. (2018). WTO Dispute Settlement System Mechanisms. In: Guide to the WTO and GATT. Springer, Singapore. https://doi.org/10.1007/978-981-13-2089-7_3

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