OUTLINE

NOTES

<aside> <img src="/icons/fish_gray.svg" alt="/icons/fish_gray.svg" width="40px" /> THEORIES

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The Dispute Settlement System - from GATT to the WTO

• The current WTO dispute settlement, as it has been operating since 1/1/1995
• It is not a novel system
• It is based on, & has absorbed, almost 50 years of experience with the resolution of trade disputes in the context of GATT 1947
• GATT 1947: Art. 22, 23 diplomatic negotiations
• WTO 1995: adjudication

Distinguishing the Dispute Settlement Understanding (DSU) from the GATT 1947 system

• Explicit time frame for settlement of disputes
• Right to the automatic establishment of a panel upon request by the complaining party (negative consensus)
• Automatic adoption of panel reports (negative consensus)
• Establishing of standing Appellate Body (to deal with appeals from panel reports)
• Stringent rules & procedures for implementation
• Right to retaliation & specific rules on cross-retaliation

Objectives of the WTO DSU (Art. 3 DSU)

• To provide security & predictability to the multilateral trading system
• That a prompt settlement of disputes is essential
• To secure a positive solution to a dispute (negotiated solution if preferable to litigated decisions)
• Once a violation is determined the aim is to secure the withdrawal of the offending measure