19-03-2014, 02:39 PM
DISPUTE SETTLEMENT IN WTO : OVERVIEW & PROCEDURE
SPUTE SETTLEMENT.pptx (Size: 1.35 MB / Downloads: 18)
DISPUTE SETTLEMENT PROCEDURE
One of the unique features of the WTO is its provision relating to dispute settlement mechanism . In fact the power to settle trade disputes is what is the difference between the WTO and GATT .
When a member files a complaint against another , the dispute settlement body of the WTO steps in immediately .
Trade disputes are settled according to the Understanding on Rules and Procedures Governing the Settlement of Disputes .
The dispute settlement system of WTO is faster and automatic and the decisions cannot be ignored or blocked by members .
Functions and composition of the DSB
The General Council discharges its responsibilities under the DSU through the DSB (Article IV:3 of the WTO Agreement). Like the General Council, the DSB is composed of representatives of all WTO Members. These are governmental representatives, in most cases diplomatic delegates who reside in Geneva (where the WTO is based) and who belong to either the trade or the foreign affairs ministry of the WTO Member they represent. As civil servants, they receive instructions from their capitals on the positions to take and the statements to make in the DSB. As such, the DSB is a political body.
The DSB is responsible for administering the DSU, i.e. for overseeing the entire dispute settlement process.
World Trade Organization (WTO):
Resolution of Trade Disputes
1ST STAGE: Bilateral consultations within 30 days of request by another member. Can be brought to WTO Director-General. If failed after 60 days from request for consultation
2ND STAGE: Complainant requests DSB to establish a panel to examine the case
3RD STAGE: Panel's final reports are given to parties within 6 months or 3 months in urgency such as perishable goods. Panel reports are adopted by DSB within 60 days of issuance, unless one party notifies its decision to appeal or parties agree not to adopt report
4TH STAGE: Either party appeals to a standing Appellate Body