RULES AND PROCEDURES GOVERNING THE SETTLEMENT OF DISPUTES

WTO

UNDERSTANDING ON RULES AND PROCEDURES GOVERNING THE SETTLEMENT OF DISPUTES

 Provides:

  1. consultations or negotiations; (the most preferred form of settlement of dispute)
  2. adjudication by panels and the Appellate Body;
  3. arbitration; and
  4. good offices, conciliation and mediation

As the various methods of settlement of disputes

  1. Jurisdiction
  2. In all cases relating to “covered agreements”.
  3. Compulsory Jurisdiction
  4. Exclusive Jurisdiction (WTO jurisdiction in exclusion to other jurisdictions)
  5. Access to Jurisdition
  6. Only Members
  7. Cause of Action as defined by the GATT article XXIII
  • ‘violation’ complaints;
  • ‘non-violation’ complaints; and

In the case of a ‘non-violation’ complaint or a ‘situation’ complaint, the complainant must demonstrate that there is nullification or impairment of a benefit or that the achievement of an objective is impeded.



  • ‘Situation’ complaints.
  1. Dispute Settlement Process
  2. Consultations
  3. Panel Proceedings
  4. Appellate Review Proceedings
  5. Implementation and Enforcement
  6. Rules of Interpretation
  7. Article 3.1 of the DSU, “Customary rule of interpretation of public international law.” That is, article 31 of the Vienna Convention on Law of Treaties.
  8. Confidentiality: all processes and proceedings under the WTO DSU are confidential.
  9. Remedy
  10. After a Recommendation has been adopted by the DSB, the recommendation becomes binding. Hence, the party which has been found to have breached any obligation of the WTO should withdraw the measure in question immediately. If immediate withdrawal is not possible the DSB, parties or arbitration between the parties may decide on the reasonable time to implement the recommendation.
  11. Failing to withdraw the measure can result into two temporary measures by the party winning the claim.
  12. Retaliation
  13. Compensation

Compensation is forward-looking. That is compensation for future loss.