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DISPUTE SETTLEMENT On the eve of its 15th “birthday”, the World Trade Organization (WTO) earlier this month reached the milestone of having the 400th trade.

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Presentation on theme: "DISPUTE SETTLEMENT On the eve of its 15th “birthday”, the World Trade Organization (WTO) earlier this month reached the milestone of having the 400th trade."— Presentation transcript:

1 DISPUTE SETTLEMENT On the eve of its 15th “birthday”, the World Trade Organization (WTO) earlier this month reached the milestone of having the 400th trade dispute brought to the body's dispute settlement mechanism. Since coming into existence in January 1995, the WTO's 153 members initiated an average of approximately 27 disputes per year under the provisions of the Dispute Settlement Understanding, the WTO treaty governing the settlement of all disputes among the organization's members.

2 “This is surely a vote of confidence in a system which many consider to be a role model for the peaceful resolution of disputes in other areas of international political or economic relations,” said WTO Director- General Pascal Lamy to mark the occasion. “All the political muscle-flexing and grandiloquence is discarded at the door once the case enters the WTO.”

3 Of the 400 cases filed so far, approximately half have eventually been settled directly between the parties, under the system's mandatory consultation requirements, without going to litigation. Of the remainder, 169 have been the subject of panel and, where appealed, Appellate Body proceedings, 17 are currently in adjudication, and 12 are still the subject of active consultation between the parties.

4 “The dispute settlement system is widely considered to be the jewel in the crown of the WTO,” said DG Lamy. “Some critics claim that the system is monopolized by the developed countries, especially the US and EC. Certainly, these two trading giants are the most frequent users of the system. This is not surprising since they are the world's biggest traders, as is increasingly the case with China. But the figures also show that developing countries do not play coy hand-maidens to their richer trading partners. During the period 1995-2009, developing countries have been complainants in more than 45 per cent of all cases, and have been respondents in more than 42 per cent of the cases.

5 “No trade negotiator enters a negotiation without some assurance that the agreements he negotiates will be underpinned by a credible dispute settlement system. The ongoing review of the functioning of the WTO's dispute settlement system has given rise to many proposals for clarification and improvement. But WTO Members agree that, as the bedrock of the multilateral trading system, the dispute settlement system will not be subject to any seismic shift in its fundamental structure as a result of the Members' deliberations,” said DG Lamy.

6 WTO members involved in disputes (Total No. of disputes: 400 as of 2 November 2009) MemberComplainantRespondent Antigua and Barbuda10 Argentina1516 Australia710 Bangladesh10 Belgium03 Brazil2414 Canada3315 Chile1013 China617 Chinese Taipei30 Colombia53 Costa Rica40 Croatia01 Czech Rep12 Denmark01 Dominican Republic03 Ecuador33

7 WTO members involved in disputes Egypt04 European Communities8166 France03 Germany01 Greece02 Guatemala72 Honduras60 Hong Kong, China10 Hungary52 India1820 Indonesia44 MemberComplainantRespondent

8 WTO members involved in disputes MemberComplainantRespondent Ireland03 Japan1315 Korea1314 Malaysia11 Mexico2114 Netherlands01 New Zealand70 Nicaragua12 Norway30 Pakistan32 Panama51 Peru24 Philippines55 Poland31 Portugal01 Romania02 Singapore10 Slovak Rep03

9 WTO members involved in disputes South Africa03 Spain01 Sri Lanka10 Sweden01 Switzerland40 Thailand133 Trinidad & Tobago02 Turkey28 United Kingdom02 United States93107 Uruguay11 Venezuela12 MemberComplainantRespondent

10 Disputes per Year: YearDisputes 199525 199639 199750 199841 199930 200034 200123 200237 200326 200419 200511 200621 200713 200819 2009 12 (as of 2 Nov.)


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