Settlement FAQs

what is dispute settlement body

by Mr. Forrest Ziemann I Published 3 years ago Updated 2 years ago
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How Dispute Settlement is made under WTO?

  • Dispute Settlement Body (DSB) As mentioned, the Dispute Settlement Body is responsible for dealing with dispute among the member countries.
  • Constitution of the DSB. The DSB has a broad structure as it is made up of representatives from all member governments. ...
  • Stages of dispute settlement. ...

Full Answer

What is the Dispute Settlement Body (DSB)?

The Dispute Settlement Body (DSB) of the World Trade Organization (WTO) makes decisions on trade disputes between governments that are adjudicated by the Organization. Its decisions generally match those of the Dispute Panel.

Who is the Dispute Settlement Body of the WTO?

Dispute Settlement Body. The Dispute Settlement Body (DSB) of the World Trade Organization (WTO) makes decisions on trade disputes between governments that are adjudicated by the Organization.

What is the role of the dispute settlement system?

The DSB administers the dispute settlement system by establishing dispute settlement panels, referring matters to arbitration, and adopting panel, appellate body, and arbitration reports.

When did the United States notify the Dispute Settlement Body?

The United States notified the Dispute Settlement Body on 19 March of its decision to appeal the pan… The Reports of the Appellate Body for individual appeals. Chronological list, with links to the Reports.

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What do you mean by dispute settlement?

Dispute resolution or dispute settlement is the process of resolving disputes between parties. The term dispute resolution is sometimes used interchangeably with conflict resolution.

What is the role of the dispute settlement body?

The DSB has authority to establish dispute settlement panels, refer matters to arbitration, adopt panel, Appellate Body and arbitration reports, maintain surveillance over the implementation of recommendations and rulings contained in such reports, and authorize suspension of concessions in the event of non-compliance ...

How does the dispute settlement body of WTO work?

There are three main stages to the WTO dispute settlement process: (i) consultations between the parties; (ii) adjudication by panels and, if applicable, by the Appellate Body; and (iii) the implementation of the ruling, which includes the possibility of countermeasures in the event of failure by the losing party to ...

Which body hears the dispute?

The Appellate Body was established in 1995 under Article 17 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). It is a standing body of seven persons that hears appeals from reports issued by panels in disputes brought by WTO Members.

What are TBT measures?

The term "technical barriers to trade" (TBT) refers to mandatory technical regulations and voluntary standards that define specific characteristics that a product should have, such as its size, shape, design, labelling / marking / packaging, functionality or performance.

Who settles international disputes?

International Court of Justice plays a very important rule in the settlement of international disputes. Security Council: – A dispute may be settled by a principal organ of the United Nations, known as the Security Council. The Council consists of fifteen members.

Which are the main bodies of WTO?

The WTO's top decision-making body is the Ministerial Conference. Below this is the General Council and various other councils and committees. Ministerial conferences usually take place every two years. The General Council is the top day-to-day decision-making body.

What is the main objective of WTO?

The overall objective of the WTO is to help its members use trade as a means to raise living standards, create jobs and improve people's lives. The WTO operates the global system of trade rules and helps developing countries build their trade capacity.

What are the 6 functions of the WTO?

Functionsadministering trade agreements.acting as a forum for trade negotiations.settling trade disputes.reviewing national trade policies.building the trade capacity of developing economies.cooperating with other international organizations.

What is panel and Appellate Body?

Unlike panels, the Appellate Body is a permanent body of seven members entrusted with the task of reviewing the legal aspects of the reports issued by panels. The Appellate Body is thus the second and final stage in the adjudicatory part of the dispute settlement system.

What is the Appellate Body crisis?

The United States' blockage of appointments to the WTO Appellate Body, the highest instance of the WTO dispute settlement, plunged the multilateral rules-based trading system into crisis. The US grievances include questions of delay, judicial over-reach, precedence, and transition rules.

Which is the apex body of WTO?

The WTO General Council The General Council is the WTO's highest-level decision-making body in Geneva, meeting regularly to carry out the functions of the WTO.

Which is an apex body for settlement of disputes in foreign trade?

The dispute settlement mechanism is an important arm of the WTO to resolve trade disputes among member nations. The appellate body is the apex institution to adjudicate disputes.

How and by whom are members of the Appellate Body appointed?

The Appellate Body is composed of seven Members who are appointed by the Dispute Settlement Body (DSB). Each Member of the Appellate Body is required to be a person of recognized authority, with demonstrated expertise in law, international trade and the subject-matter of the covered agreements generally.

What is the structure of WTO?

The structure of the WTO is dominated by its highest authority, the Ministerial Conference, composed of representatives of all WTO members, which is required to meet at least every two years and which can take decisions on all matters under any of the multilateral trade agreements.

What type of complaint is included under nullification or impairment?

The first, and by far, the most common complaint is the so-called “violation complaint” pursuant to Article XXIII:1(a) of GATT 1994. This complaint requires “nullification or impairment of a benefit” as a result of the “the failure of another [Member] to carry out its obligations” under GATT 1994.

What is the case for substantial deference by the WTO Dispute Settlement Body under the SPS Agreement?

International trade policy and domestic food safety regulation: The case for substantial deference by the WTO Dispute Settlement Body under the SPS Agreement, Trebilcock, M. J., & Soloway, J. A. (2002). This paper takes a look at how a states regulatory policy can, in some cases, function as de facto tariffs, even when traditional tariffs are not in place. This paper suggests a system of approaches for the World Trade Organization (WTO) that can meet public health needs while still reducing the barriers to international trade when the WTO reviews international safety and health regulations.

How long did the WTO dispute settlement system last?

The WTO dispute settlement system: the first ten years, Davey, W. J. (2005). Journal of International Economic Law, 8 (1), 17-50. This paper makes a general survey of the actions taken by the World Trade Organizations (WTOs) dispute settlement system during its first ten years from 1995 to 2004. A general review of the system is made, and then interactions with major countries are examined and evaluated. Particular attention is paid to certain bilateral relationships, like the one between the U.S. and E.C. The author finds that while the system is effective in achieving its stated goals, it does not operate as quickly as hoped.

How many members are in the appellate body?

The Appellate Body has seven members, each serving four-year terms. It is appointed by the DSB with representatives from different WTO member states. They are the individuals with proven knowledge of international trade and laws. Three members from the Appellate body hears the appeal of the party and may uphold the legal interpretations and recommendations made by the panel or they can modify or reverse it.

What happens if the DSB fails?

If it fails, the complainant state can appeal to establish a dispute settlement panel, unless DSB by consensus decides anything else. The Secretariat then sets up a panel with three members on an ad hoc basis. The panel asks the parties to submit their position verbally or in writing.

What is a trade dispute?

A trade dispute may arise when a member state violates any agreements contained in the Final Act of the Uruguay Round.

What is the role of the DSB?

The DSB administers the dispute settlement system by establishing dispute settlement panels, refer ring matters to arbitration, and adopting panel, appellate body, and arbitration reports.

How long does it take for a state to consult with another state?

The consultation has 60 days after receiving the request to resolve the dispute. If it fails, the complainant state can appeal to establish a dispute settlement panel, unless DSB by consensus decides anything else.

What is the WTO dispute settlement?

Dispute settlement. Resolving trade disputes is one of the core activities of the WTO. A dispute arises when a member government believes another member government is violating an agreement or a commitment that it has made in the WTO.

What is the WTO appellate body?

The WTO Appellate Body Repertory of Reports and Award s covers the Appellate Body's rulings in WTO disputes since its establishment in 1995.

How many years of cooperation between the WTO and the European Law Students Association?

With August marking 20 years of collaboration, the WTO and the European Law Students Association (EL…

When did the WTO agree to clarify the DSU?

At the Doha Ministerial Conference, in 2001, WTO members agreed to negotiate to improve and clarify the DSU — the rules and procedures governing the settlement of WTO disputes.

What is a DSU?

The Dispute Settlement Understanding (DSU) is the main WTO agreement on settling disputes.

What is the WTO dispute settlement process?

The operation of the (WTO) dispute settlement process involves the parties and third parties to a case, the DSB panels, the Appellate Body, the WTO Secretariat, arbitrators, independent experts and several specialized institutions. This chapter gives an introduction to the WTO bodies involved in the dispute settlement system. The involvement of the parties and third parties, the primary participants in a dispute settlement proceeding, has already been outlined here. The precise tasks and roles of each of the actors involved in the dispute settlement process will become clear in the later chapter on the stages of the dispute settlement process.

What is the DSB's role in dispute settlement?

When the DSB administers the dispute settlement provisions of a plurilateral trade agreement (of Annex 4 of the WTO Agreement), only Members that are parties to that agreement may participate in decisions or actions taken by the DSB with respect to disputes under these agreements ( Article 2.1 of the DSU).

What is the DSB responsible for?

In less technical terms, the DSB is responsible for the referral of a dispute to adjudication (establishing a panel); for making the adjudicative decision binding (adopting the reports); generally, for supervising the implementation of the ruling; and for authorizing “retaliation” when a Member does not comply with the ruling.

What is the rule for the DSB?

Decision-making in the DSB back to top. The general rule is for the DSB to take decisions by consensus ( Article 2.4 of the DSU). Footnote 1 to Article 2.4 of the DSU defines consensus as being achieved if no WTO Member, present at the meeting when the decision is taken, formally objects to the proposed decision.

What are the rules of procedure for DSB meetings?

With respect to the more operational aspects of the DSB’s work, the Rules of Procedure for Meetings of the DSB 1 provide that the Rules of Procedure for Sessions of the Ministerial Conference and Meetings of the General Council 2 apply, subject to a few special rules on the chairperson and except as otherwise provided in the DSU. An important organizational aspect of these general rules is the requirement for Members to file items to be included on the agenda of an upcoming meeting no later than on the working day before the day on which the notice of the meeting is to be issue d, which is at least ten calendar days before the meeting (Rule 3 of the Rules of Procedure). In practice, this means that items for the agenda must be made on the 11 th day before the DSB meeting, and on the 12 th or 13 th day if the 11 th day were to fall on a Saturday or Sunday.

How often does the DSB meet?

In practice, the DSB usually has one regular meeting per month. When a Member so requests, the Director-General convenes additional special meetings.

What is reverse consensus in DSB?

This special decision-making procedure is commonly referred to as “negative” or “reverse” consensus. At the three mentioned important stages of the dispute settlement process (establishment, adoption and retaliation), the DSB must automatically decide to take the action ahead, unless there is a consensus not to do so. This means that one sole Member can always prevent this reverse consensus, i.e. it can avoid the blocking of the decision (being taken). To do so that Member merely needs to insist on the decision to be approved.

Which country has notified the Dispute Settlement Body of its decision to appeal the panel report in the case?

China has notified the Dispute Settlement Body of its decision to appeal the panel report in the cas…

What is the appellate body?

It is a standing body of seven persons that hears appeals from reports issued by panels in disputes brought by WTO Members.

How many members are in the appellate body?

Appellate Body Members. Under Article 17 of the DSU, the Appellate Body is composed of seven Members who are appointed by the DSB to serve for four-year terms, with the possibility of being reappointed once. The criteria for appointing Appellate Body members is also set out under this provision.

When is the last sitting member of the appellate body?

There are currently no Members on the Appellate Body; the term of the last sitting member expired on 30 November 2020. Farewell Speech of Appellate Body member Hong Zhao: 30 November 2020. Farewell Speech of Appellate Body member Thomas R. Graham: 5 March 2020.

When does the appellate body expire?

Currently, the Appellate Body is unable to review appeals given its ongoing vacancies. The term of the last sitting Appellate Body member expired on 30 November 2020.

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Overview

The Dispute Settlement Body (DSB) of the World Trade Organization (WTO) makes decisions on trade disputes between governments that are adjudicated by the Organization. Its decisions generally match those of the Dispute Panel.

Institutional structure

The DSB is, in effect, a session of the General Council of the WTO: that is, all of the representatives of the WTO member governments, usually at ambassadorial level, meeting together. It decides the outcome of a trade dispute on the recommendation of a Dispute Panel and (possibly) on a report from the Appellate Body of WTO, which may have amended the Panel recommendation if a party chose to appeal. Only the DSB can make these decisions: Panels an…

List of chairs of the DSB

• David Walker (diplomat) 2019
• Junichi Ihara 2017

Prominent cases

• US requirements for Turtle excluder devices (Shrimp-Turtle Case)
• The 2002 United States steel tariffs
• US exceptions to secondary broadcasting rights
• European Union (EC) restrictions on genetically modified food

See also

• World Trade Organization Dispute 160

External links

• WTO dispute settlement website.
• UNCTAD Project on Dispute Settlement.

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