Resolving or Exacerbating Disputes: The WTO's New Dispute System (original) (raw)

2003, International Affairs, Vol. 79, No. 4

As the WTO's dispute settlement system mires in controversy, this article–written in 2003–reminds us how we got here: In 1995 the dispute resolution system of the WTO was transformed to make it more effective in enforcing WTO rules. Ironically, the improvements in the dispute resolution system have contributed directly to greater conflict in the WTO. How can improving a system to resolve disputes actually exacerbate conflict? Alter identifies a number of conflict enhancing consequences of the change in the dispute resolution mechanism. Conflict is not per se bad. Indeed if the outcome of this conflict is that governments must better justify participation in the WTO, then conflict is good. But there is a danger that international courts are more likely than most courts to generate conflict, while the international legal and political system is less adept at weathering controversy and addressing valid public concerns. Left unaddressed, conflicts generated by international legal bodies can erode support for the international legal system and multilateral strategies in general. Alter puts forth solutions designed to build into internationally legalised processes political safety valves, greater political sensitivity, and improved accountability, as well as legitimacy enhancing devices. Demonstrated here in the case of the WTO, Alter's analysis applies to international legal systems generally.

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Resolving or exacerbating disputes? The WTO's new dispute resolution system

2003

International law and international courts are experiencing a renaissance. Historically maligned by realists as irrelevant, and by legal scholars who questioned whether international law deserved even to be called 'law', they are today the focus of a renewed interest. Seventeen international judicial bodies and 37 quasi-judicial international bodies have been created since the end of the Second World War, and if anything the trend is accelerating.

The WTO Dispute Settlement System and the Challenge to Multilateralism: Is the Rule of Law in Peril?

SSRN Electronic Journal

The Dispute Settlement System (DSS) of the WTO has been praised as the most successful example of international adjudicatory mechanism capable of resolving efficiently complex disputes in a multilateral framework, moreover inducing or ensuring compliance. The existence of a standing Appellate Body (AB) has been a key element of this success. While the DSS was going beyond the 500 disputes mark in 2015-2016 and new disputes were being tackled, the system has showed “success fatigue” so that practical and more long-term proposal of reforms have been envisaged. Against this positive context, which contrast with the inability of the members of the WTO to conclude further negotiations thus encouraging alternative regional agreements, the US has voiced more and more criticism at the DSS, mainly at the AB, accusing it of “overreach” and of procedural disrespect of the rules. This has lead the Trump administration to block the process of reappointment of AB members to fill vacancies, with the prospect of the demise of the AB at the end of 2019 and a paralysis of the WTO functioning. While these criticisms have been opposed by other WTO Members and rejected by independent observers as groundless, the US has resisted until recently to engage with other WTO members in finding acceptable multilateral solutions. This has given credit to the suspicion that through its challenge to the adjudicatory body of the WTO the Trump administration is in reality challenging the multilateral approach to the governance of international trade relations in general, a key feature of the rule-based international order established after WWII which maintains its value.

Beyond Notions Of Diplomacy And Legalism: Building A Just Mechanism For WTO Dispute Resolution

As with many other aspects of the GATT regime, the process by which disputes among the Contracting Parties to the GATT are resolved has changed markedly as the demands on the GATT have grown. Early procedures relied heavily on negotiation among states. Over time, those parties seeking legalistic mechanisms as a means of enhancing effectiveness have challenged the diplomatic approach. To a great extent, the implementation of legalist principles has had a salutary effect on the regime. Dispute resolution procedures have become more formal, independent and benefit from increased legitimacy. Even so, the ever-increasing demands of international trade on the system have made dispute resolution a continuing challenge for the international community. The process remains bedeviled by delays, problematic enforcement of decisions, and unbalanced access to the process that undermines legitimacy and inadequate promotion of GATT policy objectives. This article will examine the problems that currently hinder adjudication procedures and the prospect for improving the dispute resolution process through a number of structural changes including further emphasis on formal procedures and stringent enforcement mechanisms that establish incentives designed to conform national interests more closely with the needs of the international community as a whole.

Solving the WTO Dispute Settlement System Crisis

The Journal of World Investment & Trade

The three articles of this Special Issue Section,1 which I have the pleasure and privilege of introducing, represent major contributions to the current academic and diplomatic debate on the US-instigated World Trade Organization (WTO) Appellate Body's (AB) demise, its consequences and remedies. All three articles were initially presented as papers in a panel session on the current crisis of the WTO Dispute Settlement System (DSS) at the Society of International Economic Law (SIEL) Biennial Conference on 'International Economic Law in Unsettling Times' held at the American University, Washington College of Law in Washington D.C. in July 2018, but have been considerably revised and updated for the purpose of publication. They have not lost their relevance; on the contrary, the crisis has been going on and has even aggravated since July 2018 due to the United States' refusal to give a 'green light' to the renewal of the AB members. This is leading to the 'extinction' of the AB due to its membership falling below to the minimum three members required to decide cases on 10 December 2019. The various criticisms by the United States of AB practices are an unacceptable basis for such a radical reaction as paralyzing the whole DSS and are contrary to good faith.2 The United States has moreover refused until now to engage

'The WTO's Influence on Other Dispute Settlement Mechanisms: A Lighthouse in the Storm of Fragmentation'

Journal of World Trade, 2013

This article provides a comprehensive overview of the use of WorldTrade Organization (WTO) rules and case law by other dispute settlement mechanisms (DSMs) in international law. Our findings show that DSMs frequently refer to WTO rules and case law not only on matters of procedure but also on various substantive aspects of trade law and general international law.The 150 identified references vary in their quality and importance for the rationale of the DSM. They range from a footnote en passant to being at the core of the solution for a particular legal problem that the adjudicator or arbitrator faces.We cluster our findings into four major categories of circumstances under which other DSMs deem it appropriate to cite the WTO (factual determinations, procedural aspects, general principles of international law or the rules on treaty interpretation, and substantive rules).A more difficult task has been to draw tentative conclusions as to the reasons that motivate DSMs to look specifically intoWTO rules and case law. In most instances, this is due to the fact that the terms or their context in a given applicable law of a regional trade mechanism resemble those of theWTO disciplines. However, the use of the WTO precedent for purposes of procedure and clarification of general principles of international law or the rules on treaty interpretation show a broader influence of theWTO on international dispute settlement.

Is the WTO Appellate Body in Limbo? The Roots of the Crisis in the WTO Dispute Settlement Body and the Available Routes Navigating the Quagmire

2021

In its over 25 years' history, the dispute settlement mechanism of the World Trade Organisation (WTO) has been touted as one of the most active and successful international adjudicatory systems in relation to other international dispute settlement fora. The process in the engagement of the system presents a tripartite structure consisting of consultation, panel and appellate stages, and the enforcement proceedings. The functions of these processes help to promote the trust and confidence of the member states in the WTO trade dispute settlement system. Now the Appellate Body (AB) is paralysed following the incapacitation and consequential suspension of the appellate function of the WTO Dispute Settlement Body (DSB), because of the insufficient membership caused by the United States blockade on the appointment process of AB members. The paper discusses the trajectory of the WTO dispute settlement reform from the GATT regime, the root cause of the suspension of the Appellate Body, and the options available for the disputants in and outside the WTO system. It concludes that the system possesses policy defects if the attitude of a single state can render the AB non-functional and should be transformed when the appellate system is resuscitated.

To AB or Not to AB? Dispute Settlement in WTO Reform

Journal of International Economic Law, 2020

Recent debates on the operation of the World Trade Organization’s dispute resolution mechanism have focused primarily on the appellate body. We argue that this neglects the first-order issue confronting the rules-based trading system: sustaining the principle of depoliticized conflict resolution that is reflected in the negative consensus rule for the adoption of dispute settlement findings. Improving the quality of the work of panels by appointing a roster of full-time professional adjudicators, complemented by reforms to World Trade Organization working practices that reduce incentives to resort to formal dispute settlement, can resolve the main issues that led to the appellate body crisis. Effective, coherent, and consistent World Trade Organization dispute resolution need not include an appellate body. An appropriately redesigned single-stage process can serve just as well, if not better.

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