1994 WTO Understanding

On the Rules and Procedures Governing the Settlement of Disputes

World Trade Organisation

Main tasks:

- To advance the international trade.

- To remove trade barriers.

- To settle trade disputes.

But the environment also needs to be taken in consideration.

The Dispute Settlement Body (SBD)

- An international jurisdiction, a legal value.

- Rules and procedures defined by the Understanding on Rules and Procedures Governing the Settlement Disputes (1994).

- ”the central element in providing security and predictability to the multilateral trading system” (art. 3.2 of the Understanding).

- Distinctive feature: possibility to impose economic sanctions against a country.

- More restrictive and efficient than the GATT system.

The Rules and Procedures Governing the Settlement of Disputes (1)

First stage: the consultation

Discussion between the countries in dispute to settle their differences by themselves (60 days).

Second stage: the panel

- If consultations fail, the complaining country can ask for a panel to be appointed (30 days).

- Delivery of the panel's rapport (180-270 days).

- Adoption of the panel's final report (panel's report can only be rejected by consensus in the SDB) (60 days).

The Rules and Procedures Governing the Settlement of Disputes (2)

Third stage: the implementation of the conclusions

- Possibility to appeal.Examination of the appeal by the Appellate Body (60 days).Acceptance or rejection of the appeals report (90 days).

- Implementation of the recommendations (reasonable period of time).

- If recommendations not followed:The complaining country can ask the SDB for permission to impose limited trade sanctions against the other side.

The WTO and the Environment

- WTO’s goal about sustainable development.

- The adoption of measures to protect the environment.

- Environmental disputes in the GATT.

- The ’shrimp-turtle’ case.