Wednesday, November 20, 2019

Trade Justice Delayed Is Trade Justice Denied: How to Make WTO Dispute Settlement Faster and More Effective

WTO dispute settlement has a number of key time frames built into it, with minimum and maximum periods for certain stages of the dispute as well as overall limits for the panel and appellate process.

When a party does request a panel, it must place its request on the agenda of a Dispute Settlement Body meeting, which requires 10 days' notice.

Comparing the first 10 WTO panel reports to the most recent 10 WTO panel reports provides a clear illustration of how cases take much longer today than they did at the start of the WTO in 1995.

A more systemic way to improve the efficiency of the panel process would be to rely on a standing body of panelists rather than continuing to draw panelists on an ad hoc basis in each dispute largely from the diplomatic community or broader trade-law community.

Provided notice is given to the responding party setting out the measures at issue and the claims of inconsistency of those measures with WTO obligations, complaining parties should have the option of requesting the establishment of a panel without first engaging in formal consultations under the DSU. Eliminate the ability to block the first panel request.

At the same time, the quality of the dispute settlement process is likely to be enhanced and the speed of the process accelerated when WTO panels are chaired by those with experience in the WTO dispute settlement system.

Together, these reforms would help shorten the WTO dispute settlement process considerably, although the impact of some aspects, such as permanent panel chairs, is difficult to quantify.

https://www.cato.org/publications/free-trade-bulletin/trade-justice-delayed-trade-justice-denied

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