Overview of The WTO

 Objective of presentation

 WTO: The Beginnings

 Growth in Trade Underway

 A New Multilateral Organization

 The WTO: what is it?

 How does the WTO function?

 Principles of the Trading System

 Provisions for developing countries

 Progressing by packages

 The Round to end all rounds

 The WTO Agreement

 Liberalising trade in goods

 Textiles - back in the mainstream

 Agriculture: fairer markets for all

 Trade remedies

 Standards and procedures

 Administrative procedures

 Services: rules for growth and investment

 Services: the key rules

 Services: Better Access to Markets

 Intellectual Property: protection and enforcement of rights

 TRIPS: what does it cover?

 Settling Disputes: the heart of the system

 Meetings of Ministers

  Singapore Ministerial

 Geneva and Seattle Ministerials

 Doha Ministerial Meeting

 Cancun Ministerial Meeting

 Recent Developments

Settling Disputes: the heart of the system

A dispute about what?

What if WTO members believe that other members are violating trade rules in any of the agreements mentioned so far? The answer is that they will use the multilateral system of settling disputes instead of taking action unilaterally. That means abiding by the agreed procedures of the WTO Dispute Settlement Understanding. Typically, a dispute arises when one country adopts a trade policy measure, or takes some action, that one or more fellow WTO members consider to be breaking the WTO agreements. It can also arise when a member fails to live up to its obligations.

Rapid settlement

The WTO Dispute Settlement Understanding emphasizes that prompt settlement of disputes is essential if the WTO is to function effectively. It therefore sets out in considerable detail the procedures and the timetable to be followed in resolving disputes. If a case runs its full course, it should not normally take more than one year or 15 months if the case is appealed.

Better than GATT

Under the previous GATT procedure, rulings could only be adopted by consensus. This meant that a single objection could block the ruling. It was therefore possible for the losing country to block the adoption of the ruling. Rulings are now automatically adopted unless there is a consensus to reject them — any country wanting to block a ruling has to persuade all other WTO members --- including its adversary in the case --- to share its view. Although much of the procedure does resemble a court or tribunal, the preferred solution is for the countries concerned to discuss their problems and settle the dispute by themselves.

How are disputes settled?

Settling disputes is the responsibility of the Dispute Settlement Body - which is the General Council in another guise. It has the sole authority to establish "panels" of experts to consider a case, and to accept or reject the panels' findings or the results of an appeal. It monitors the implementation of rulings and recommendations, and has the power to authorize retaliation when a country does not comply with a ruling.

Right to Appeal

Either side can appeal a panel's ruling. Sometimes both sides do so. Appeals have to be based on points of law such as legal interpretation. They cannot re-examine existing evidence or examine new evidence.

More is Better

The WTO deals with an increasing number of dispute settlement cases. Does this mean that law and order is breaking down? Not necessarily. Sometimes it means that people are turning more to the courts instead of taking the law into their own hands. There are strong grounds for arguing that the increasing number of disputes is simply the result of expanding world trade and the stricter rules that now apply. The fact that more disputes are coming to the WTO reflects a growing faith in the system.