Strategies and Success in Litigation and Negotiation in the WTO

2012 ◽  
Vol 17 (1) ◽  
pp. 139-162 ◽  
Author(s):  
Maria F. Agius

AbstractThis article analyzes linkages between litigation in the World Trade Organization (WTO) Dispute Settlement Body (DSB) and negotiation in multilateral trade rounds and develops a typology of links that can occur between the two processes. These include creating conditions where bargaining is informed by law, influencing the agenda-setting and creating momentum for negotiation on key issues, and affecting thestatus quofrom which negotiations proceed by influencing interpretation of trade rules in the DSB. The purpose is to test whether poor and inexperienced states that are disadvantaged in negotiations can improve their bargaining power in negotiation rounds by pursuing legal proceedings, to see whether links can be exploited for strategy-making to promote the interests of these states, and to discuss how the WTO as an international organization benefits from their empowerment. The strategies suggested in this article could improve the commitment and active participation of relatively non-influential member states. This could be conducive to perceptions of the WTO as a legitimate organization and to a more constructive climate for effective negotiations.

Author(s):  
Sivan Shlomo Agon

The transatlantic Bananas dispute rambled on in the multilateral trade system for almost two decades. The convoluted conflict, standing at the centre of this chapter, provides a useful starting point for studying the goal-attainment efforts exhibited by the World Trade Organization (WTO) Dispute Settlement System (DSS) in perennial disputes, together with the goal-shifting and goal-conflict patterns characterizing such cases. The chapter first provides a brief background of the Bananas case. It then recounts the dispute’s major turning points in the multilateral trading system, and identifies the main factors rendering the conflict so prolonged and resistant to resolution. On these foundations, the chapter turns to a close goal-based reading of EC-Bananas, tracing the DSS’s goal-attainment efforts and the goal shifts marking this lengthy dispute. Thereafter, the chapter examines the resulting conflicts between DSS goals and the mixed, noncompliant outcomes ultimately produced in EC-Bananas, while assessing their ramifications for an analysis of the system’s effectiveness.


1999 ◽  
Vol 2 ◽  
pp. 61-85 ◽  
Author(s):  
Joni Heliskoski

One of the principal achievements of the 1994 Agreement establishing the World Trade Organization was the new mechanism for dispute settlement, embodied in the Understanding on Rules and Procedures Governing the Settlement of Disputes. While its predecessor, the General Agreement on Tariffs and Trade of 1947 (and the 1979 Agreements resulting from the Tokyo Round of Multilateral Trade Negotiations) had already evolved, to a considerable degree, from a negotiating forum for the conduct of world trade diplomacy to a “judicial” system properly so called, the WTO Dispute Settlement Understanding nevertheless marked a decisive step forward.


1999 ◽  
Vol 2 ◽  
pp. 61-85 ◽  
Author(s):  
Joni Heliskoski

One of the principal achievements of the 1994 Agreement establishing the World Trade Organization was the new mechanism for dispute settlement, embodied in the Understanding on Rules and Procedures Governing the Settlement of Disputes. While its predecessor, the General Agreement on Tariffs and Trade of 1947 (and the 1979 Agreements resulting from the Tokyo Round of Multilateral Trade Negotiations) had already evolved, to a considerable degree, from a negotiating forum for the conduct of world trade diplomacy to a “judicial” system properly so called, the WTO Dispute Settlement Understanding nevertheless marked a decisive step forward.


Author(s):  
Sivan Shlomo Agon

The present chapter concludes the work. It sums up the key findings of the study while discussing the results emerging from a comparative analysis of the three categories of disputes examined throughout the book. The chapter then revisits the central arguments put forth in the book and articulates the lessons to be learned for the study of the goals, operation, and effectiveness of the World Trade Organization (WTO) Dispute Settlement System (DSS), and of international courts more broadly. It also discusses some of the insights to be offered with respect to possible institutional changes or reforms of the WTO DSS, with a view to ensuring the system’s future effectiveness. The chapter closes with several observations that go beyond effectiveness, pertaining to the costs and unintended consequences attendant on more effective and empowered international adjudication.


Author(s):  
Sivan Shlomo Agon

When asked what, if anything, distinguishes US-Clove Cigarettes from other disputes filed with the World Trade Organization (WTO) Dispute Settlement System (DSS), an Appellate Body (AB) Secretariat staff member replied: ‘A number of things and nothing at the same time’.1 This answer aptly captures the story of trade-and disputes and the DSS’s goal-attainment patterns in such cases, as revealed in this second part of the book. On the one hand, as in all WTO disputes, the DSS appears to be engaged in this class of cases in the routine legal exercise of law application and interpretation while pursuing its multiple goals, including rule-compliance and dispute resolution. On the other hand, as a WTO practitioner remarked when discussing the ‘interpretative exercise’ carried out by the DSS in trade-and disputes:...


Author(s):  
Rambod Behboodi

SummaryThe disputes between Canada and Brazil over subsidies to the regional aircraft industry were the first cases under Part II (covering prohibited subsidies) of the Agreement on Subsidies and Countervailing Duties (SCM Agreement) of the World Trade Organization (WTO). The PROEX case, involved the scope of the concept of “special and differential treatment” under Article 27 of the SCM Agreement, and the interpretation of the first paragraph of Item (k) of the Illustrative List of Export Subsidies as set out in Annex I to the SCM Agreement. The Canada — Aircraft case involved, for the first time, Article 1 of the SCM Agreement, which defines what practices constitute a subsidy, and Article 3, which prohibits subsidies “contingent, in law or in fact, upon export performance.” The case also dealt with important procedural issues relating to WTO dispute settlement. The author reviews critically these decisions with respect to both substantive and procedural issues.


2016 ◽  
Vol 15 (3) ◽  
pp. 404-406
Author(s):  
WILLIAM J. DAVEY

John Jackson bestrode the world of international trade law like a Colossus. His 1969 treatise on World Trade and the Law of GATT was called the bible of GATT law. His 1977 casebook on Legal Problems of International Economic Relations created a new law school course and introduced thousands of students around the globe to international trade law. It was the leading international trade law casebook for decades, and his students went on to positions of responsibility throughout the world in governments, international organizations, and private practice. His analysis of GATT infirmities convinced certain influential governments to push for a new international trade organization, which eventually saw life as the World Trade Organization. It was a great honor for me to have been associated with John for over thirty years. Indeed, his 1985 invitation to join as a co-author of the casebook after my first year in law teaching undoubtedly saved me many years of drudgery as a corporate/securities law scholar. Thus, I am pleased to offer some thoughts on John's influence on dispute settlement under GATT and the WTO.


Author(s):  
Christiane Gerstetter

This chapter analyses how the World Trade Organization (WTO) dispute settlement bodies legitimize their decisions and by implication also the WTO Dispute Settlement System as well as the WTO as an institution more broadly. The author argues there are two relevant dimensions for understanding how judges legitimize judicial decisions: the substantive outcomes of cases, that is who wins and loses and what interpretations are adopted, and the way a judicial decision is justified. She concludes that the WTO dispute settlement bodies act strategically in order to win the acceptance of the member states, and ultimately legitimize this dispute settlement system as a judicial entity.


2017 ◽  
Vol 16 (2) ◽  
pp. 395-425 ◽  
Author(s):  
PETROS C. MAVROIDIS ◽  
NIALL MEAGHER ◽  
THOMAS J. PRUSA ◽  
TATIANA YANGUAS

AbstractThe World Trade Organization (WTO) dispute settlement process allows a defending Member a ‘reasonable period of time’ (RPT) to implement any findings that its contested measures are inconsistent with WTO law. If agreement on this RPT cannot be reached, Article 21.3(c) of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) provides for the possibility of arbitration on the length of the RPT. The DSU provides limited guidelines on the RPT, stating only that it should not normally exceed 15 months. In practice, Arbitrators have developed the standard that the RPT should reflect the shortest possible period under the domestic legal system of the defending Member to make the changes necessary to comply with the WTO rulings. Our research confirms that in practice Arbitrators have determined this period by ‘splitting the difference’ approximately between the periods suggested by the complaining and defending Member. In addition, the process appears to reward defending Members that request an RPT that exceeds the 15-month guideline in Article 21.3(c).


Author(s):  
Sivan Shlomo Agon

Recent years have confronted the World Trade Organization (WTO) Dispute Settlement System (DSS) with an intense wave of complex linkage disputes. US-Clove Cigarettes, which stands at the centre of this chapter, serves as the second case study in the investigation into the DSS’s goal-attainment endeavours in this category of WTO disputes. The chapter begins with a review of several jurisprudential milestones leading from the early US-Shrimp, examined in Chapter 5, to the more recent US-Clove Cigarettes, examined here, with a view to portraying the legitimation continuum of which the latter dispute forms a part. The chapter then discusses the intricate legitimacy setting in which US-Clove Cigarettes unfolded and, through a close goal-oriented analysis, shows how the intensified legitimacy concerns aroused shaped the goals pursued by the DSS and the judicial choices made towards their achievement. The chapter concludes by linking the goal-attainment efforts identified to the broader DSS goal-based effectiveness framework advanced in the book.


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