Issues and Strategies in Reconciling the Malaysia-EU Palm Oil Discord

The EU has decided to phase out imports of palm oil used in biofuels in the EU by 2030. This affects people in Malaysia who rely on the palm oil business for their livelihood. This chapter examines the events leading up to the EU's anti-palm oil actions and the many ways in which Malaysia has responded to defend its palm oil sector. This includes 1) countering EU's allegation through scientific research, 2) demonstrating its commitment to transform the palm oil industry toward sustainability through certification standards, 3) fostering the commitment to grow palm oil sustainably, 4) garnering support from ASEAN and the international community, 5) expressing its opposition and warnings for retaliatory measures against the EU, and 6) requesting consultation under the WTO dispute settlement mechanism. It presents the political processes that generate policy interventions aimed at defending palm oil trade with the EU alerting that economic decoupling and direct conflict may exacerbate the problem, weaken bilateral relations, and elude good improvements in the palm oil business.

The Arbitration Panel Report in Ukraine – Export Prohibition on Wood Products: Lessons from the ‘Pegasus’ of International Adjudication

The Arbitration Panel’s decision in Ukraine – Export Prohibition on Wood Products suggests the emerging trend among some Word Trade Organization (WTO) Members to settle their trade irritants regionally. This dispute was adjudicated between the EU and Ukraine, which are both WTO Members, under the WTO rules that are incorporated by reference into the Association Agreement between these parties and by the Arbitration Panel the two members of which are well-known WTO adjudicators. The dispute settlement proceedings in this case thus illustrate how regional dispute settlement mechanisms work in practice and shed some light on whether these mechanisms could serve as a viable alternative to the WTO at the time of the ongoing WTO dispute settlement crisis. Moreover, from a substantive perspective, some may view this decision as an important milestone in international economic law, which contributes to the long-standing debate on how the right balance should be struck between trade and environmental considerations, in this case, the conservation of forests. This article, however, addresses several important shortcomings in the Arbitration Panel’s reasoning, which appear to diminish the relevance of the decision beyond the dispute at hand.

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

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.

World Trade Organization: Penyelesaian Sengketa Dagang Impor Ayam (Brazil V. Indonesia)

The world trade regime began in 1948 which began with the General Agreement on Tariffs and Trade (GATT). After experiencing several developments, a forum was formed namely the World Trade Organization (WTO). By ratifying the agreement on the WTO, Indonesia must adjust the existing regulations to the provisions or decisions made by the trade organization. In 2009, Indonesia was having a dispute about chicken importation with Brazil. This case arises when Indonesia implements policies that inhibit chicken export activities from Brazil to Indonesia. Indonesia claims that Indonesia only ensures that the chicken is healthy and halal for consumption. This dispute was then brought to the WTO Dispute Settlement Body with case number DS 484: Indonesia - Measures Meat Chicken Meat and Chicken Products. Keyword: Dispute Settlement Body, World Trade Organization, Impor Ayam, Brazil, Indonesia. Abstrak. Rezim perdagangan dunia sudah dimulai sejak tahun 1948 yang diawali dengan adanya General Agreement on Tariffs and Trade (GATT). Setelah mengalami beberapa perkembangan, dibentuklah sebuah wadah yaitu World Trade Organization (WTO) yang merupakan organisasi perdagangan dunia. Dengan meratifikasi agreement tentang WTO, Indoensia harus menyesuaikan peraturan dan regulasi yang ada dengan ketentuan atau hasil keputusan organisasi perdagangan tersebut. Pada 2009, Indonesia terkena sengketa impor ayam dengan Brazil. Kasus ini timbul ketika Indonesia diduga memberlakukan kebijakan yang menghambat kegiatan ekspor ayam dari Brazil ke Indonesia. Sengketa ini kemudian dibawa ke Badan Penyelesaian Sengketa WTO dengan nomor kasus DS 484: Indonesia - Measures Meat Chiken Meat and Chiken Products. Kata Kunci: Dispute Settlement Body, World Trade Organization, Impor Ayam, Brazil, Indonesia.

Non-Compliance in WTO Dispute Settlement: Assessing the Effectiveness of WTO Retaliation from Its Purpose(s)

<p>The issue of non-compliance with the Dispute Settlement Body (DSB) recommendations and rulings emerges when the violator state fails to bring its inconsistent measures into conformity with its WTO obligations within a reasonable period of time. Compensation and suspension of concessions or other obligations (retaliation) are the only remedies provided under WTO law for cases of non-compliance. Many academic writings, as well as statements from WTO Members, have demonstrated pessimism concerning the effectiveness of these remedies, particularly retaliation. The central point of this thesis concerns three main issues: the problems of WTO retaliation, the question of the effectiveness of retaliation, and the purposes of retaliation. This thesis aims to provide another perspective, besides the common “harm-resulted” perspective, for assessing the effectiveness of WTO retaliation. Accordingly, it provides several approaches: (1) identification of the purpose of retaliation in order to assess its effectiveness; (2) analysis of the enquiry whether there are in fact several purposes of WTO retaliation; (3) examination of the question whether the presence of retaliation purposes other than that inducing compliance is within the ambit of WTO law; (4) consideration of retaliation as a way of inducing a mutually agreeable solution; and (5) consideration of the question whether any deviation from strict compliance would undermine the WTO dispute settlement system. On the basis of extensive research on the purposes of WTO retaliation, namely through interpreting Article 22 of the DSU, examining the design of WTO treaty, assessing the academic writings/debates as well as the statements of arbitrators; several conclusions are made, of which the main one is that inducing compliance is not the sole purpose that WTO retaliation can pursue. Therefore compliance is not the only benchmark by which the effectiveness of WTO retaliation should be measured.</p>

Non-Compliance in WTO Dispute Settlement: Assessing the Effectiveness of WTO Retaliation from Its Purpose(s)

<p>The issue of non-compliance with the Dispute Settlement Body (DSB) recommendations and rulings emerges when the violator state fails to bring its inconsistent measures into conformity with its WTO obligations within a reasonable period of time. Compensation and suspension of concessions or other obligations (retaliation) are the only remedies provided under WTO law for cases of non-compliance. Many academic writings, as well as statements from WTO Members, have demonstrated pessimism concerning the effectiveness of these remedies, particularly retaliation. The central point of this thesis concerns three main issues: the problems of WTO retaliation, the question of the effectiveness of retaliation, and the purposes of retaliation. This thesis aims to provide another perspective, besides the common “harm-resulted” perspective, for assessing the effectiveness of WTO retaliation. Accordingly, it provides several approaches: (1) identification of the purpose of retaliation in order to assess its effectiveness; (2) analysis of the enquiry whether there are in fact several purposes of WTO retaliation; (3) examination of the question whether the presence of retaliation purposes other than that inducing compliance is within the ambit of WTO law; (4) consideration of retaliation as a way of inducing a mutually agreeable solution; and (5) consideration of the question whether any deviation from strict compliance would undermine the WTO dispute settlement system. On the basis of extensive research on the purposes of WTO retaliation, namely through interpreting Article 22 of the DSU, examining the design of WTO treaty, assessing the academic writings/debates as well as the statements of arbitrators; several conclusions are made, of which the main one is that inducing compliance is not the sole purpose that WTO retaliation can pursue. Therefore compliance is not the only benchmark by which the effectiveness of WTO retaliation should be measured.</p>