IBL Week 7

12 flashcards · Other · by Daniel F.

World Trade Organization What are its functions and agreements
Established in 1995, 164 members 98% of trade functions ensuring that trade flows as smoothly, predictably and freely as possible; serving as a forum for negotiating trade agreements, Settling trade disputes between its members agreements set of rules and commitments that WTO members agree to follow in their trade relations with one another covers goods (such as GATT), services (such GA T S), and intellectual property (such as TRIPS). establishes the principles of liberalization and permitted e…
Trade and tariff: Market access principles of the WTO
Article II GATT - tariff barriers Tariffs are the only permissible form of protection Objective: reduce, eliminate, bind tariffs Each state commits to how much tariff will be on a product and adheres to it Article XI GATT - non-tariff barriers prohibits any restrictions that are not tariffs: quotas, import or export licenses or other measures on imports or exports exceptions: export restrictions to alleviate critical food shortage; import restrictions relating to agriculture and fisheries quota…
Trade and tariff: Non-discrimination principles of the WTO
Article I GATT (Most-Favoured Nation Treatment) Any advantage, favour, privilege or immunity accorded to products of one country should be granted immediately and unconditionally to like products of Contracting Parties Horizontal non-discrimination principle: prohibits a country from discriminating between countries E.g. Prohibits discrimination between like products originating in, or destined for, different countries Foreign parity Article III GATT (National Treatment) Once imported, a state…
Exceptions for GATT
Article XX GATT (general exceptions) Allows violations of GATT for legitimate policy objectives E.g. public morals, health, environmental protection Subject to non-discrimination requirements Article XXI GATT (Security exceptions) Permits actions violating GATT for essential security interests Self-judging exception for war, fissionable materials, arms trade Controversial due to broad self-defined security scope Article XXIV (Regional integration exceptions) Lays out requirements for WTO-compat…
Dispute settlement organs of the WTO
the Dispute Settlement Body the Dispute Settlement Panels, and the Appellate Body.
The Dispute Settlement Panel
ad hoc body made up of three persons nominated by the WTO Secretariat Panel members serve in their individual capacities and not as representatives of the WTO members assess objectively the matter referred to it and makes findings that will help the DSB to make recommendations and rulings to resolve the dispute
Appellate Body
Standing appeals board made up of 7 appointed by the DSB for four-year terms reviews decisions of panels on issues of law AB may uphold, modify, or reverse a panel’s findings and conclusions
Dispute settlement Procedure in the WTO
Initiation Complaint formally raised by requesting consultations with other member(s) 60 days for consultations to resolve dispute If fails, complainant can request establishment of panel Good Offices, Conciliation, Mediation Voluntary alternative means to resolve dispute at any stage Good offices - WTO director offers to mediate Conciliation - objective assessment by neutral party Mediation - procedure to facilitate mutually agreed solution Arbitration As an alternative to full panel process,…
Initiation
Complaint formally raised by requesting consultations with other member(s) 60 days for consultations to resolve dispute If fails, complainant can request establishment of panel
Alternative Dispute Resolution Mechanisms in the WTO
Negotiation Process of reaching an agreement through discussion between two parties to a dispute Mediation Good offices and Conciliation Mediation: Involves the use of a third party who transmits and interprets the proposals of the principal parties and sometimes advances independent proposals (good offices and conciliation) Arbitration method of dispute resolution involving one or more neutral third parties who are usually agreed to by the disputing parties and whose decision is binding
Arbitration in the WTO dispute process
arbitration agreement must be formed Ousts the jurisdiction of the domestic court(s) that would ordinarily be competent to the dispute authorises an arbitral tribunal to decide the dispute instead Parties’ agreement to arbitrate could be reached before or after a dispute has arisen Arbitrators the parties to a dispute choose their arbitrator(s) no qualifications required all arbitrators must be and remain impartial arbitration laws provide a fallback or default appointment mechanism Seat of arb…
The Dispute Settlement Body
establishes panels and adopts panel/AB reports, monitors implementation of rulings and recommendations authorizes the suspension of concessions and other obligations in appropriate cases. establishes panels, adopts panel/AB reports and authorizes retaliation unless there is a consensus against it (known as negative/reverse consensus).