Least Developed Countries in the WTO Dispute Settlement System

Netherlands International Law Review - Tập 60 - Trang 375-409 - 2015
Sharmin J. Tania1
1Macquarie University, Sydney, Australia

Tóm tắt

Existing literature on the developing countries’ experience with the WTO dispute settlement system (DSS) has paid scant attention to the participation issue of the least developed countries (LDCs), which currently form one-fifth of the WTO membership but constitute less than one per cent of participation in DSS. This article fills this gap by examining several dimensions of LDCs’ participation. Upholding the significance of LDCs’ participation it explores the challenges faced by LDCs at the pre-litigation, litigation and implementation stage emanating from power asymmetries, resource constraints and flawed DSS remedies. The article particularly looks into the nature of LDCs’ participation, which is mostly in the category of third parties. Ln doing so, it evaluates the third-party participation of Benin and Chad in US — Upland Cotton to ascertain whether third-party participation could be an alternative for LDCs to participate as co-complainants. It analyzes the special and differential treatment provisions of the DSU to further scrutinize whether these provisions and the way they are interpreted and applied in the WTO Panel Reports and the Appellate Body Reports are facilitative for LDCs’ participation. Finally, the article makes recommendations to address the challenges on the part of LDCs and to reform DSS so as to make it effective for LDCs’ participation.

Tài liệu tham khảo

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Yusuf ‘The Marginalisation of African Agricultural Trade and Development: A Case Study of the WTO’s Efforts to Cater to African Agricultural Trading Interests Particularly Cotton and Sugar’, 17 African JICL (2009) p. 213 at p. 234. Tanaka, sup ran. 21, at pp. 150–158, 173–179. DSU, Arts. 3.12, 4.10, 8.10, 12.10, 12.11, 21.2, 21.7, 21.8, 24.1, 24.2, and 27.2. DSU, Arts. 12.10, 12.11, 21.2, and 24.1. WTO CTD, ‘Concerns Regarding Special and Differential Treatment Provisions in WTO Agreement and Decisions’, WT/COMTD/W/66 (16 February 2000), p. 31 (Note by the Secretariat); A. Alavi, ‘On the (Non-) Effectiveness of the World Trade Organization Special and Differential Treatments in the Dispute Settlement Process’, 41 Journal of World Trade (2007) p. 319. Decision of 5 April 1966 on Procedures under Article XXIII, GATT BISD, 14th Supp, p. 18, available at: www.wto.org/english/tratop_e/dispu_e/disp_settlement_cbt_e/a2s1p1_e.htm (accessed 31 July 2011) (hereinafter 1966 Procedure). The last line of Art. 3.12 states that ‘to the extent there is a difference between the rules and procedures of Articles 4, 5, 6 and 12 and the corresponding rules and procedures of the Decision, the latter shall prevail’. M.E. Footer, ‘Developing Country Practice in the Matter of WTO Dispute Settlement’, 35 Journal of World Trade (2001) p. 55 at p. 63. The 1966 Procedure, para. 1. Panel Report, European Communities: Trade Description of Scallops: Request by Canada (EC — Scallops (Canada)), WT/DS7/R (mutually agreed solution circulated on 5 August 1996); Panel Report, European Communities: Trade Description of Scallops: Request by Peru and Chile (EC — Scallops (Peru and Chile)), WTO Docs. WT/DS12, WT/DS14 (mutually agreed solution circulated on 5 August 1996); cited in Footer, supra n. 146. Minutes of Meeting of the DSB, WT/DSB/M/7 (27 October 1995), cited in WTO Committee on Trade and Development, ‘Concerns Regarding Special and Differential Treatment Provisions in WTO Agreement and Decisions’, WT/COMTD/W/66 (16 February 2000), p. 32 (Note by the Secretariat). 2002 LDC Proposal, supra n. 9; WTO Dispute Settlement Body Special Session, ‘Text for LDC Proposal on Dispute Settlement Understanding Negotiations’, TN/DS/W/37 (22 January 2003) (Communication from Haiti). 2002 LDC Proposal, supra n. 9, para. 3; Text for LDC Proposal on DSU, supra n. 150, para. 1. Art. 4.7 of the DSU provides that ‘if the consultations fail to settle a dispute within 60 days after the date of receipt of the request for consultations, the complaining party may request for the establishment of a panel’. Art. 4.8 of the DSU provides that in the case of an emergency, including those that concern perishable goods, a party may request the establishment of a Panel after the completion of 20 days of the date of receipt of the request for consultation. DSU, Art. 12.10. The dispute was settled by mutual agreement between the parties: ‘Pakistan: Patent Protection for Pharmaceutical and Agricultural Chemical Products’, WT/DS36 (7 March 1997) (Notification of a Mutually-Agreed Solution). Minutes of the Meeting of the DSB, 15 and 16 July 1996, WT.DSB/M/21 (5 August 1996). Ibid., p. 4; Text for LDC Proposal on DSU, supra n. 150, at p. 32. 2002 LDC Proposal, supra n. 9, para. 4; Text for LDC Proposal on DSU, supra n. 150, para. III. Third sentence of Art. 12.10 of the DSU (emphasis added). Belize, Cameroon, Côte d’Ivoire, Dominica, the Dominican Republic, Ghana, Grenada, Jamaica, Saint Lucia, Saint Vincent and the Grenadines, Senegal, and Suriname (the ‘ACP third parties’): EC — Bananas III, supra n. 60, para. 5.1. Ibid., para. 5.17. The Panel in the EC — Bananas referred to Art. 10 and Appendix 3 as the provisions dealing with the right of the third parties: ibid., para. 7.5. However, the phrase ‘which have been raised by the developing country Member’ can be read as qualifying either ‘the relevant provision on special and differential treatment’ or the ‘agreement’, which are the subject-matter of the dispute. Panel Report, United States — Continued Dumping and Subsidy Offset Act of 2000 (US — Offset Act (Byrd Amendment)), WT/DS217/R, WT/DS234/R (adopted 27 January 2003). Ibid., paras. 7.87–7.89. Alavi, supra n. 143, at p. 323. 2002 LDC Proposal, supra n. 9, paras. 7–8; Text for LDC Proposal on DSU, supra n. 150, para. IV. If the developing country that invokes this provision is the complainant, then ‘particular attention’ is asked to be paid by fixing a shorter period of implementation. This will enable the complainant developing country to obtain the findings of the Panel or the Appellate Body to be implemented within the shortest period. Conversely, if the developing country that invokes this provision happens to be the respondent, then paying particular attention means fixing a longer time-period for the implementation of the rulings. This enables the developing country member to have more flexibility to implement the findings against it. However, difficulties arise when both parties are developing members. Award of the Arbitrator, Indonesia — Certain Measures Affecting the Automobile Industry, Arbitration under Article 21.3(c) of the Understanding on Rules and Procedures Governing the Settlement of Disputes (Indonesia — Autos (Article 21.3(c))), WTO Docs. WT/DS54/15, WT/DS55/14, WT/DS59/13, WT/DS64/12 (7 December 1998). Ibid., para. 24. Award of the Arbitrator, European Communities — Customs Classification of Frozen Boneless Chicken Cuts, Arbitration under Article 21.3(c) of the Understanding on Rules and Procedures Governing the Settlement of Disputes (EC — Chicken Cuts (Article 21.3(c))), WT/DS269/13, WT/DS286/15, ARB-2005-4/21 (20 February 2006). In EC ô Chicken Classification 21.3(c), the Arbitrator summarized the WTO jurisprudence in this regard in para. 82. Award of the Arbitrator, European Communities — Export Subsidies on Sugar, Arbitration under Article 21.3(c) of the Understanding on Rules and Procedures Governing the Settlement of Dispute (EC — Export Subsidies on Sugar (Article 21.3(c))), WT/DS265/33, WT/DS266/33, WT/DS283/14, ARB-2005-3/20 (28 October 2005). Ibid., paras. 98–104. Award of the Arbitrator, United States — Measures Affecting the Cross-Border Supply of Gambling and Betting Services, Arbitration under Article 21.3(c) of the Understanding on Rules and Procedures Governing the Settlement of Disputes (US — Gambling (Article 21.3(c))), WT/DS285/13, ARB-2005-2/19 (9 August 2005). Ibid., paras. 56–60. Ibid., paras. 62–63. DSU, Art. 24.1. Panel Report, US — Upland Cotton, supran. 15, para. 7.1410. DSU, Art. 24.1. Ibid., Art. 27.2. Shaffer, supra n. 10, at pp. 6–9, 16. Ibid. Bown and Hoekman, supra n. 7. H. Nordstrom and G. Shaffer, ‘Access to Justice in the World Trade Organization: A Case for a Small Claims Procedure?’, 7 World Trade Review (2008) p. 587. The Advisory Centre was established under the Agreement Establishing the Advisory Centre on WTO Law (14 July 2001), available at: www.acwl.ch/e/documents/agreement_establishing.pdf (accessed 15 July 2013). Agreement Establishing the Advisory Centre on WTO Law, Art. 7, Annex III. ACWL, ‘LDCs Are Entitled to the Services of ACWL without Becoming ACWL Members’, available at: www.acwl.ch/e/ld_countries/ld_countries.html (accessed 14 July 2013). ACWL, Decision 2004/3 Adopted by the Management Board on 26 March 2004, Billing Policy and Revised Time Budget, ACWL/MB/D/2004/3 (26 March 2004). C.P. Bown and R. McCulloch, ‘Developing Countries, Dispute Settlement, and the Advisory Centre on WTO Law’, 19 The Journal of International Trade & Economic Development (2010) p. 58 at p. 33. The ACWL consists of an Executive Director, two Deputy Directors, two Senior Counsel, four Counsel, one Junior Counsel, one Legal Assistant and two Office Administrators. Hudec, supra n. 52, at p. 84. Brazil and Uruguay proposed that Panels be given authority to propose an ‘indemnity of a financial character’ in complaints by developing countries: K.W. Dam. The GATT: Law and International Economic Organisation (Chicago, University of Chicago Press 1970) p. 368, quoting report of the Ad Hoc Group on Legal Amendments to the General Agreement, reprinted in GATT, Expansion of Trade of the Developing Countries (December 1966) p. 112 at p. 119. 2002 LDC Proposal, supra n. 9, para. 13 Hudec, supra n. 52, at p. 85. Ibid. Jagdish Bhawati has proposed that the defending country provides cash compensation to the complaining country, which could then be donated to the exporting industry: J. Bhagwati, ‘After Seattle: Free Trade and the WTO’, 77 International Affairs (2001) p. 15 at p. 28; similar argument has also been made in C. Barfield, ‘WTO Dispute Settlement System in Need of Change’, 37 Intereconomics (2002) p. 131; C. Carmody, ‘Remedies and Conformity under the WTO Agreement’, 5 Journal of International Economic Law (2002) p. 307; R. MacLean, ‘The Urgent Need to Reform the WTO’s Dispute Settlement Process’, 8 International Trade Law and Regulation (2002) p. 137. Jide Nzelibe argued that collective or third-party sanctions are likely to increase the global level of protectionism without any offsetting compliance benefits: Nzelibe, supra n. 11, at pp. 321–322; B. Mercurio, ‘Why Compensation Cannot Replace Trade Retaliation in the WTO Dispute Settlement Understanding’, 8 World Trade Review (2009) p. 315; Bronckers and Baetens considered the significance of financial payments for the WTO system: Bronckers and Baetens, supra n. 56. 2002 LDC Proposal, supra n. 9, para. 13. Ibid., para. 14. K.M.W. Mitchell, ‘Developing Country Success in WTO Disputes’, 47 Journal of World Trade (2013) p. 77 at p. 90. ACWL, supra n. 188. Busch and Reinhardt, supra n. 29, at p. 451. Kessie and Addo, supra n. 72, at p. 15. The development institutions include the United Nations Commission on Trade and Development, the United Nations Development Programme, the International Food Policy Research Institute, the Food and Agriculture Organization, and the World Health Organization. Redressing the asymmetries of powers is one of the 12 goals of WTO dispute settlement, identified by Professor John H. Jackson: J.H. Jackson, Sovereignty, the WTO and Changing Fundamentals of International Law (Cambridge, Cambridge University Press 2006) pp. 147–151. Bronckers and Baetens, supra n. 56, at p. 303.