The document summarizes the key aspects of dispute settlement in the World Trade Organization (WTO). It outlines the improvements made relative to the prior GATT system, including establishing automatic procedures for establishing panels and adopting reports. The main stages of dispute settlement under the WTO are described as consultations, panel establishment, panel procedures, appellate review, implementation, and determination of a reasonable period of time for compliance. The document provides an example case between Antigua/Barbuda and the United States regarding gambling services to illustrate how the dispute settlement process works.

1. Dispute Settlement in
the WTO
SM Lutfur Rahman
@lowlylutfur

2. Historical development of the WTO dispute
settlement system
• The (WTO) dispute settlement is one of the most important innovations of the Uruguay
Round.
• There was a dispute settlement system under GATT 1947 that evolved quite remarkably
over nearly 50 years on the basis of Articles XXII and XXIII of GATT 1947.
• The current WTO system builds on, and adheres to, the principles for the management
of disputes applied under Articles XXII and XXIII of GATT 1947 (Article 3.1 of the
DSU). Of course, the Uruguay Round brought important modifications and elaborations
to the previous system

3. Shortcomings of the GATT DSS
• Appointment of panel, adoption of rulings, imposition of sanctions: done
through positive consensus
• No detailed procedures
• No fixed timetable
• Rulings easier to block
• Cases dragged on for years
• Very limited rules
• Overall an inefficient system; not very popular

4. Dispute Settlement under WTO:
Improvements over GATT, 1947
• It remedies the inherent defects of the GATT DSS
• Resulting in automatic establishment of panel & appellate body (AB), automatic
adoption of panel/ AB reports and automatic authorization of countermeasures against
the non-complying party
• Integrated framework applying to all agreements with only minor variations
• Provides more detailed procedures for each stage of dispute
• Establishes specific time frames and deadlines for prompt settlement of disputes
• Provision for appellate review
• Overall an efficient system
• Effectively used by members to settle more than 300 disputes in the last 12 years.

5. Instruments
• Article XXII and XXIII of GATT,1947
• Understanding on Rules and Procedures Governing
the Settlement of Disputes
• Few specific rules in other WTO agreements

6. Dispute Settlement in the WTO:
Scope
An integrated
system:
• Applies to all the multilateral
agreements
• A single set of rules for all
disputes
• Only a few specific rules in
some agreements

7. 7
Panel
Appellate Body
Ministerial Conference
Dispute Settlement
Body
(General Council)
Request for Panel
by WTO Member
Structure of the WTO DSS
• Dispute Settlement Body
(DSB)
• Panel and Appellate Body
• Parties: WTO Members
• WTO Secretariat

8. Main Procedures
Implementation
AppelateBody
Panel
Consultations 60 days
9 months
90 days
15 months

9. Basic Stages of Dispute Settlement:
Consultations
 Request for Consultations:
 In writing & state the reasons for request
 Forms Legal basis of complaint (Art.4.4
DSU)
 Notified to DSB and concerned Councils
& committees (Art. 4.4 DSU)
 Dispute not resolved: Request DSB for
establishment of Panel
Functions
• to “accord sympathetic
consideration to and accord
adequate opportunity for
consultation…”
• confidential, only between
the Members concerned
Third parties:
But, in some instances, other Members can request to be joined in the
consultations(Article 4.11 DSU) “substantial trade interest”

10. Consultations: if not successful
• If consultations fail to resolve the matter within 60
days from receipt of request…..
• Or if no response or no entering into consultations
• A request for establishment of a panel can be made

11. Establishment of panels
• Request for establishment:
• must “identify the specific measures at issue and provide a
brief summary of the legal basis of the problem sufficient
to present the problem clearly”

12. Panel Procedures: main steps
• Oral hearings (usually 2), on basis of written
submissions
• Descriptive part of report issued to parties
• Interim review based on draft report
• Final report issued to parties
• Final report circulated to all Members

13. Panel Procedures: other sources of input
• Third parties have make presentations
• need “substantial interest” (Article 10 DSU)
• Panels may seek
• factual information from any relevant source (Article 13 DSU)
• scientific or technical advice from an Expert review group
(Appendix 4 DSU)

14. Panel Procedures: duration
• As a general rule, 9 months from establishment of panel
to consideration of report for adoption (if no appeal)
• 12 months where report is appealed
(Article 20 DSU)

15. Appellate Review
• Appeals limited to
“issues of law and legal
interpretations
developed by the panel”
• Appeal only open to
parties to the dispute
Appellate Body
• 7 members
• members to have recognized
authority and expertise in
international trade law
• members unaffiliated with any
government

16. Appellate Review: report and adoption
Report of the Appellate Body:
• “may uphold, modify or reverse the legal findings and conclusions
of the panel” (Art. 17.12 DSU)
• Adoption of Appellate Body report: by reverse consensus
within 30 days of circulation to Members

17. Implementation
If there is a finding of violation:
• Member must bring the
measures into conformity
with its WTO obligations
• (Article 19 DSU)
 Member must inform DSB
of its intentions in for
implementation of the
recommendations (Article 1
DSU)

18. Implementation: reasonable period of time
• Determination of “reasonable period of time” for implementation:
• proposed by Member, and approved by DSB, or
• mutually agreed by the parties, or
• determined through arbitration:
• “guideline for the arbitrator”: 15 months from the date of adoption
(Article 21.3 DSU)

19. Case
Short title: US — Gambling
Complainant: Antigua and Barbuda
Respondent: United States
Third Parties: Canada; Chinese Taipei; European
Communities; Japan; Mexico; China
Agreements cited:
(as cited in request for
consultations)
Services (GATS):
Art. II, VI, VIII, XI, XVI, XVII
Request for Consultations received: 13 March 2003
Panel Report circulated: 10 November 2004
Appellate Body Report circulated: 7 April 2005
Article 21.3(c) Arbitration
Report circulated:
19 August 2005
Article 21.5 Panel Report circulated: 30 March 2007
Recourse to Article 22.6 Arbitration 21 December 2007

20. Thanks
Any Question?