WTO DISPUTE SETTLEMENT Asia Regional Dialogue on Managing

WTO DISPUTE SETTLEMENT Asia Regional Dialogue on Managing Trade Conflicts Valerie Hughes Director, Legal Affairs Division WTO New Delhi 28 November 2012

Requests for Consultations (452 as of 19 November 2012) 26/10/2021 2

TOTAL DS ACTIVITY (as of 19 November 2012) Requests for consultations: 452 Panels established: 196 Panels composed: 166 Panel reports adopted: 172* Appellate Body reports adopted: 110* *Includes Article 21. 5 reports 26/10/2021 3

COMPARE WTO: 452 in 17 years ICJ: 152 in 67 years ITLOS: 19 in 16 years GATT: 300 in 48 years NAFTA: 3 in 18 years 26/10/2021 4

Consultations According to Agreement at Issue

CURRENT PANEL ACTIVITY Active panels: China – AD Measures on Broiler Products (US) China – Exportation of Rare Earths (US, EC, Japan) China – AD Duties on X-Ray Equipment (EU) US – CVD on Certain Products from China US – Boeing (compliance panel) (EU) 26/10/2021 6

CURRENT PANEL ACTIVITY Active panels: EC – Airbus (compliance panel) (US) EC – Seal Products (Canada, Norway) Canada – Feed-In Tariff/Renewable Energy (EU, Japan) 26/10/2021 7

Current Activity Before Appellate Body US-COOL (Canada, Mexico) Arbitrator (former ABM Giorgio Sacerdoti) is determining reasonable period of time for implementation under DSU Article 21. 3(c). 26/10/2021 8

Current members of the AB From left to right: David Unterhalter, Ujal Singh Bhatia, Peter Van den Bossche, Yuejiao Zhang, Ricardo Ramírez. Hernández, Thomas R. Graham and Seung Wha Chang 26/10/2021 9

COMING SOON Panels established / not yet composed: US – CVD on Carbon Steel Products from India Australia – Tobacco Plain Packaging (Ukraine) India – Agricultural Products (US) China – AD and CVD Duties on Autos (US) 26/10/2021 10

COMING SOON? Disputes at consultations phase: Total: 18 potential disputes 4 against Argentina: Import licensing by EU, US, Japan, Mexico 3 against US: Viet Nam -- AD on Shrimp Argentina -- importation of meat, lemons 26/10/2021 11

COMING SOON? Disputes at consultations phase (continued): 3 against the EU: Indonesia for AD on Fatty Alcohols Argentina for biodeisel imports China for renewable energy sector 26/10/2021 12

COMING SOON? Disputes at consultations phase (continued): 2 against Australia Honduras and DR for Plain Packaging 2 against China US on Autos Mexico on textiles 26/10/2021 13

COMING SOON? Disputes at consultations phase (continued): Armenia Ukraine internal sale of cigarettes, tobacco South Africa Brazil for AD on frozen chicken meat Turkey India on cotton yarn safeguard 26/10/2021 14

Success of WTO Dispute Settlement system Members resort to it regularly, often 26/10/2021 15

Most Frequent Complainant/Respondent As of 19 November 2012 Member Cases Initiated Member Cases Defended US 103 US 120 EU 87 Canada 33 China 30 Brazil 26 India 21 Mexico 23 Argentina 21 India 21 Canada 17 Argentina 18 Japan 15 Japan 16 Brazil 14 Korea 15 Korea 14 Thailand 13 Mexico 14 26/10/2021 16

BROAD PARTICIPATION 100 Members have participated in some capacity in WTO dispute settlement = 64 % of membership 82 Members as third parties 26/10/2021 17

BOTH DEVELOPED AND DEVELOPING MEMBERS HAVE CONFIDENCE IN THE SYSTEM 26/10/2021 18

WTO vs RTA WTO dispute settlement mechanism preferred 26/10/2021 19

IS WTO DISPUTE SETTLEMENT EFFECTIVE? 26/10/2021 20

IS WTO DISPUTE SETTLEMENT EFFECTIVE? ~ 90 % COMPLIANCE RATE 26/10/2021 21

RESPECTED BODY OF LAW PROCEDURAL Burden of proof Standard of review Due process SUBSTANTIVE Treaty interpretation Variety of trade agreements clarified Security and predictability 26/10/2021 22

IN SUM WTO DISPUTE SETTLEMENT Is used often and regularly By a large cross section of developed and developing country Members Is responsive to developed and developing It works (many disputes resolved before « court » but if not, high rate of compliance) Preferred to RTA mechanisms Respected body of law 26/10/2021 23