INTRODUCTION

World Trade Organization (WTO) is the only

international organization dealing with the global

rules of trade.
Run by member governments. All major decisions
made by the membership as a whole.
Place to settle trade disputes - try to sort out the
trade problems they face.

OBJECTIVES OF WTO
To promote world trade in a manner that benefits

every country.
Developing countries secure a better balance in the
expansion of international trade.
To enhance competitiveness among all trading
partners.

MAIN
PRINCIPLES OF
WTO

NON-DISCRIMINATION
Should not discriminate its trading partners.

Two major components ;

a) Most-favored-nation (MFN) rule.
Been main features of international trade policy for
a long time. The term means equal trade
advantages as the members.

NON-DISCRIMINATION
b) National treatment
Under national treatment, grants a particular right,
benefit or privilege to its own citizens.
Must provide equal treatment to those citizens of
other states that are participating.

More beneficial for less developed countries

Giving them more time to adjust, greater flexibility

and special privileges; over three-quarters of WTO

members are developing countries and countries in
transition to the market economies.

Transparency
The WTO members are required to publish their

trade regulations, to maintain institutions allowing

for the review of administrative decisions affecting
trade, to respond to requests for information by
other members, and to notify changes in trade
policies to the WTO.

Safety Valves
Governments are able to restrict trade in order to

protect the environment, public health, animal

health and plant health.
There are three types of provision in this connection.

Articles Aimed at Ensuring Fair Competition

Include the right to impose countervailing duties on

imports that have been subsidized and antidumping

duties on imports that have been dumped

Provisions Permitting Intervention in Trade for

Economic Reasons
there are provisions allowing actions to be taken in

case of serious balance of payments difficulties or if a

government desires to support an infant industry

The Stages of Dispute Settlement of WTO

Definition of disputes :
as a specific disagreement concerning a matter of
fact, law or policy in which a claim or assertion of one
party is met with a refusal, counter claim or denial by
another .

Consultation
Consultation is informal negotiation that gives

opportunity to the parties of dispute to resolve the

conflict.
The request for the consultation must be writing and
address all the issues an reasons to the request.
Respondent should reply to the request within ten
days.

If the respondent failed to respond or find the

solution to satisfies all the parties within 60 days,

they can request to the Dispute Settlement Body to
establish panel.
This problem can refer to the expert for the
recommendation.
In this stage will involve third party to solve th
problem.

Panel Stage
The matter is refer to a panel of experts for their

recommendation.
This stage requires up to 45 days for a panel to be
appointed and plus 6 months for the panel to
conclude.
A request for establishment of a panel must be made
in writing and is addressed to the Chairman of the
Dispute Settlement Body (DSB)

The responding member can block the panels

establishment in the first DSB meeting which the

request is made.
However, the panel will establish unless the DSB
decides by consensus not to establish the panel.

Appeal
After the panel report submitted to the parties and if

there are an objection with the panel conclusion they

can appeal the report.
The report must be appeal before the Dispute Body
Settlement adopts it and it will be refer to the
Appellate Body.
Only the parties to disputes are allowed to appeal
and third party may only participate in the appeal
which known as third participant

Surveillance or Supervision of The

Implementation
The member will be given 30 days to inform the

Dispute Settlement Body on how the result will be

implement.
This implementation will be based on the appellate
report or final panel.
For the country, they will be give a reasonable time
for the implementation as it cannot be achieved
quickly.

Related cases
TUNA-DOLPHIN CASE

-Us banned the importation of tuna from Mexico due to the

incidental kill of dolphins caused by the perse seine nets
-GATT stated that United States could not ban tuna imports from
Mexico because it had not explored other less-trade restrictive ways
of achieving the same environmental objective
-panel found that one country could not impose its standards on
another country to protect a renewable resource outside its own
territory and labeling of dolphin-safe did not conform to GATT
standards.

 BANANA CASE

-European Union (EU) introduced a single import policy that

imposed quotas, duties and import licensing on banana imports into
EU countries (trade barriers)
-US and some other countries such as Mexico and Honduras
complaint WTO because the system was unfair discriminated against
them.
-panel found that it also favored some domestic countries
-in 1999 WTO approve 100 % tariff of EU imports into US.

Opinion of the effectiveness on dispute

settlement of WTO

Current issues
US FAILS TO MEET ITS OBLIGATION IN THE WTO BOEING CASE

-United States (US) has not rely on obligations to follow with a World
Trade Organization (WTO) by ruling on illegal subsidies which is
Boeing case
-apply for consultation with US at 24 September 2012 to settle dispute.
- EU can apply for panel to review the issues.

 WTO EFFECTIVENESS IN RESOLVING THE EUROPIAN UNION-

UNITED STATES (EU-US)

TRADE CONFLICT
-example case between EU and US is Banana cases ( took many years to
resolve)
-US and EU as the frequent user of the WTO dispute settlement system,
especially against each other.