Note_on_Chapter_4.docVIP

Topic 4 UNDERSTANDING THE WTO: SETTLING DISPUTESA unique contribution Dispute settlement is the central pillar 中心支柱 of the multilateral trading system, and the WTO’s unique contribution to the stability of the global economy. Without a means of settling disputes, the rules-based system would be less effective because the rules could not be enforced. The WTO’s procedure underscores 强调 the rule of law, and it makes the trading system more secure and predictable. The system is based on clearly-defined rules, with timetables for completing a case. First rulings are made by a panel and endorse 支持 d or rejected by the WTO’s full membership. Appeals 上诉，诉求 based on points of law are possible. However, the point is not to pass judgement. The priority 优先 is to settle disputes, through consultation 磋商 s if possible. By July 2005, only about 130? of the nearly 332 cases had reached the full panel process. Most of the rest have either been notified as settled “out of court” or remain in a prolonged 旷日持久的 consultation phase 阶段 — some since 1995. Principles: equitable 公正 , fast, effective, mutually 相互地 acceptable Disputes in the WTO are essentially about broken promises. WTO members have agreed that if they believe fellow-members are violating 违反 trade rules, they will use the multilateral system of settling disputes instead of taking action unilaterally 单方面地 . That means abiding by 遵守 the agreed procedures, and respecting judgements. A dispute arises when one country adopts a trade policy measure or takes some action that one or more fellow-WTO members considers to be breaking the WTO agreements, or to be a failure to live up to obligations. A third group of countries can declare that they have an interest in the case and enjoy some rights. A procedure for settling disputes existed under the old GATT, but it had no fixed timetables, rulings were easier to block, and many cases dragged on 拖延 for a long time inconclusively 悬而未决地 . The Uruguay 乌拉圭 Round agreement intr