WTO’s Dispute Settlement Body
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Subject: IR
Context:
- The World Trade Organization upheld a complaint by China over additional duties slapped by the U.S. on some $250 billion worth of Chinese goods.
- A panel of experts set up by WTO’s Dispute Settlement Body ruled the tariffs were “inconsistent” with global trade rules, and recommended that the U.S. “bring its measures into conformity with its obligations”.
Concept:
- Settling disputes is the responsibility of the Dispute Settlement Body (the General Council in another guise), which consists of all WTO members.
- The Dispute Settlement Body has the sole authority to establish “panels” of experts to consider the case, and to accept or reject the panels’ findings or the results of an appeal. It monitors the implementation of the rulings and recommendations, and has the power to authorize retaliation when a country does not comply with a ruling.
- The Appellate Body was established in 1995 under Article 17 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU).
- It is a standing body of seven persons that hears appeals from reports issued by panels in disputes brought by WTO Members.
- The Appellate Body can uphold, modify or reverse the legal findings and conclusions of a panel, and Appellate Body Reports, once adopted by the Dispute Settlement Body (DSB), must be accepted by the parties to the dispute. The Appellate Body has its seat in Geneva, Switzerland.