Cross-Retaliation in TRIPS and GATS: Options for Developing Countries
16th October 2008
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ICTSD Roundtable
9h30-12h00
Friday, 17th October 2008
World Meteorological Organisation
Room C1
*Avenue de la Paix 7 bis, 1202 Geneva
The objective of the roundtable was to examine options and challenges in the use of cross-retaliation in TRIPS and GATS with a view to enable developing countries to make effective use of it under the WTO Dispute Settlement system.
Professor Frederick M. Abbott and Dr. Arthur E. Appleton presented the findings of two studies, commissioned by ICTSD, in which they respectively investigate the legal, technical and economic problems raised in the use of cross-retaliation under TRIPS and GATS, and present possible solutions to these problems.
Background
Cross-retaliation refers to the suspension of concessions in a sector of trade different than the sector in which the trade injury is suffered, including under a different WTO agreement. The incorporation of the “new area” agreements of TRIPS and GATS, as a consequence of the Uruguay Round negotiations, introduced a more complex era in dispute settlement and retaliation. For many developing countries, suspension of concessions in TRIPS or GATS may represent a valuable alternative option when it is not practical or effective for them to rely on standard retaliation. This is often the case due to the unbalanced nature of trading relations and the asymmetry in economic power.
However, this option has rarely been used by developing countries. Thus, the complex legal and technical problems, as well as the economic consequences, of resorting to cross-retaliation under the TRIPS Agreement and the GATS need to be examined comprehensively, in order for developing countries to make effective use of this option.
Professor Abbott has investigated cross-retaliation under the TRIPS Agreement. He presents the range of legal options available to governments considering the suspension of concessions under the TRIPS Agreement particularly in terms of identifying the level of suspension and avoiding legal conflicts.
Dr. Appleton has identified and outlined options on how to implement cross- retaliation within the GATS. In this connection, he has examined Modes and sectors of service supply where cross retaliation would be legally and technically feasible while creating an incentive for the violating member to comply without causing harm to the economy of the retaliating member.
After the presentations, comments were made by a number of distinguished experts and delegates. An open discussion with the audience followed. (Programme attached). The two studies by Professor Abbott and Dr. Appleton were made available at the meeting.
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