Bridges Weekly Trade News Digest • Volume 8 • Number 16 • 5th May 2004

Package Deal To Salvage DSU Negotiations?


The special (negotiating) session of the WTO Dispute Settlement Body (DSB) met on 30 April to consider progress in the review of the Dispute Settlement Understanding (DSU). The meeting focused on a forthcoming package of proposals by a group of six countries to salvage the negotiations. Argentina, Brazil, Canada, India, Norway and New Zealand are working on the package to facilitate consensus on issues such as the authority of the Appellate Body to refer a case back to the panel (remand authority) and conflicting timelines arising from retaliation procedures (sequencing). Other issues in the package include developing country concerns such as litigation costs, transparency, the expansion of third party rights and procedures for determining the lifting of sanctions authorised by the WTO. Mexico is working with the group but is not a full sponsor of the package.

In response to the forthcoming package, some developing countries said the package did not seem to achieve a good balance between systemic issues that affect the DSU system as a whole and developing country issues specifically. The African Group stressed that it would like to see its earlier proposals calling on the WTO Secretariat to provide stronger litigation support to developing and least-developed countries involved in a case reflected in the package. The group has also called for a dispute settlement fund. Such reforms would, in the opinion of the African Group, be crucial in solving the problem of lack of access to the DSU by developing and least-developed countries.

The apparent lack of enthusiasm by the US and the EC for the work of the group led some Members to question whether they would lend their support to the package once it is presented, of key importance to its viability.

Meanwhile, trade delegates indicated that a deadline set for 31 May this year to conclude negotiations (see BRIDGES Weekly, 3 March 2004) was likely to be missed. The next DSU negotiating session has been scheduled for 10 May, and the new draft proposal is likely to be tabled by its proponents at the meeting. In the meantime, consultations among Members and between Members and the Chair, Ambassador David Spencer (Australia), will continue.

ICTSD reporting; "’Magnificent Seven’ Offer Compromise As Clock Ticks Down to Deadline in May"; WTO REPORTER, 4 May 2004.