Question

Explain/define briefly the organs of the WTO dealing with dispute settlement (DSB, Panels, Appellate Body)

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Answer 1

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WTO (World trade organization) is the only organization that deals with the rules for Global trade. It ensures that there is free and smooth flow of trade and rules are followed by all parties involved in the trade. During trade there can arise disputes / conflicts among the government bodies of different countries involved in the trade. To settle/resolve such disputes, WTO have Dispute settlement bodies/organs and procedures in place. We are going to discuss the main DSB organs in WTO:

DSB

Dispute settlement body's main function is to ensure that the settlement process is correctly followed. All the members of the WTO are part of DSB. DSB can establish panels and also have authority to implement rules. The DSB meeting is held periodically to address any changes in the process or any addition or deletion in any other organ of the WTO Dispute settlement. Decisions taken by the chairperson of the DSB is final and implemented, there is no voting system or no necessity to ask any of the member about their opinion. If any member wants to stop the decision from finalizing, they have to be present in the meeting and raise their voice.

The Director General and the WTO secretariat

This acts as a mediator if there is a non-agreement on the final decision made by the DSB on the dispute settlement. The Director General can call upon for a meeting and review the decisions and analysis done by the DSB. The WTO secretariat deals with the administrative tasks of the Dispute settlement process.

Panels

Panels are formed by well qualified independent individuals. Ideally there will be 3 people in the panel but it can go upto 5 people. These panel members are not permanent, they keep changing from time to time. The panel reviews all the legal aspects and all the relevant facts about the dispute case , prepares a report and submits to the DSB. This report will have summary and conclusions about the genuineness of the case of either parties. It also keeps a check on the actions of the WTO members, and makes sure that there is not breach of rules from any of them.

Appellate body

Appellate body is a permanent body that consists of 7 members and they look after the legal aspects of the reports submitted by the panels (members of the panel). This is a new addition to the Dispute settlement body. Earlier there wont be any questions made on the Panel report and that was considered final. But, now if any party is dissatisfied by the panel report they can file a case at the Appellate body and get it rechecked.

Arbitration/Arbitrators

This is a rarely used organ of the WTO dispute settlement process. Arbitration can be used as an alternative method to solve the disputes.

Experts

Sometimes disputes involves much more than business deals or trades. It can relate to some scientific areas and health related aspects which will not be able to resolved by the panels and the Appellate body. These kind of cases need much more expert knowledge in the science and health field. Hence such experts are referred to by the DSB.