Svetlana Zaitseva FAO Materials of the workshop on Resolving agricultural trade issues through the WTO organized by FAO in collaboration with Ukraine’s Ministry of Agrarian Policy and Food of Ukraine in Kyiv on June 7, 2017. http://www.fao.org/economic/est/est-events-new/wtokiev/en/ http://www.fao.org/europe/news/detail-news/en/c/892730/

1. WTO trade dispute settlement:
starting from the key points
Svetlana Zaitseva
Kiev
7 June 2017
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2. WTO dispute settlement
A trade dispute, it is always :
 a specific measure (law, government
regulation, court ruling, existing practice
(even private if state-controlled))
 affecting market access conditions
(conditions of trade) for another WTO
member, which
 potentially violates a balance of rights,
i.e. WTO rules
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3. WTO dispute settlement: what
should we know
 Only states can be parties to disputes, i.e. a
government vs another government or as a third
party
 Disputes can be initiated by any WTO member or
joinly by several countries (co-complainants)
 If a government begins a dispute it doesn’t mean
that business is standing by
 A dispute may not be initiated by the WTO
Secretariat, observer countries, international
organizations, regional blocs, or local authorities
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4. WTO dispute settlement: what is
important to know
Don’ts :
 Challenge violations of other
international treaties at WTO even if
trade agreements
 Refer settlement of a trade dispute
between Members to some other
“court” (e.g. the International Court at
The Hague)
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5. WTO dispute settlement: what is
important to know
Don’ts:
 Challenge trade violations to address
politics
 Reject a case on the political
factor/benefit grounds, etc.
 Demand pecuniary compensation for
loss (in a case)
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6. WTO dispute settlement:
following a procedure
 One may not impose countermeasures before
completing a dispute resolution procedure as
per the
UNDERSTANDING ON RULES AND PROCEDURES
GOVERNMENT THE SETTLEMENT OF DISPUTES
 … opportunities exist to reach agreement in any
stage of a dispute
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7. WTO dispute settlement:
important to know
 One may not initiate a dispute based on
notifications and/or the Trade Policy
Review Mechanism
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8. WTO dispute settlement: what
are we seeking
 “Recommendations or rulings made by the DSB
shall be aimed at achieving a satisfactory
settlement of the matter in accordance with the
rights and obligations under this Understanding
and under the covered agreements.”
Mutually agreed solution
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9. WTO dispute settlement:
substantiation
There should always be a legal basis for the
violation – a specific article or provisions of:
 WTO Agreement, GATT, covered agreements
(e.g. TBT, SPS…),
 GATS,
 TRIPS
 agreements with a limited number of parties
(e.g. Agreement on Government Procurement),
 the country’s commitments undertaken at WTO
accession
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10. WTO dispute settlement: role
of business
Business should :
 identify an issue (subject of a potential
dispute)
 assume what it believes has been
violated (agreements, articles…)
 collect an evidence base on its level
 build communication with a relevant
body (ministry) that will pursue the case
 Amicus curiae
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11. WTO dispute settlement: role of
government
 Listen to business and help it address the
issue by choosing a right strategy and
right tools
 Ensure transparency of its policies and
actions, particularly if it is about a
dispute
 Arrange interagency work and
coordination – Ministry of Agriculture
(and all services), Ministry of Economic
Development and Trade, Ministry of
Foreign Affairs, external experts, legal
support
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12. WTO dispute settlement: role of
government
 Ensure official efficient communication with a
responding party
 Ensure diplomatic follow-up of the case (via its
diplomatic mission in Geneva or in other country
where consultations and meetings can take
place)
 Ensure efficient interaction with the WTO
Committees, Secretariat, Panel, AB…
 Ensure compliance with the DSB ruling (as a losing
party) or monitor compliance therewith by a
losing party
 Consider dispute experience in formulation of its
trade policy and especially specific measures
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13. Dispute settlement is a teamwork
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14. WTO dispute settlement:
questions
 What is a trade dispute?
 What may not be disputed at the WTO?
 Is it possible to compensate the damage
caused by violation of WTO rules
financially?
 How can a farmer benefit from WTO
disputes?
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15. WTO dispute settlement:
disputing? Or…
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16. WTO dispute settlement
Thank you!
Svetlana Zaitseva
zaitsevas@yahoo.com
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