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TWN
Info Service on WTO and Trade Issues (May24/16) At the regular Dispute Settlement Body (DSB) meeting on 24 May, the US categorically told the 130 members that calls for the restoration of the AB will undermine the ongoing reform of the WTO’s dispute settlement system (DSS). The US statement is a clear indication that there will not be any binding “Appeal/Review” mechanism with demonstrable adjudicating bodies like the AB, said people involved in the discussions. Trade ministers at the WTO’s 13th ministerial conference that concluded in Abu Dhabi on 2 March outlined the following mandate: “* Recalling our commitment made at our Twelfth Session to conduct discussions with the view to having a fully and well-functioning dispute settlement system accessible to all Members by 2024, we take note of the works done thus far. * We recognize the progress made through this work as a valuable contribution to fulfilling our commitment. We welcome all submissions from Members that help advance our work. * We instruct officials to accelerate discussions in an inclusive and transparent manner, build on the progress already made, and work on unresolved issues, including issues regarding appeal/review and accessibility to achieve the objective by 2024 as we set forth at MC12.” Given the US statement at the DSB meeting, the MC13 mandate to conclude the reform of the dispute settlement system by the end of the year is unlikely to happen, as both the incumbent US administration as well as any new administration in Washington after the November elections will likely not agree to a robust binding enforcement function at the WTO, said people familiar with the development. Nevertheless, Colombia, on behalf of the 130 members, once again pressed for an expeditious filling of the vacancies at the AB on grounds that its continued dysfunction is seriously affecting the overall WTO dispute settlement system against the best interest of the members. It regretted for the 76th time that members have not been able to launch the selection processes to fill the vacancies at the AB. Colombia said the ongoing DSS reform discussions should not prevent the Appellate Body from continuing to operate fully, and that members shall comply with their obligations under the Dispute Settlement Understanding (DSU) to fill the vacancies as and when they arise. Two dozen members intervened during the meeting to support the joint proposal tabled by Colombia. They cited the MC12 and MC13 mandates for having a fully and well-functioning dispute settlement system accessible to all members by 2024. The DSB chair thanked the facilitator, Ambassador Usha Dwarka-Canabady of Mauritius, for her report to the General Council on 22-23 May on her discussions to date and encouraged members to work closely with her in the dispute settlement reform discussions. The Chair added that he was ready to support the facilitator in all her efforts towards achieving a positive outcome within the mandated time. At the General Council meeting, the facilitator presented “a work plan for the way forward, which may be adjusted, as appropriate.” She said that she intends to “convene formal Heads of Delegation meetings once a month.” The purpose of these meetings, she said, “will be to hear updates on the technical work from the experts; allow Members to share views on how to take the work forward; try to resolve issues that can be handled only at the HoDs level; and allow HoDs to provide the necessary political guidance and impetus to experts, as necessary.” OTHER ISSUES Also at the DSB meeting, on certain European Union measures concerning palm oil and oil palm crop-based biofuels (DS600), the EU said that it intends to “implement the panel ruling in DS600, which was formally adopted by the DSB on 26 April.” The EU said that it needs a reasonable period of time to implement the ruling and that it was keen to discuss and agree with Malaysia on the length of this period of time at the earliest available opportunity. Malaysia, which raised the dispute against the EU, said emphatically that the panel ruling serves to preserve the integrity of the multilateral trading system. Malaysia said the panel ruling ensures fairness in international trade, and that it stands ready to work positively with the EU on this matter to ensure effective implementation. On the agenda item on Australia – Anti-Dumping and Countervailing Duty Measures on Certain Products from China (DS603), Australia said it intends to promptly implement the panel ruling in DS603 which was formally adopted by the DSB on 26 April. It said that it would nevertheless need a reasonable period of time to implement the ruling and will engage with China to agree on this period of time. During the meeting, under the agenda item on surveillance of implementation of DSB recommendations, several members presented their status reports on how they are implementing the panel reports in various disputes. +
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