MUNIK V

30/1/2014

Topic Brief ALTERNATIVE DISPUTE SETTLEMENT STEP 1 Bilateral Negotiations STEP2 - Specific Trade Bodies (Decision not Binding on member countries) e.g. Textile Monitoring Body (TMB) , Cotton Sub-committee, TRIPS Committee STEP 4 - Appellate Body STEP 5 - WTO Dispute Settlement Board (DSB) - Decision Binding on Member Countries) STEP 6 Appellate Body (DSB) DEVELOPING COUNTRIES: Government Role Non-active role in international trade disputes (WTO mission office) Lack of coordination with industry & trade stakeholders Expensive foreign consultants and lawyers (cost sharing) Lack of legal expertise relating to international trade and the WTO Local Trade Bodies Absence of Liaison between the business players and the government Dispute over Payment Mechanism for lawyers (ad hoc case-by-case approach) WTO Resolving trade dispute between two unequal partners (Undue Influence) Lengthy duration of the dispute settlement process (Frustration with process) Implementation of DSB decision DEVELOPED COUNTRIES: Government Role Plays active role in international trade disputes and specific international trade commissions Active coordination with industry & trade stakeholders Availability of local human resource for Dispute Mechanism (Lawyers, Consultants ) Active Research and Data Collection Local Trade Bodies Proactive Liaison between the business players and the government Lobbying by large established trade bodies Active participation in dispute proceedings Financial Backing WTO Economic Influence Lengthy duration of the dispute settlement process (favorable) Implementation of DSB decision (Incentives for Developing countries) GOVERNANCE MECHANISMS - GLOBAL Voting Mechanism One vote One country (Does not account for Country Specific factors and size) Voting mechanism Improvements Dispute resolutions Economic Influence Major players subject to differing conditions MNCs

MUNIK V

30/1/2014

Role of International trade bodies IMF Regional Trade Bodies NAFTA Intellectual Property Rights Ethical considerations Differing Tariffs Structure WTO Regulatory Authority Conditions outside Trade mechanism Balance of trade, currency depreciation, exchange controls Useful Links: Comb Cotton Case An excellent Guide to DSB http://www.wto.org/english/res_e/booksp_e/casestudies_e/case34_e.htm Dispute Resolution Mechanism http://www.wto.org/english/thewto_e/whatis_e/tif_e/disp3_e.htm (step wise) http://www.wto.org/english/tratop_e/dispu_e/disp_settlement_cbt_e/intro1_e.htm Country wise cases for Dispute Resolution for delegates: http://www.wto.org/english/tratop_e/dispu_e/dispu_status_e.htm Governance Mechanism http://www2.warwick.ac.uk/research/warwickcommission/worldtrade/report/introduction.pdf http://www.wto.org/english/res_e/booksp_e/public_forum09_e.pdf