Frequently Asked Questions

(i) What sort of disputes does WTO deal with?

Disputes between Member governments — more than 140 economies —over trade policies and trade-related measures covered by a WTO Agreement.

(ii) Can you give me some examples?

Here is a selection from cases that have been decided since 1995 Well over 200 disputes have been notified, covering goods trade, intellectual property, trade-related investment measures, and services trade:

• A complaint against Australian export subsidies to a company making leather car seats (Australia had to withdraw the subsidies and recover the funds paid)
• A complaint against India for failing to give the required level of protection to pharmaceutical patents (India had to change its laws)
• A complaint against the EC administration of import restrictions on poultry (the EC had to change its procedures)
• A complaint against Guatemala for not conducting adequate investigations before applying anti-dumping duties to imported cement (Guatemala had to revise its anti-dumping procedures)
• A complaint against Japan for unnecessarily restrictive quarantine procedures applied to varieties of imported fruit (Japan had to change its testing and fumigation procedures)
• A complaint against Korean safeguard measures restricting imports of dairy products (Korea had to bring its safeguard procedures into line with the WTO and GATT agreements)
• A complaint that US regulations intended to preserve rare sea-turtles were really trade restrictions on the import of shrimps (the US had to change its laws to reduce the trade impact and to make the law apply more fairly among importers)

(iii) Are all the WTO rules covered by the dispute system?

Yes. The WTO dispute settlement system covers every Agreement including the "plurilateral" agreements on government procurement and civil aircraft, and the DSU itself.

(iv) Can businesses or citizens use the WTO dispute system?

Not directly. Only Member governments can be "plaintiffs" or "defendants" in a WTO case. No citizen has access to the dispute settlement system and no decisions within the system directly implicate citizens" rights. But business or citizens" interests are frequently behind the decision of a government to notify a dispute, of course.

(v) How long does it really take to win a case and get a remedy through WTO?

After two months of initial consultations, recent cases have taken an average of 13 to 16 months from the establishment of a Panel by the DSB to a decision by the DSB on the recommendation of the Panel - including a review by the Appellate Body. The "reasonable period of time" for implementation has been set at the maximum of 15 months in several cases. So the total, in some recent cases, from first notification to the end of the implementation period has been more than 30 months. Taking into account the preparation time for a case, you should probably plan on up to 3 years for any moderately complex case from the time officials first begin to put the case together to the time that a successful complaint results in changes in regulations — particularly where one of the parties to the dispute is a developing country.

(vi) Is it possible to get a temporary injunction to stop some action?

No. The WTO dispute settlement system does not provide for injunctive directions to governments or for interim judgments.

(vii) Does the WTO hand out fines or other punishments?

No. The dispute settlement system is about resolving disputes between Member governments; not about "punishment". In most cases the only decision taken is that a Member should change its regulations or practices. Even when there is some compensation or retaliation authorized by the Dispute Settlement Body, it is equivalent to the harm caused and contains no "punitive" measures intended to influence future behavior, for example.

(viii) What does it cost to bring a case?

That depends a lot on the case. As a guide, it probably costs a plaintiff government and businesses in the plaintiff country several millions of dollars over three years (or so), if all costs are taken into account.

A Member government will probably need to dedicate one or two professional staff full time to the development and prosecution of a WTO case with the associated administrative and support costs. Senior officials and Ministers will have to be available for supervision and to make key decisions. Agencies and Ministries in the Capital whose portfolios and responsibilities may be affected by the decisions in a case will need to be consulted and there will be information costs associated with data collection — including from business, statistical sources and from foreign sources. Some Members choose to use external legal firms to assist with the preparation or review of a case, but this is not essential.

The participants in a case will need to ensure representation in Geneva (and possibly elsewhere) during the preliminary phases including the formal consultation phase. They will need to have representatives at the DSB meetings before and after the establishment of a Panel and during the decision and implementation phases of the case. They may need to have representatives appear before the Panel on two occasions and before the Appellate Body, if an appeal is made.

Businesses in the Member states will also need to consult with government agencies and may participate in the evaluation of the case or give advice to their government on the progress of implementation. Businesses will probably be called-on by a government to help with information on the facts of a case.

(ix) Are there judgments for costs against the parties?

No. Parties to a WTO dispute bear their own costs. There are no judgments as to costs. The costs of the Panelists and the Appellate Body are met from the WTO budget.

(x) Can several defendants be joined in a case?

No. The dispute settlement system is structured to handle only those disputes where there is a single respondent. There may be more than one complainant in a case and several parties may be associated with a case as interested "third parties". These "third party" members have rights to provide and receive information at the Panel stage and rights to make submissions to the Appellate Body if the complainant or respondent appeal the Panel recommendations. But no assessment is made of their rights or obligations in the matter, so they are not implicated by the recommendations except to the extent that the restoration of a respondent"s compliance with the Agreements may consequently benefit their interests: for example, if the respondent restores certain rights subject to MFN application. Multiple cases referring to the same matter may be referred by the DSB to a single Panel for recommendation but these are technically separate cases.

(xi) Do you need a lawyer to represent you?

No. Member governments represent themselves in the dispute settlement system as elsewhere in WTO. The general practice in WTO is that Members may be represented at meetings, including at meetings of the disputes Panels, by whomever they designate: so Members may include government lawyers or external advisors on their delegations.

(xii) How do I research earlier cases?

The WTO website provides full public access to reports of WTO and GATT Panels and of the WTO Appellate Body as soon as they are circulated to the Membership.

(xiii) Is there just one court at WTO or are there several?

There are no "courts" in the WTO although some of the institutions in the dispute settlement system are required to act in a "court like" manner. The Member governments in Council — usually represented by their ambassadors to WTO — form the supreme decision-making body. When it deals with disputes, the General Council is designated the Dispute Settlement Body (DSB). The DSB may appoint a Panel for each dispute to advise it on the dispute and to recommend a means of resolving the dispute. The standing Appellate Body also reports to the DSB. There is no appeal from the DSB.

(xiv) How far can you keep on appealing a decision?

Panel reports may be appealed only once and only by parties to the case. Members who are designated as interested "third parties" by the DSB may also join in appeals.

(xv) Can we get a Panel to give us an advisory opinion?

No. Panels are established by the DSB for a specific case and have no other function than to advise on the resolution of a dispute in that case. Neither the Panel nor the Appellate Body is competent to interpret the Agreements in the abstract but only to make recommendations related to a specific case before it. The Understanding on Dispute Settlement refers Members to the decision-making processes of the covered Agreements — normally the Council established to manage the Agreement - for advice on the Agreements themselves.

(xvi) Who is responsible in my government for representing me?

This varies from government to government. Usually the agency responsible for international trade agreements (the Ministry of Foreign Affairs or the Trade Ministry) is charged with responsibility for the WTO dispute settlement system.

(xvii) Does WTO provide legal assistance for developing countries?

Yes. Within the limits of its resources and its mandate to remain impartial, the Secretariat is directed by the Dispute Settlement Understanding to assist developing countries with e.g. the preparation of a case. Recently, the limits on the Secretariat"s role have led some donors to establish a trust fund that will be used to provide more detailed and "partial" assistance to developing countries (see the "Advisor Centre on WTO Law", below).