HEAVY WORKLOAD IN DSB NEGOTIATING SESSION

Meeting from 28 to 30 January, the WTO Dispute Settlement Body (DSB) special session discussed specific draft text for the clarification and improvement of the Dispute Settlement Understanding (DSU). Members are currently reviewing the DSU, with a 31 May 2003 deadline (Doha Declaration paragraph 30). Discussions have previously centred around a "check-list of issues," with Members submitting general and conceptual proposals (see BRIDGES Weekly, 20 December 2002). The negotiations have now moved into a fourth phase, with the discussion of specific draft text. While the negotiations are in their advanced stages, progress has been slow, and some delegations have expressed frustration with regard to the procedure adopted in the negotiations, claiming it is tedious, confusing and that the "sense of the actual proposals is lost".

On 27 January, Ambassador Péter Balás (Hungary), Chair of the special session, circulated a Compilation of Draft Text Proposals (Job (03)/10), on the basis of which the latest discussions were held. They focussed on delegations' propositions on Articles 3 though 9 of the DSU, pertaining to general provisions, consultations, good offices, conciliation and mediation, establishment and Terms of Reference of panels, composition of panels, and procedures for multiple complainants. At least 23 other Articles remain outstanding. According to sources, the deadlines may still be met with the current pace of negotiations. Commentators noted that much of the textual language in the DSU was likely to remain as it was, due to the vested interest of some key players.

There was some focused discussion on a proposal from the least- developed country group (LDC) with respect to Article 4.10, which spells out the need to take developing country interests into consideration during consultations. LDCs have proposed that the article be amended to the effect that special attention also be given to LDCs during consultations and that possibilities of "holding consultations in the capitals of LDCs shall always be explored and a joint note to this effect." Members reportedly met this proposal with "sympathy." Canada, however, suggested that satellite transmission could be used for this purpose. Haiti, who presented the proposal on behalf of the LDC group, responded to questions asked on the practicality and workability of the proposed amendment. The Haitian delegate explained that the spirit behind the proposed amendment was that -- should an LDC be involved in consultations -- a lot of input would be needed from capital-based officials. Costs of bringing in such officials to Geneva would be unreasonably burdensome to LDCs.

There was also some discussion on the issue of third party rights, which went hand in hand with a proposal from Thailand on Article 5 (Good Offices, Conciliation and Mediation). The proposal was for making the use of the "good offices of the Director General" obligatory. On third party mediation, some members are of the view that the increased use of compulsory third party mediation is simply cumbersome and does not add value to the already established system of compulsory panel procedures. To date, parties have hardly used this provision, and there is not much experience or practice around it. In any event, the time that will be taken for the mediator to understand the issues, enough to bring the parties to a common understanding may as well be taken up during the panel process. Members agreed that no third party should be allowed during the consultations phase, even though the whole issue of enhancing third party rights was favourably received.

On the issue of the composition of panels, some Members such as Thailand proposed a "lighter position" of having a roster of "permanent panel chairs" instead of permanent panellist. The African Group has stated that not much in the current process justifies moving to a system of permanent panellists, whereas the EU has proposed it. The latest proposal on permanent panel chairs seems to strike a compromise. The next round of meetings will be held 17 and 18 February and Members are expected to proceed with the negotiations based on the Chair’s Compilation of Draft Text Proposals.

ICSTD Reporting.