DSU REVIEW: MAY 2004 DEADLINES SLIPPING OUT OF REACH

When the special (negotiating) session of the WTO Dispute Settlement Body (DSB) met on 1 March to continue the review of the Dispute Settlement Understanding (DSU), the meeting focused on organisational issues. Mirroring the last session held on 26 January this year (see BRIDGES Weekly, 28 January 2004), the meeting had originally been scheduled for two days from 24-25 February, but lasted just over an hour. Despite an invitation by former Chair Péter Balás to Members at the 26 January meeting to submit specific proposals to bridge positions and inject momentum into the negotiations, no such proposals were forthcoming at this meeting. Rather, the agenda focused on the election of a new Chair and organisation of the DSB special session's work. The new Chair, Ambassador David Spencer (Australia), has held off any discussions on substantive issues until he has met with delegates either on an individual basis or as a group to discuss 'any matter' relating to the work of the special session, including any thoughts on the best way to move the process forward. The Chair has made himself available for these discussions on 5 March.

Disagreement over suggestions aimed at injecting momentum

At the meeting, the Chair also suggested that Members negotiate among themselves as a way of bridging positions. Some developing country delegates were of the opinion that this suggestion would not work. In their opinion, that option has always been available to negotiators, yet it has not yielded any results. Furthermore, they argued, there was a need for an impartial arbiter in the negotiations -- hence the role of the Chair. Frustrated by the slow pace of the negotiations, some Members suggested that the scope of the talks be limited so as to allow for a more realistic outcome and an early harvest. This idea was rejected by some developing country groups, which did not want to compromise their agenda of negotiating a thoroughly revised DSU that resolves the constraints faced by developing countries in accessing the dispute settlement system.

Extension of May 2004 deadline imminent?

The current deadline for the completion of the negotiations is May 2004. Some delegates have expressed concern that this deadline is unlikely to be met, while others maintain that there is still a possibility, provided Members garner the political will to push the negotiations forward.

Originally, Paragraph 30 of the Doha Ministerial Declaration set the target date for the conclusion of the DSU negotiations for no later than May 2003, while the rest of the negotiations are to be concluded before 1 January 2005. The fact that this date has been extended four times so far has raised questions about the willingness of and commitment by Members to clarify and improve the DSU. Opinion on why the pace has slowed is divided. Some delegates point to lack of progress in agriculture talks and other key components of the Doha round, despite the fact that negotiations on the DSU are separate. Others point to a lack of political will and complex proposals tabled by Members.

Trade sources indicate that when talks on substantive issues resume, the negotiations are expected to build on areas of convergence in the Chair's text of 28 May 2003 -- a compilation of proposals on which there has been a relatively modest level of support, such as the enhancement of third-party rights and implementation and compliance issues discussed at the 26 January meeting (a copy of this text is available as an annex to the report TN/DS/9, online at http://docsonline.wto.org). New proposals will also be accepted and discussed. The next meeting of the special session of the DSB is scheduled for 25 March.

ICTSD reporting.