DSU UPDATE: DSU REVIEW DEADLINE EXTENDED; APPELLATE BODY DEVELOPMENTS

At the special (negotiating) session of the WTO Dispute Settlement Body (DSB) held on 28 May, Members supported a statement by Chair to extend the deadline for negotiations around the Dispute Settlement Understanding without setting a definite deadline. Members at the DSB session also considered a proposal from a diverse group of countries, and discussed proposed amendments to the 'Working Procedures for Appellate Review'.

Deadline extended

Delegates expressed support for a statement by Chair David Spencer (Australia) to extend the 31 May 2004 deadline for the completion of the negotiations on the Dispute Settlement Understanding (DSU Review). The statement, initiated on the Chair's own accord in consultation with Members, noted the progress made in the talks so far and proposed that the negotiations -- which are running parallel to the Doha round talks -- continue beyond May, without setting a definite deadline. Trade delegates supported this decision, which many had anticipated due to the slow pace of negotiations (see BRIDGES Weekly, 3 March 2004).

Delegates expect that formal DSB negotiation sessions will continue after the WTO's annual August break. Some trade sources also indicated that the DSU negotiations would be likely to gain momentum if there was a breakthrough in other negotiation areas, such as agriculture. Members missed a similar deadline a year ago (see BRIDGES Weekly, 4 June 2003).

Package deal released

Members present at the DSB special session also considered a proposal on the DSU review by Argentina, Brazil, Canada, India, New Zealand and Norway (see BRIDGES Weekly, 5 May 2004). The proposal, which was expected to cover seven negotiating issues, only covers three: sequencing, remand, and procedures for removal of authorisation for suspension of concessions. Delegates noted that they would examine these proposals further and send them to their capitals for further deliberation. The proponents feel this proposal could be the starting point for negotiations after the August break.

Appellate Body developments

Members briefly discussed proposed amendments to the 'Working Procedures for Appellate Review,' which had been initiated by the Appellate Body itself. On 8 April, the Chair of the Appellate Body, Georges Michel Abi-Saab, circulated a proposal on behalf of all seven Appellate Body members for comments (WT/AB/WP/8, available at http://docsonline.wto.org). The proposal seeks to clarify the content of notices of appeal and also introduces procedures which would enable parties to amend notices of appeal where necessary. The proposal further clarifies the meaning of the word 'clerical' in a provision that allows Members to correct 'clerical errors' in their written submissions. It also seeks to adjust the timeframes for the oral hearing at the appeals level and the current 90 day limit within which the Appellate Body has to circulate its report on a case. Some Members expressed disagreement with the proposed changes on notice of appeal. The Chair has called informal consultations to discuss the proposals on 7 June. The deadline for Members to submit comments to the Appellate Body has been set for 11 June 2004.

In related developments, the Appellate Body released its first annual report highlighting its activities in 2003 on 7 May. The report, which also covers the work of the Appellate Body since its establishment in 1995, contains information on appeals filed so far, tracks changes in the composition of the Appellate Body and offers statistics on participation rates of WTO Members in the dispute settlement system. The report notes that the US has been the most frequent participant in disputes to date, followed by the EU. Provisions under the General Agreement on Tariffs and Trade and the WTO Antidumping and Subsidies Agreements have been the most popular subject for disputes to date.

The first annual Appellate Body report is available at http://www.wto.org/english/tratop_e/dispu_e/wt_ab1_e.doc

ICTSD reporting; "Chair to propose indefinite continuation of dispute reform", WTO Reporter, 25 May, 2004; "Appellate Body issues first annual report", WTO Press Release 7 May 2004; "Amendments proposed to the Working Procedures for Appellate Review", WTO Press Release 15 April 2004.