Body of settlement of the disputes

the Body of settlement of the disputes is a component of the World Trade organization (OMC). It is composed of all the Member States, usually represented by ambassadors or civils servant of equivalent row.

The disagreements subjected to OMC essentially relate to not held promises. The members of OMC are agreed to resort to the multilateral system of settlement of the disputes instead of taking unilateral measures if they estimate that other members enfreignent the commercial rules. In other words, they will apply the agreed procedures and will respect the given judgments.

A disagreement is born when a country adopts a commercial political measure or of another nature which is regarded by one or more other members of OMC as a violation of the agreements of OMC or a failure with the obligations. A third group of country can state to have an interest in the business and to profit from certain rights.

A procedure of settlement of the disputes existed within the framework of old the General Agreement on Tariffs and Trade (GATT), but there was no established calendar, it was easier to block the decisions and much businesses trailed in length without arriving at a solution. The Memorandum of agreement resulting from the Cycle of Uruguay set up a process more structured, whose stages are more clearly defined. It establishes a more rigorous discipline as for the time limit for the payment of a business as well as flexible expiries for the various stages of the procedure. It stresses that a fast payment is essential to the good performance of OMC. It states in a very detailed way the procedure rules to be followed and the calendars to be respected for this purpose. The complete procedure, until the decision of the first authority, should not in theory last more than one year, or more than 15 month if there is call. Times agreed are flexible and, in the event of urgency (i.e. when they are non durable products), the procedure is accelerated as much as possible.

The Memorandum of agreement resulting from the Cycle of Uruguay prevents also a country repudiated to block the adoption of the decision. According to the old procedure of GATT, the decisions could be adopted only by consensus, so that only one opposition was enough to block them. From now on, the decisions are adopted automatically safe if there is consensus to reject them. Thus, a country eager to block a decision must lead all the other members of OMC (including the opposing party in the disagreement) to share its sights.

This procedure points out much the legal system but one prefers to incite the interested countries to discuss their problems and to regulate themselves the disagreement. The first stage is thus that of consultations between the governments concerned and, even at the time of the later stages, it is always possible to call upon the consultations and the mediation.

How long is it necessary to settle a disagreement?

60 days → Consultations, Mediation, etc
45 days → Establishment of the special group and member nomination of the group
6 months → Presentation of the final report of the special group to the parts
3 weeks → Presentation of the final report of the special group to the members of OMC
60 days → Adoption of the report/ratio by the Body of settlement of the disputes (if there is not call)

Total = 1 year (without call)

60-90 days → Presentation of the report/ratio of call
30 days → Adoption of the report/ratio of call by the Body of settlement of the disputes

Total = 1 year and 3 months (with call)

Bibliography:

the settlement of the disputes with OMC of Eric Channel-Forgues - Edition Bruylant

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