Home

WTO

Macro

Micro

Dispute Settlement

1. Introduction
   • Understanding on Rules and Procedures Governing the Settlement of Disputes: Annex 2 of the WTO Agreement.
   • Functions & objectives:
     1. Security and predictability;
     2. Enforcement of Members' rights and obligations;
     3. Clarification of rights and obligations “in accordance with customary rules of interpretation of public international law” (Article 3.2 of the DSU):
        
        Vienna Convention on the Law of Treaties
        Art. 31
        1. A treaty shall be interpreted in good faith in accordance with the ordinary meaning to be given to the terms of the treaty in their context and in the light of its object and purpose.
        2. The context for the purpose of the interpretation of a treaty shall comprise, in addition to the text, including its preamble and annexes:
        • any agreement relating to the treaty which was made between all the parties in connection with the conclusion of the treaty;
        • any instrument which was made by one or more parties in connection with the conclusion of the treaty and accepted by the other parties as an instrument related to the treaty.
        3. There shall be taken into account, together with the context:
        • any subsequent agreement between the parties regarding the interpretation of the treaty or the application of its provisions;
        • any subsequent practice in the application of the treaty which establishes the agreement of the parties regarding its interpretation;
        • any relevant rules of international law applicable in the relations between the parties.
        4. A special meaning shall be given to a term if it is established that the parties so intended.
        Art. 32: Supplementary means of interpretation
        Art. 33: Interpretation of treaties authenticated in two or more languages
     4. “Mutually Agreed Solutions” as “Preferred Solution”;
     5. Prompt settlement;
     6. Prohibition against unilateral determinations;
     7. Exclusive jurisdiction;
     8. Compulsory nature.
   • Participants
     • Parties and third parties;
     • No non-governmental actors.
   • Scope
     • The “covered agreements”;
     • A single set of rules and procedures.
   • Developing country Members