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WTO Influence in EU FTAs: Dispute Settlement Dynamics

Explore how the WTO influences EU Free Trade Agreements (FTAs) through a dispute settlement lens. Understand the legal stages, dynamics, and limitations of the DSM in EU FTAs. Learn the importance of the DSU in resolving trade disputes.

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WTO Influence in EU FTAs: Dispute Settlement Dynamics

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  1. The WTO Influence in EU FTAs, through the dispute settlement lensCLEER, The Hague, November 2010 Edna Ramirez-Robles World Trade Organization, Legal Affairs Division © WTO - OMC 2010 edna.ramirezrobles@wto.org

  2. POLITICAL Pre WTO GATT (1947–1995) Dynamic EU FTAs (1963–2010) QUASI-ADJUDICATIVE Post WTO DSU (1995–2010) Static EU FTAs (2000-2010) Dispute Settlement Mechanisms (DSM) WTO vs. EU FTAs © WTO - OMC 2010 edna.ramirezrobles@wto.org

  3. Post-WTO (DSU) Consultations Final decisions Negative consensus Legal stages Compulsory Jurisdiction DSM Pre & Post WTO Pre-WTO (GATT) • No final decisions • Consensus • No legal stages © WTO - OMC 2010 edna.ramirezrobles@wto.org

  4. EU-FTAs (dynamic) • Ankara Agreement (1963) CU Turkey (1995) • European Economic Area (EFTA-EU) • Europe Agreements Acceding EU Members • EUROMED Neighbourhood (ENP) • Lomé Convention (1975) Cotonou Agreement (2000-2007) Economic Partnership Agreements (EPAs) © WTO - OMC 2010 edna.ramirezrobles@wto.org

  5. DSM EU-FTAs (dynamic) • No final decisions • Consensus • No legal stages • Unilateral decisions © WTO - OMC 2010 edna.ramirezrobles@wto.org

  6. EU-FTAs (static) IN NEGOTIATION • India • MERCOSUR • ASEAN • Gulf Cooperation Council (GCC) • Canada • Singapore • Ukraine IN FORCE • South Africa • Mexico • Chile CONCLUDED • Central America • Colombia • Peru • Korea © WTO - OMC 2010 edna.ramirezrobles@wto.org

  7. DSM EU-FTAs (static) • Consultations • Panel • Binding Decisions • Legal stages © WTO - OMC 2010 edna.ramirezrobles@wto.org

  8. WTO (DSU) Consultations Panel Legal stages Final Decisions Negative Consensus Compulsory Jurisdiction EU FTAs Consultations Panel Legal stages Binding Decisions DSU elements missing in DSM EU FTAs (static) © WTO - OMC 2010 edna.ramirezrobles@wto.org

  9. DS EU Experience (WTO & FTAs) © WTO - OMC 2010 edna.ramirezrobles@wto.org

  10. Reasons for the lack of use of DSM in EU FTAs (static) • Political • Economical • Legal • Other © WTO - OMC 2010 edna.ramirezrobles@wto.org

  11. Elements that Limit the Effectiveness of DSM in EU FTAs • Blockage of panel establishment • No binding awards • FTAs obligations excluded from DS • Few obligations agreed in FTAs • Unilateral Sanctions • Double forum • Several political stages prior to panel stage • No retaliation measures © WTO - OMC 2010 edna.ramirezrobles@wto.org

  12. CONCLUDING REMARKS • The multilateral trade system has influenced the EU trade regime with third countries from the GATT times • DSM in EU static FTAs may look strong but still have weak elements that lead to: • Disputes politically settle • DSM difficult to put in practice • Interpretation conflicts • Governments shall increase the dispute settlement mechanisms importance when negotiating FTAs • DSU will remain as the main forum for trade disputes © WTO - OMC 2010 edna.ramirezrobles@wto.org

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