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WTO Dispute Settlement Mechanism(3)

Chapter Ⅲ
Initiation of Panel Procedures


OUTLINE

Section One Role of Consultations: Art. 4
I The Importance of Consultations
II Issues Concerning the “adequacy” of Consultations
Section Two Establishment of Panels: Art. 6.2
I Introduction
II Indication of Consultations Process
III Identification of “the specific measures at issue”
IV Provision of “a brief summary of the legal basis of the complaint”
V Concluding Remarks
Section Three Terms of Reference of Panels: Art. 7
I Introduction
II Effect of Consultations on Terms of Reference of Panels
III The “matter referred to the DSB”
Section Four The Mandate of Compliance Panels: Art. 21.5
I Introduction
II Clarification of “measures taken to comply”
III Perspective of Review under Art.21.5
IV Examination of the New Measure in Its Totality and in Its Application
Section Five Third Party Rights : Art. 10
I Introduction
II Generic Third Party Rights: Interpretation of Art. 10.3
III Extended Third Party Rights: Exercise of Panels’ Discretion
IV Summary and Conclusions





Section One
Role of Consultations: Art. 4

The procedures for consultations under the WTO, significantly different from the procedures for good offices, conciliation or mediation as prescribed in Art. 5 of the DSU which remains voluntary options if the parties to the dispute so agree, remains a mandatory first step in the dispute settlement process as embodied with text of Art. 4 of the DSU. However, as to be shown below, there is something to be clarified so as to understand appropriately the role of consultations under the WTO dispute settlement mechanism.

I The Importance of Consultations
The practice of GATT contracting parties in regularly holding consultations is testimony to the important role of consultations in dispute settlement. Art. 4.1 of the DSU recognizes this practice and further provides that: “Members affirm their resolve to strengthen and improve the effectiveness of the consultation procedures employed by Members.” A number of reports made by panels or by the Appellate Body under the WTO have recognized the value of consultations within the dispute settlement process

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