© wto - omc 2010 edna.ramirezrobles@wto.org 1 the wto influence in eu ftas, through the dispute...

© WTO - OMC 2010 edna.ramirezrobles@wto.org

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The WTO Influence in EU FTAs, through the dispute settlement lens

CLEER, The Hague, November 2010

Edna Ramirez-RoblesWorld Trade Organization, Legal Affairs Division

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Dispute Settlement Mechanisms (DSM) WTO vs. EU FTAs

POLITICAL

Pre WTO

GATT (1947–1995)

Dynamic EU FTAs

(1963–2010)

QUASI-ADJUDICATIVE

Post WTO

DSU (1995–2010)

Static EU FTAs

(2000-2010)

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DSM Pre & Post WTO

Post-WTO (DSU) Consultations Final decisions Negative consensus Legal stages Compulsory

Jurisdiction

Pre-WTO (GATT)

No final decisions Consensus No legal stages

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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)

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DSM EU-FTAs (dynamic)

No final decisions Consensus No legal stages Unilateral decisions

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EU-FTAs (static)IN FORCE

South Africa Mexico Chile

CONCLUDED Central America Colombia Peru Korea

IN NEGOTIATION India MERCOSUR ASEAN Gulf Cooperation

Council (GCC) Canada Singapore Ukraine

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DSM EU-FTAs (static)

Consultations Panel Binding Decisions Legal stages

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DSU elements missing in DSM EU FTAs (static)

WTO (DSU) Consultations Panel Legal stages Final Decisions Negative Consensus Compulsory Jurisdiction

EU FTAs Consultations Panel Legal stages Binding Decisions

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DS EU Experience (WTO & FTAs) EU TRADE PARTNER WTO Before/After FTAs FTAs

South Africa 0 / 0 0

Mexico 3 / 1 0

Chile 4 / 2 0

Central America 1 / 0 0

Colombia 0 / 0 0

Peru 2 / 0 0

Korea 7 / 0 0

TOTAL 16 / 3 0

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Reasons for the lack of use of DSM in EU FTAs (static)

Political Economical Legal Other

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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

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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:

a) Disputes politically settleb) DSM difficult to put in practicec) Interpretation conflicts

Governments shall increase the dispute settlement mechanisms importance when negotiating FTAs

DSU will remain as the main forum for trade disputes