trade dispute resolution: what are the mechanisms?
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TRADE DISPUTE RESOLUTION: WHAT ARE THE MECHANISMS?. Mary E. Burfisher, ERS/USDA Terry Norman, Ag. & Agrifood Canada Renee Schwartz, FAS/USDA. WHY ARE TRADE DISPUTE MECHAMISMS IMPORTANT?. Create orderly, rules-based system that facilitates trade Protect the interests of all parties - PowerPoint PPT PresentationTRANSCRIPT
TRADE DISPUTE RESOLUTION: WHAT ARE THE MECHANISMS?
Mary E. Burfisher, ERS/USDA
Terry Norman, Ag. & Agrifood Canada
Renee Schwartz, FAS/USDA
WHY ARE TRADE DISPUTE MECHAMISMS IMPORTANT?
Create orderly, rules-based system that facilitates trade
Protect the interests of all parties Prevent disputes from occurring or
escalating
DISPUTE RESOLUTION MECHANISMS FORMAL:
Legalistic, strictly specified rules of procedure and timetables; consultations, panel, win/lose outcomes
INFORMAL:Ad hoc processes defined by participants, consensus outcomes
FORMAL MECHANISMS
NAFTA Chapter 19 on AD, CVD NAFTA Chapter 20 on interpretation of
agreement National AD or CVD actions WTO dispute settlement process
Chapter 19 and 20 process
Consultations (ch. 19) or meeting of Commission (ch. 20) provide a venue for mediating a resolution
Arbitral panels are formed when consultation fails, legalistic process with a win/lose outcome
Appeal process: Decisions can be appealed (ch.19) or reconsidered (ch. 20)
Ch. 19 Actions
Panel reviews
Mexican AD on US HFCSUS refined sugar exports to CanadaUS AD on Canadian swine exports Mexican fresh cut flower exports to US
Disputes Settled under Ch. 20
Two disputes:
Canadian TRQ’s on poultry, dairy, barley and margarineU.S. safeguards on broom corn brooms from Mexico
NATIONAL AD OR CVD ACTIONS NAFTA members have independent
processes, but must abide by Chapter 19 disciplines
AD are imposed when imports sold at less than fair market value and domestic injury occurs
CVD are imposed to offset foreign subsidies if domestic injury occurs
WTO Panel Process
NAFTA members can pursue matters covered by both NAFTA and WTO, but can only use one venue at a time
Consultations provide opportunity to mediate a resolution
Panel is formed if consultations fail Outome is win/lose, and may be
appealed
WTO panels
Canadian fluid milk TRQ and certain milk pricing practices
Mexican HFCS duties
INFORMAL VENUES
Government to government negotiations Industry to industry negotiations Technical consultation/assistance
Governmental
Standing committees Committee on Agricultural Trade Nafta SPS Committee
U.S.-Canada ROU Understanding
U.S.-Mexico tomato agreement
PRIVATE INDUSTRY NEGOTIATIONS
Advisory Committee on Private Commercial Disputes regarding Agricultural Goods : Fruit and Vegetable Dispute Resolution Corp.
Northwest Cattle Project US-Mexican grape industry agreement
on labeling
Technical Consultation, Assistance
U.S.-Mexico Emerging Markets Project
NAFTA SPS Committee
CONCLUSIONS
Evolving mechanisms for trade dispute resolution help to prevent disputes from occurring or escalating
Voluntarism is foundation of both formal and informal mechanisms
Trade dispute resolution mechanisms cannot deal effectively with differences that were unresolved when negotiating the pact