The WTO Influence in EU FTAs,
through the dispute settlement lens
CLEER, The Hague, November 2010
Edna Ramirez-Robles
World Trade Organization, Legal Affairs Division
© WTO - OMC 2010
edna.ramirezrobles@wto.org
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Dispute Settlement Mechanisms
(DSM) WTO vs. EU FTAs
POLITICAL
QUASI-ADJUDICATIVE
Pre WTO
GATT (1947–1995)
Post WTO
DSU (1995–2010)
Dynamic EU FTAs
(1963–2010)
Static EU FTAs
(2000-2010)
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2
DSM Pre & Post WTO
Pre-WTO (GATT)




No final decisions
Consensus
No legal stages




Post-WTO (DSU)
Consultations
Final decisions
Negative consensus
Legal stages
Compulsory
Jurisdiction
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edna.ramirezrobles@wto.org
3
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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4
DSM EU-FTAs (dynamic)




No final decisions
Consensus
No legal stages
Unilateral decisions
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5
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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6
DSM EU-FTAs (static)




Consultations
Panel
Binding Decisions
Legal stages
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7
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
© WTO - OMC 2010
edna.ramirezrobles@wto.org
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DS EU Experience (WTO & FTAs)
EU TRADE PARTNER
South Africa
WTO Before/After FTAs
FTAs
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:
Disputes politically settle
DSM difficult to put in practice
Interpretation conflicts
a)
b)
c)

Governments shall increase the dispute settlement
mechanisms importance when negotiating FTAs

DSU will remain as the main forum for trade disputes
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