The dispute settlement mechanism of the World Trade Organization
(WTO) is a succession of the dispute settlement rules that has been effective
for nearly 50 years in the history of GATT 1947. The basic objective of this
dispute resolution mechanism is to achieve a positive solution to the dispute.
Vietnam is member of WTO therefore it could refer to dispute settlement mechanism of WTO in
dispute against other country member.
When a dispute arises at the WTO, the parties will first conduct
consultations to come up with a mutually agreed solution to resolve the case
(Consultation – the stage of mediation), as usual in each case there is
the participation of third parties (who are members of significant interest and
desire to participate in the dispute resolution process), if they feel a significant
interest in the case and should be considered by the panel. In the case of an
unsuccessful inquiry, a panel of 3 to 5 members will be established and tasked
with examining a particular issue in dispute on the basis of WTO rules cited by
the claimant’s country.
After the establishment of a panel to review the complaint, the
first thing that the panel needs to do is to set a timetable for its
proceedings (Article 12.3 of the DSU). The panel procedure usually covers the
contents set forth in Article 12 and Annex 3 of the DSU, including certain
flexibility to ensure the quality of the report without delaying the
proceedings. Setting a timetable helps the parties understand the contents and
deadlines for each dispute, helping them be more proactive in presenting
evidence, bases and arguments in their submitted documents.
After the hearings take place, the panel will enter the internal
discussion phase (deliberation), to review the assessment of relevant legal,
practical issues in accordance with the provisions of the WTO, the deliberation
must be kept secret. These reports were drafted without the presence of the
parties to the dispute, but only according to the content of the information
provided and the comments made earlier. Individual opinions of jurors presented
in a panel report shall not include the names of speakers of such opinions.
After the final report will be sent to the parties to the dispute
within 2 weeks after the panel has concluded the mid-term review. Normally,
every report of the panel has very large content, to facilitate the study of
review by the appellate body and to quote case law, the report must show the
table of contents and paragraphs which are separate numbered in the order of
the report. If there is no appeal, the dispute resolution process will
immediately go to the implementation stage after the DSB adopts a panel report.
If there is an appeal, the case will be reviewed at the Appellate level.
It is important for Vietnam as member of WTO to be aware of the
dispute settlement mechanism and fully prepared when having dispute against
other country members in international trade dispute matters.
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