Part 3a - WTO Law and Dispute Settlement

Question 1

WTO

Answer 1

The world trade organization (WTO) deals with the global rules of trade between nations.

Question 2

What is WTO’s main function: (4)

Answer 2

Its main function is to ensure that trade flows as smoothly, predictably, and freely as possible:
- Implementation of main agreements GATT, GATS
- Forum for multilateral trade negotiations (only binding for contracting parties)
- Dispute resolution tribunal
- Review oversee trade policies

Question 3

Non-discrimination principle

Answer 3

• Seeks to ensure that foreign goods and services compete with domestic goods and services on a level playing field.
  ○ 2 obligations
  1. Most-favored-nation (MFN) treatment
  2. National treatment

Question 4

Exceptions to MFN (4)

Answer 4

• Dumping
• Custom Unions
• Free trade area
• Protection of public health, national security

Question 5

Dumping

Answer 5

It is not prohibited but actions to counter it could be taken by states

Question 6

Custom Unions

Answer 6

A trade bloc which is composed of a free trade area with a common external tariff

Question 7

Free trade area

Answer 7

Grouping of countries within which tariffs and non-tariff trade barriers between the members are generally abolished but with no common trade policy toward non-members

Question 8

Dispute resolution under the WTO (4)

Answer 8

• Negotiation
  
  • Mediation - always involves a 3rd party
    ○ It is a cheaper and more efficient way of resolving the issue
  • Conciliation
    ○ Making each other happy.
  • Inquiry
    ○ Research occurs
  • Arbitration (ICSID) - private dispute resolution.
    Decisions are binding on the parties and generally not subject to appeals.