XXII Consultation
  1. Requires opportunities for consultation regarding "any matter affecting the operation of this Agreement."
  2. Allows for general consultations when bilateral consultations have failed.

 

Understanding on Rules and Procedures Governing the Settlement of Disputes: sets out the procedures to be followed for the resolution of disputes. The aim of this mechanism is to "secure a positive solution to a dispute".
  1 Applies the rules and procedures of this Understanding to disputes under the WTO Agreement and related Agreements, including the GATS and TRIPS Agreements. When more than one agreement with conflicting procedures are under review: (i) disputants have 20 days to agree on which rules to apply or (ii) failing to agree, the Chair of the DSB has 10 days following a request by either Member to decide which rules to apply.
  2 Assigns administration to the Dispute Settlement Body.
  3 Commits Members to the DSU process. A solution mutually acceptable to the parties to a dispute and consistent with the covered agreements is clearly to be preferred. In the absence of a mutually agreed solution: (i) the first objective of the dispute settlement mechanism is usually to secure compliance with trade agreements. (ii)  Temporary compensation should be resorted to only if the immediate withdrawal of a concompliant measure is impracticable. (iii) Suspending the application of concessions or other obligations under the covered agreements on a discriminatory basis is a last resort and is subject to authorization by the DSB.
  4 Upon written request for consultation (with notification to the DSB), Members must reply within 10 days and enter into consultations within 30 days. The complainant panel may request a panel within 60 days. In urgent situations, a panel may be requested within 20 days. Additional Member may request inclusion within 10 days after the date of circulation of the request for consultations.
  5 Permits the parties to undertake mediation procedures within the 60-day period following a request for consultations.
  6 Requires the DSB to establish a panel at the latest at the DSB meeting following that at which a written request first appears as an item on the DSB's agenda.
  7 Establishes the following format for a panel's terms of reference: "To examine, in the light of the relevant provisions in (name of the covered agreement(s) cited by the parties to the dispute), the matter referred to the DSB by (name of party) in document ... and to make such findings as will assist the DSB in making the recommendations or in giving the rulings provided for in that/those agreement(s)."
  8 Stipulates that the Secretariat should propose nominations of 3 independent panelists (or 5 by mutual agreement) to the disputants to be agreed on within 20 days of the establishment of a panel. Failing agreement, the Director-General shall determine the panelists within 10 days of a request. Except by agreement, no panelist may serve from Members with a substantial interest in the complaint.
  9 Recommends a single panel to examine multiple complaints regarding the same matter.
  10 Requires full consideration of the interests of third-party Members.
  11 Requires a panel to make an objective assessment of the matter before it, including the facts of the case and the relevant agreements, and submit findings that will assist the DSB in making recommendations or rulings. Panels should consult regularly with the parties to the dispute with the aim of securing a mutually satisfactory solution.
  12 Requires the panel to fix the timetable of the panel process, "whenever possible within one week after the  composition and terms of reference of the panel have been agreed upon." The panel shall, as a general rule, issue its final report within six months of the same date (3 months in cases of urgency). A three-month delay may be allowed upon written notification to the DSB. Time limits are more relaxed for developing countries. The complainant may request a suspension of panel deliberations by up to 12 months.
  13 "Each panel shall have the right to seek information and technical advice from any individual or body which it deems appropriate."
  14 Deliberations are confidential.
  15 Requires interim reviews of the panel report by the Members involved.
  16 Stipulates that DSB Members be granted 20 days to consider a panel report before its adoption decision. Written objections must be submitted at least 10 days prior to the DSB meeting at which the panel report will be considered. Requires adoption of the report at a DSB meeting within 60 days after circulation barring appeal or a negative consensus.
  17 Requires the DSB to establish a standing Appellate Body: (i) 7 experts who serve 4-year rotating terms, may be reappointed once and must be unaffiliated with any government. (ii) 3 appointees serve on any case, and they shall not participate in disputes which create a conflict of interest. (iii) Appellate Reports are due within 60 days (and in no case over 90 days) from the date of appeal. (iv) An appeal shall be limited to issues of law. (v) The DSB must adopt the Appellate Body report within 30 days after it is circulated, barring a negative consensus.
  18 Prohibits partisan communications with panels or the Appellate Body and requires confidentiality of written suubmissions.
  19 Authorizes panels to suggest ways in the Member concerned could implement its recommendations.
  20 Sets a global time frame of 9 months (12 months in the case of appeal) from date of panel establishment to final DSB consideration of a report for adoption. The time frame is extended in the event of interim suspensions.
  21 Requires Members to inform the DSB of its intentions at a DSB meeting within 30 days of adoption of a report. If necessary, the Member must be afforded a reasonable period of time to comply ((i) submitted by the Member and approved by the DSB, (ii) negotiated within 45 days of report adoption, or (iii) determined by within 90 days by an arbitrator (usually not in excess of 15 months from date of adoption). Disagreement about compliance must be decided by a panel (preferably the original panel) within 90 days of referral. The DSB must monitor implementation within 6 months "following the date of establishment of the reasonable period of time" and keep the matter on its agenda until resolved. Members under surveillance must provide updates 10 days prior to each DSB meeting.
  22 "Compensation and the suspension of concessions or other obligations are temporary measures available in the event that the recommendations and rulings are not implemented within a reasonable period of time." Allows for compensation consultation and for complainant to request DSB authorization for retaliation within 20 days of the end of the "reasonable period of time" under Article 21. The priority for retaliation should be (i) within the same sector, (ii) under the same agreement, (iii) concessions under another WTO agreement. The level of retaliation should "be equivalent to the level of nullification or impairment." The DSB must act on a retaliation request within 30 days of the end of the reasonable period of time. If protested, arbitration must be completed within 60 days of the same date.
  23 Requires Members to adhere to the DSU and prohibits Members from unilateral courses of action in violation of the DSU.
  24 Requests special consideration for the circumstances of least-developed country Members
  25 Endorses expeditious arbitration as an alternative means of dispute settlement.
  26 In cases of complaints about nullification or impairment without noncompliance, remedies cannot include withdrawal of the measure, only a mutually satisfactory adjustment which could include compensation.
  27 Requires the Secretariat to assist panels and, where necessary, make available legal experts.