2012年-WTO世界贸易组织_Use_of_the_WTO_trade_dispute_settlement_mechanism_by_the_Latin_American_countries_mdash_dispellingmyths_and_breaking_down_barriers_26页_251kb

Summary of "Use of the WTO Trade Dispute Settlement Mechanism by the Latin American Countries - Dispeliling Myths and Breaking Down Barriers"

Core Content

This working paper by Raul A. Torres examines the participation of Latin American countries in the WTO Dispute Settlement Mechanism (DSM), highlighting both their active engagement and the challenges they face in utilizing the system effectively. The paper aims to dispel myths about developing country participation in the DSM and to analyze the innovative approaches Latin American countries have taken to overcome obstacles.

Main Views

• The DSM as a Leveling Tool: The DSM is considered a key mechanism that allows developing countries to challenge trade barriers through legal arguments rather than economic power, thereby contributing to a more equitable international trade system.

• Latin American Participation: Latin American countries have been highly active in the DSM, both as complainants and respondents, and have also participated extensively as third parties in disputes.

• Statistical Overview: The paper provides detailed statistical analysis of the DSM usage, comparing the number of consultations, panels, and appeals initiated by different countries, as well as their participation relative to their share of global trade and imports.

• Participation Rates: The analysis shows that Latin American countries, on average, have higher participation rates in the DSM than would be expected based on their share of global trade or imports. This suggests that they have managed to overcome traditional barriers to participation.

• Challenges Identified: Several challenges to developing country participation in the DSM are discussed, including the lack of legal expertise, high litigation costs, and the difficulty in identifying and communicating trade barriers.

Key Information

Statistical Analysis of DSM Usage

• Total Consultations: As of the paper's publication (February 2012), 425 requests for consultations were accepted by the WTO, with seven submitted by multiple complainants, bringing the total to 453.
• Panels and Appeals: The DSB established 185 panels for 231 disputes, with 91 appeals.
• Breakdown by Development Status:
  • Complainants: 258 requests by developed countries and 194 by developing countries.
  • Respondents: 247 disputes against developed countries and 178 against developing countries.
• Latin American Participation:
  • Complainants: Brazil (25), Mexico (21), Argentina (15), Chile (10), etc.
  • Respondents: Argentina (17), Brazil (14), Mexico (14), etc.
  • Third Parties: All Latin American countries have participated as third parties, with some, like Bolivia, Cuba, and Paraguay, not acting as complainants or respondents.

Weighted Participation Index

• The weighted DSM utilization index, based on a country's share of global exports, shows that some Latin American countries (e.g., Honduras and Guatemala) are over-represented in the number of disputes relative to their trade volume.
• Venezuela, despite early involvement in the DSM, has a low participation rate compared to its export level.
• The index also shows that all Latin American countries, except for some, have received more consultation requests than expected based on their import share.

Hypothetical Exercises

• A hypothetical exercise is conducted for countries that have not requested consultations (Bolivia, Cuba, Paraguay, Dominican Republic), assigning them a hypothetical consultation to test if their participation rate would be expected based on their trade and import levels.
• The results indicate that these countries have not initiated disputes in line with their trade and import shares, suggesting a lack of engagement or capacity.

Obstacles to Developing Country Participation

• Lack of Expertise: The complexity of the DSM and the high cost of litigation make it difficult for developing countries to engage effectively.
• High Costs: Litigation costs for a medium-complexity dispute are estimated at around US$500,000, which is a significant burden for countries with limited budgets.
• Limited Access to Legal Support: The WTO Secretariat provides legal assistance under Article 27.2, but the requirement for impartiality limits its effectiveness.
• Advisory Centre on WTO Law (ACWL): The ACWL offers cost-effective legal support, but its services are limited by a fixed cost ceiling and may not be accessible in all cases.
• Third Party Participation: Increased third party involvement is seen as a way for developing countries to gain experience and expertise in the DSM.

Conclusion

The paper concludes that Latin American countries have been relatively successful in overcoming the traditional challenges to developing country participation in the DSM. Despite the high costs and lack of legal capacity, they have managed to engage actively in the system, often through innovative and creative solutions. However, the issue of resource constraints and access to legal expertise remains a significant challenge, especially for smaller and less economically developed countries. The paper also highlights the importance of third party participation in building legal capacity and suggests that further reforms, such as the establishment of a Dispute Settlement Fund or improved third party rights, may help to enhance developing country access to the DSM.