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The WTO Influence in EU FTAs, through the dispute settlement lens CLEER, The Hague, November 2010

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. POLITICAL Pre WTO GATT (1947–1995) Dynamic EU FTAs (1963–2010). QUASI-ADJUDICATIVE Post WTO DSU (1995–2010)

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The WTO Influence in EU FTAs, through the dispute settlement lens CLEER, The Hague, November 2010

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  1. The WTO Influence in EU FTAs, through the dispute settlement lensCLEER, The Hague, November 2010 Edna Ramirez-Robles World Trade Organization, Legal Affairs Division © WTO - OMC 2010 edna.ramirezrobles@wto.org

  2. POLITICAL Pre WTO GATT (1947–1995) Dynamic EU FTAs (1963–2010) QUASI-ADJUDICATIVE Post WTO DSU (1995–2010) Static EU FTAs (2000-2010) Dispute Settlement Mechanisms (DSM) WTO vs. EU FTAs © WTO - OMC 2010 edna.ramirezrobles@wto.org

  3. Post-WTO (DSU) Consultations Final decisions Negative consensus Legal stages Compulsory Jurisdiction DSM Pre & Post WTO Pre-WTO (GATT) • No final decisions • Consensus • No legal stages © WTO - OMC 2010 edna.ramirezrobles@wto.org

  4. 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) © WTO - OMC 2010 edna.ramirezrobles@wto.org

  5. DSM EU-FTAs (dynamic) • No final decisions • Consensus • No legal stages • Unilateral decisions © WTO - OMC 2010 edna.ramirezrobles@wto.org

  6. EU-FTAs (static) IN NEGOTIATION • India • MERCOSUR • ASEAN • Gulf Cooperation Council (GCC) • Canada • Singapore • Ukraine IN FORCE • South Africa • Mexico • Chile CONCLUDED • Central America • Colombia • Peru • Korea © WTO - OMC 2010 edna.ramirezrobles@wto.org

  7. DSM EU-FTAs (static) • Consultations • Panel • Binding Decisions • Legal stages © WTO - OMC 2010 edna.ramirezrobles@wto.org

  8. WTO (DSU) Consultations Panel Legal stages Final Decisions Negative Consensus Compulsory Jurisdiction EU FTAs Consultations Panel Legal stages Binding Decisions DSU elements missing in DSM EU FTAs (static) © WTO - OMC 2010 edna.ramirezrobles@wto.org

  9. DS EU Experience (WTO & FTAs) © WTO - OMC 2010 edna.ramirezrobles@wto.org

  10. Reasons for the lack of use of DSM in EU FTAs (static) • Political • Economical • Legal • Other © WTO - OMC 2010 edna.ramirezrobles@wto.org

  11. 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 © WTO - OMC 2010 edna.ramirezrobles@wto.org

  12. 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 • Governments shall increase the dispute settlement mechanisms importance when negotiating FTAs • DSU will remain as the main forum for trade disputes © WTO - OMC 2010 edna.ramirezrobles@wto.org

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