giouserrorsconstituteafailuretomakeanobjectiveassessmentofthefactsasrequiredbyArticle11oftheDSU.”17 VExerciseofJudicialEconomy Inthisregard,whatwewillnextdiscussistheissueofwhetherArt.11oftheDSUentitlesacomplainingpartytoafindingoneachofthelegalclaimsitmakestoapanel.Asisthecoreofso-calledjudicialeconomyprinciplederivedfromArt.11oftheDSU.TheprincipleofjudicialeconomyisnotexplicitlyprovidedinanyarticlesoftheDSUoranyothercoveredagreementsundertheWTO.However,itisafundamentalprincipleundertheWTOjurisprudence,whichismorethanonetimeexercisedbypanelsandthenupheldbytheAppellateBodyduringthedisputessettlement. InUS-ShirtsandBlouses(DS33),thePanelstatesinparagraph6.6oftheitsReport:“ConcerningIndia’sargumentthatArticle11oftheDSUentitlesIndiatoafindingoneachoftheissuesitraised,wedisagreeandrefertotheconsistentGATTpanelpracticeofjudicialeconomy.Indiaisentitledtohavethedisputeoverthecontested‘measure’resolvedbythePanel,andifwejudgethatthespecificmatterindisputecanberesolvedbyaddressingonlysomeoftheargumentsraisedbythecomplainingparty,wecandoso.We,therefore,decidetoaddressonlythelegalissueswethinkareneededinordertomakesuchfindingsaswillassisttheDSBinmakingrecommendationsoringivingrulingsinrespectofthisdispute.”18Asisappealed.AndtheAppellateBodymakeandetailedanalysisontheprincipleofjudicialeconomyfromtheprovisionsoftheDSUaswellaspracticeundertheGATT1947andtheWTOAgreement:19 AsprovidedinArt.11oftheDSU,thefunctionofpanelsistoassisttheDSBindischargingitsresponsibilitiesundertheDSUandthecoveredagreements.NothinginthisprovisionorinpreviousGATTpracticerequiresapaneltoexaminealllegalclaimsmadebythecomplainingparty. Firstly,previousGATT1947andWTOpanelshavefrequentlyaddressedonlythoseissuesthatsuchpanelsconsidersnecessaryfortheresolutionofthematterbetweentheparties,andhavedeclinedtodecideotherissues.Thus,ifapanelhasfoundthatameasureisinconsistentwithaparticularprovision,itgenerallydoesnotgoontoexaminewhetherthemeasureisalsoinconsistentwithotherprovisionsthatacomplainingpartymayhavearguedareviolated.InrecentWTOpractice,panelslikewisehaverefrainedfromexaminingeachandeveryclaimmadebythecomplainingpartyandhavemadefindingsonlyonthoseclaimsthatsuchpanelsconcludearenecessarytoresolvetheparticularmatter.AlthoughafewGATT1947andWTOpanelshavemadebroaderrulings,byconsideringanddecidingissuesthatarenotabsolutelynecessarytodisposeoftheparticulardispute,thereisnothinganywhereintheDSUthatrequirespanelstodoso. Secondly,sucharequirementforapanelastoaddressonallclaimsthecomplainantmadeisnotconsistentwiththeaimoftheWTOdisputesettlementsystem.Art.3.7oftheDSUexplicitlystates:“Theaimofthedisputesettlementmechanismistosecureapositivesolutiontoadispute.Asolutionmutuallyacceptabletothepartiestoadisputeandconsistentwiththecoveredagreementsisclearlytobepreferred.”Thus,thebasicaimofdisputesettlementintheWTOistosettledisputes.ThisbasicaimisaffirmedelsewhereintheDSU.Art.3.4,forexample,stipulates:“RecommendationsorrulingsmadebytheDSBshallbeaimedatachievingasatisfactorysettlementofthematterinaccordancewiththerightsandobligationsunderthisUnderstandingandunderthecoveredagreements.” Furthermore,Art.3.2oftheDSUstatesthattheMembersoftheWTO“recognize”thatthedisputesettlementsystem“servestopreservetherightsandobligationsofMembersunderthecoveredagreements,andtoclarifytheexistingprovisionsofthoseagreementsinaccordancewithcustomaryrulesofinterpretationofpublicinternationallaw”.GiventheexplicitaimofdisputesettlementthatpermeatestheDSU,theAppellateBodydoesnotconsiderthatArt.3.2oftheDSUismeanttoencourageeitherpanelsortheAppellateBodyto“makelaw”byclarifyingexistingprovisionsoftheWTOAgreementoutsidethecontextofresolvingaparticulardispute. Insum,asruledbytheAppellateBodyinIndia-PatentProtection(DS50),“nUnitedStates-ShirtsandBlouses,wesaidthat‘[a]panelneedonlyaddressthoseclaimswhichmustbeaddressedinordertoresolvethematterinissueinthedispute’.Thismeansthatapanelhasthediscretiontodeterminetheclaimsitmustaddressinordertoresolvethedisputebetweentheparties--providedthatthoseclaimsarewithinthatpanel’stermsofreference”.20 However,isthereanylimitstosuchadiscretionexercisedasjudicialeconomy?Withregardtothisissue,theAppellateBodyinAustralia-Salmon(DS18)findsthat,theprincipleofjudicialeconomyhastobeappliedbypanelskeepingintheirmindtheaimofthedisputesettlementsystem,i.e,“tosecureapositivesolutiontoadispute”asprovidedforinArt.3.7oftheDSUandaffirmedinArt.3.4oftheDSU,whichstipulates:“RecommendationsorrulingsmadebytheDSBshallbeaimedatachievingasatisfactorysettlementofthematterinaccordancewiththerightsandobligationsunderthisUnderstandingandunderthecoveredagreements.”Therefore,toprovideonlyapartialresolutionofthematteratissuewouldbefalsejudicialeconomy.ApanelhastoaddressthoseclaimsonwhichafindingisnecessaryinordertoenabletheDSBtomakesufficientlypreciserecommendationsandrulingssoastoallowforpromptcompliancebyaMemberwiththoserecommendationsandrulings“inordertoensureeffectiveresolutionofdisputestothebenefitofallMembers”.21 Tosumup,asruledbytheAppellateBodyinUS-LampMeat(DS177/DS178),“ontheissueofpanels’exerciseofjudicialeconomy,wehavepreviouslyexplainedthatpanels‘needonlyaddressthoseclaimswhichmustbeaddressedinordertoresolvethematterinissueinthedispute’.Atthesametime,the‘discretion’apanelenjoystodeterminewhichclaimsitshouldaddressisnotwithoutlimits,asapanelisobliged‘toaddressthoseclaimsonwhichafindingisnecessaryinordertoenabletheDSBtomakesufficientlypreciserecommendationsandrulingssoastoallowforpromptcompliancebyaMemberwiththoserecommendationsandrulings’”.22 【NOTE】: 1. See,StevenP.CroleyandJohnH.Jackson,‘WTODisputePanelDeferencetoNationalGovernmentDecisions.TheMisplacedAnalogytotheU.S.ChevronStandard-Of-ReviewDoctrine’,InternationalTradeLawandtheGATT/WTODisputeSettlementSystem(PetersmannEd.),KluwerLawInternational,London,1997,pp.187-188. 2. Supra.note1,p.208. 3. Supra.note1,p.192. 4. See,WT/DS33/R/7.16. 5. See,WT/DS26/AB/R;WT/DS48/AB/R/114;116. 6. Seealso,WT/DS121/AB/R/118-120. 7. See,WT/DS26/AB/R;WT/DS48/AB/R/111. 8. See,WT/DS26/AB/R;WT/DS48/AB/R/117. 9. See,WT/DS24/R/7.10-7.11. 10. See,WT/DS121/R/8.118-8.121. 11. See,indetail,WT/DS177/AB/R;WT/DS178/AB/R/106-107. 12. See,WT/DS192/AB/R/76. 13. See,MaryE.Footer,‘SomeAspectsofThirdPartyInterventioninGATT/WTODisputeSettlementProceedings’,InternationalTradeLawandtheGATT/WTODisputeSettlementSystem(PetersmannEd.),KluwerLawInternational,London,1997,pp.209-210. 14. Supra.note13,p.210. 15. See,WT/DS26/AB/R;WT/DS48/AB/R/133. 16. See,WT/DS69/AB/R/133. 17. See,WT/DS76/AB/R/141. 18. See,WT/DS33/R/6.6. 19. See,indetail,WT/DS33/AB/R/VI. 20. See,WT/DS50/AB/R/87. 21. See,indetail,WT/DS18/AB/R/223. 22. See,WT/DS177/AB/R;WT/DS178/AB/R/191.
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