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WTO Dispute Settlement Mechanism(2)
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ChapterⅡ
  CausesofActionbeforetheDSB:
  Art.XXIIIoftheGATT1994
  
  OUTLINE
  
  SectionOneRighttoPursueaProceedingundertheWTO
  ITheConceptofNullificationorImpairment
  IITheStandingIssuebeforetheDSB
  IIILackofPossibleCompensation
  IVSummaryandConclusions
  SectionTwoCausesofActionbeforetheDSBinGeneral
  IThePresumptioninViolationComplaints
  (i)Introduction
  (ii)PracticeundertheGATTJurisprudence
  (iii)RulingsundertheWTOJurisprudence
  (iv)ASummary
  IIAnOverviewofNon-ViolationComplaints
  (i)RelatedTexts
  (ii)RelationshipbetweenArts.XXIII:1(a)andXXIII:1(b)
  (iii)UnderlyingPurposeofArt.XXIII:1(b)
  (iv)Non-violationClaimsintheContextofPrinciplesofCustomaryInternationalLaw
  (v)AppropriateAttitudesastoNon-ViolationRemedy
  IIIPresupposedSituationComplaints
  SectionThreeEstablishmentofNon-violationComplaints
  IIntroduction
  IIApplicationofaMeasure:ScopeofMeasuresCoveredbyArt.XXIII:1(b)
  (i)MeasuresshortofLegallyBindingObligations
  (ii)MeasuresFallingunderOtherProvisionsoftheGATT1994
  (iii)MeasuresConcerningtheProtectionofHumanHealth
  (iv)MeasuresContinuinglyApplied
  IIIExistenceofaBenefit:ProtectionofLegitimateExpectations
  (i)ProtectionofLegitimateExpectations(PLE)
  (ii)Non-foreseeabilityofMeasuresatIssue
  (iii)BenefitsintheNegotiations
  (iv)BenefitsunderSuccessiveRounds
  IVNullificationorImpairmentofBenefit:Causality
  VSummaryandConclusions
  
  SectionOne
  RighttoPursueaProceedingundertheWTO
  
  ITheConceptofNullificationorImpairment
  
  NullificationorimpairmentisamostimportantconceptdevelopedinpreviousGATTdisputesettlementsystem.ItisincorporatedintotheGATT1994bytheso-calledincorporationclause(paragraph1oftheGATT1994)andgoesontooperateasanimportantfeatureoftheDSUundertheWTO.DisputesettlementmechanismundertheWTOcontinuestorevolvearoundtheconceptofnullificationorimpairment.Art.3.1oftheDSUrequiresMembersto“affirmtheiradherencetotheprinciplesforthemanagementofdisputesheretoforeappliedunderArticlesXXIIandXXIIIofGATT1947”.
  AccordingtoArt.XXIII:1oftheGATT,aMembermayhaverecoursetodisputesettlementundertheWTOwhenitconsidersthat:
  
  “...anybenefitaccruingtoitdirectlyorindirectlyunderthisAgreementisbeingnullifiedorimpairedorthattheattainmentofanyobjectiveoftheAgreementisbeingimpededastheresultof
  (a)thefailureofanothercontractingparty[MemberoftheWTO]tocarryoutitsobligationsunderthisAgreement,or
  (b)theapplicationbyanothercontractingparty[MemberoftheWTO]ofanymeasure,whetherornotitconflictswiththeprovisionsofthisAgreement,or
  (c)theexistenceofanyothersituation.”
  
  Asitimplies,unlikethatinmanyotherdisputesettlementproceduresgenerallydesignedtoresolvedifferencesontheinterpretationorapplicationoftheprovisionsundermostinternationaltreaties,internationalresponsibilityinWTOlawisnotassessedonlyintermsofcompliancewiththespecificprovisionsoftherelevantagreements.Rather,itistheideaofnullificationorimpairmentthatdetermineswhetherrightstocomplainariseunderthecoveredagreement.
  Art.XXIII:1suggeststhatlegalconsiderationsneednotbethesolefocusofacomplaintundertheDSU,andthattheDSUprocedurescanbeinvokedforthesettlementofanytradedisputearisingfromanygovernmentalmeasure,whetherlegalorillegal,andthatarisingfromanysituation,whetherattributabletoagovernmentornot.Amemberdemonstratingthatameasureoranyothersituationnullifiedorimpairedtheirbenefitsaccruingtothecoveredagreementsisgivenredresseveniftherewasnofailuretocarryouttheobligations.What’smore,abenefitdoesn’tneedtoaccruedirectlytotheparty;anindirectbenefitisprotectedaswell.ItseemsthattheaimofArt.XXIII:1istoensurethatthenegotiatedbalanceofconcessionsismaintainedeveninsituationsthatcannotbeforeseenandthatcanconsequentlynotbedefined.
  Inpractice,itisdemonstratedthatpanelsandtheAppellateBodyhavebroadlydefinednullificationorimpairmentofabenefit.Theequationof“nullificationorimpairment”with“upsettingthecompetitiverelationship”establishedbetweenmembershasbeenconsistentlyused.However,asaresultofthedivergencebetweenthetextoftheprovisionsandthepracticeunderit,theactualscopeandfunctionoftheconceptofnullificationorimpairmentisoftenmisunderstood.ItishelpfulfortheclarificationofthisconcepttogofurtherintothestandingissuebeforetheDSB.
  
  IITheStandingIssuebeforetheDSB
  Theterm“standing”hasnotbeenexplicitlyembodiedinthetextoftheDSUorinanyothercoveredagreements.Itisusedhereforthepurposeofexaminingwhetherapartymustdemonstratetheexistenceofsomeinterestconcerned,asusuallyrequiredindomesticjudicialprocess,inlaunchingacomplaintbeforetheDSB.
  InEC-Bananas(DS27)1,theAppellateBodydoesnotacceptthattheneedfora“legalinterest”isimpliedintheDSUorinanyotherprovisionoftheWTOAgreementwhentheECqueriestherightofUStobringclaimsundertheGATT1994.Duringtheappellatereview,theAppellateBodyagreewiththePanelthat,“neitherArt.3.3nor3.7oftheDSUnoranyotherprovisionoftheDSUcontainsanyexplicitrequirementthataMembermusthavea‘legalinterest’asaprerequisiteforrequestingapanel”.AsfoundbytheAppellateBody,itistruethatunderArt.4.11oftheDSU,aMemberwishingtojoininmultipleconsultationsmusthave“asubstantialtradeinterest”,andthatunderArt.10.2oftheDSU,athirdpartymusthave“asubstantialinterest”inthematterbeforeapanel.ButneitheroftheseprovisionsintheDSU,noranythingelseintheWTOAgreement,providesabasisforassertingthatpartiestothedisputehavetomeetanysimilarstandard.
  TheparticipantsinthisappealalsorefertocertainjudgmentsoftheInternationalCourtofJusticeandthePermanentCourtofInternationalJusticerelatingtowhetherthereisarequirement,ininternationallaw,ofalegalinteresttobringacase.TheAppellateBodycannotreadanyofthesejudgmentsasestablishingageneralrulethatinallinternationallitigationacomplainingpartymusthavea“legalinterest”inordertobringacase.Nordotheythinkthatthesejudgmentsdenytheneedtoconsiderthequestionofstandingunderthedisputesettlementprovisionsofanymultilateraltreaty,byreferringtothetermsofthattreaty.ThisleadstheAppellateBodytoexamineArt.XXIIIoftheGATT1994,whichisthedisput

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