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WTODisputeSettlementMechanism
　　
　　------AnAnalysisoftheDSUinPositivism
　　
　　
　　by
　　Chengwei,Liu
　　
　　
　　
　　Foreword
　　ThisbookisasystematicallyselectedcompilationofReportsissuedbyvariouspanelsandthestandingAppellateBody,thenadoptedbytheDSBundertheWTOjurisdictionbytheendofMay2002,incategoryofsubjectssuchascausesofaction,initiationofpanelproceedings,functionofpanels,rulesofevidenceandspecialrulesgoverninganti-dumpingdisputes,etc.,whichareinmostcasesruledas“preliminaryissues”or“proceduralobjections”.However,thisbookisnotintendedtobeexhaustive.ItdealsonlywithissuesindisputesettlementproceedingsundertheWTOjurisprudencethattheauthorconsidersthemoreimportant,wheresuchrulesaremainlyconcernedasArt.XXIIIoftheGATT1994;Arts.3,4,6,7,10,11,13,21.5,23,26oftheDSU;Arts.17.4,17.5,17.6oftheADAgreementandArts.31,32oftheViennaConventionandsoon.
　　Moreover,thisbookisintendedtobedescriptiveandpositiveratherthanprescriptiveandtheoretical.Mostoftheauthor’sanalysisbenefitsmuchfromthepreciseandlogicallyorganizedreportsbypanelsandtheAppellateBody,administeredbytheDSBundertheWTOjurisdiction.Itmustbemadeclearthatthesereportsdonotconstitutebinding“subsequentpractice”referredtoinArticle31oftheViennaConventionontheLawofTreaties,nordotheyoperateasstaredecisis,panelsandtheAppellateBodyarethereforenotboundbypastreports.Nevertheless,itdoesbethecasedemonstratedbytheDSBpracticethat,relevantreasoninginaparticularcasehasbeencitedorfollowedfrequentlybyanotherpanelorconfirmedbytheAppellateBodyinsubsequentcases.
　　AsruledbytheAppellateBodyinJapan-TaxesonAlcoholicBeverages(DS44),“[a]doptedpanelreportsareanimportantpartoftheGATTacquis.Theyareoftenconsideredbysubsequentpanels.TheycreatelegitimateexpectationsamongWTOMembers,and,therefore,shouldbetakenintoaccountwheretheyarerelevanttoanydispute”.Furthermore,apanelcouldneverthelessfindusefulguidanceinthereasoningofanunadoptedpanelreportwhenitconsidersrelevant.Moreimportantly,asstatedintheletterwithwhichtheAppellateBodyconveyedintheFebruaryof1996itsWorkingProceduresforAppellateReviewtotheDSBforinformation,“…itisalsoimportanttoensureconsistencyandcoherenceinourdecision-making,whichistotheadvantageofeveryWTOMemberandtheoverallmultilateraltradingsystemweallshare”.
　　Thereisnodoubtthat,inlinewiththepragmaticevolutionoftheGATTdisputesettlementsystem,theprogressiveclarificationofanumberofissuesthatarenotpreciselyregulatedintheDSUandthefurtherdevelopmentoftheWTOdisputesettlementprocedures,willgraduallyevolveafterhavingbeentestedandprogressivelyclarifiedandimprovedinconcretedisputesettlementcases.
　　Consideringallofthis,theauthorcompletethisbookwithserious-mindedexploringexaminationandgreatdiligence,bearinginmindthatitisthereforepracticalandofgreatsignificanceforWTOMemberstobeinformedofthevaluablerulingsinthosereportsissuedbypanelsandtheAppellateBodyinparticularcases.
　　
　　ListofAbbreviations
　　
　　ATCAgreementonTextileandClothing
　　BISDBasicInstrumentsandSelectedDocuments(publishedbyGATT)
　　DSUUnderstandingonRulesandProceduresGoverning
　　theSettlementofDisputes
　　DSBDisputeSettlementBody
　　ECTheEuropeanCommunities
　　GATSGeneralAgreementonTradeinServices
　　GATTGeneralAgreementonTariffsandTrade
　　IMFInternationalMonetaryFund
　　PGEPermanentGroupofExperts(intheSCMAgreement)
　　SCMSubsidiesandCountervailingMeasures
　　SGAgreementonSafeguards
　　SPSSanitaryandPhytosanitaryMeasures
　　TBTTechnicalBarrierstoTrade
　　TMBTextilesMonitoringBody
　　TRIMSTrade-relatedInvestmentMeasures
　　TRIPSTrade-relatedAspectsofIntellectualPropertyRights
　　TSBTextilesSurveillanceBody
　　WIPOWorldIntellectualPropertyOrganization
　　WTOWorldTradeOrganization
　　TableofContents
　　
　　ChapterITrendtowards“Judicialization”:
　　ARule-orientedDisputeSettlementSystem
　　ChapterIICausesofActionbeforetheDSB:
　　Art.XXIIIoftheGATT1994
　　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
　　ChapterIIIInitiationofPanelProcedures
　　SectionOneRoleofConsultations:Art.4
　　ITheImportanceofConsultations
　　IIIssuesConcerningthe“adequacy”ofConsultations
　　SectionTwoEstablishmentofPanels:Art.6.2
　　IIntroduction
　　IIIndicationofConsultationsProcess
　　IIIIdentificationof“thespecificmeasuresatissue”
　　IVProvisionof“abriefsummaryofthelegalbasisofthecomplaint”
　　VConcludingRemarks
　　SectionThreeTermsofReferenceofPanels:Art.7
　　IIntroduction
　　IIEffectofConsultationsonTermsofReferenceofPanels
　　IIIThe“matterreferredtotheDSB”
　　SectionFourTheMandateofCompliancePanels:Art.21.5
　　IIntroduction
　　IIClarificationof“measurestakentocomply”
　　IIIPerspectiveofReviewunderArt.21.5
　　IVExaminationoftheNewMeasureinItsTotalityandinItsApplication
　　SectionFiveThirdPartyRights:Art.10
　　IIntrod

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