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Call to include LDC representatives in WTO panel for dispute settlement

The Independent
January 27, 2004
Economic Reporter

 

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World trade experts yesterday said that the existing dispute settlement mechanism within the ambit of the World Trade Organisation (WTO) is highly tilted against poor countries. In addition, they said, the developed world often give the cold shoulder to the interests of the poor nations, struggling to increase their share of global trade. They were speaking at a dialogue on "Dispute Settlement of in the WTO: How friendly is it for the LDCs" at CIRDAP auditorium in the city. Centre for Trade Policy and Law of Canada sponsored the dialogue. Commerce Minister Amir Khosru Mahmud Chowdhury attended the dialogue as the chief guest. It has been observed that over 280 disputes brought in WTO for solutions did not involve LDC. Presenting the keynote paper, Dennis Browne, Director Emeritus of CTPL, said that there is no enough provisions and legal contents in the dispute settlement issue in WTO agreement. Browne mentioned some remedies to improve the provisions on dispute settlement. Dispute settlement talk should be held in the capitals of least developed countries and no settlement talk will cross 60 days limit. There may have also options for use of good offices, conciliation, mediation in case of failure in consultation. In case of conciliation or mutual under-standing, both parties need to give extra 15 days to accept the solution proposal'. He made another proposal that in case of failure in consultation and mutual understanding stages, expeditious arbitration should see its result within 60 days instead of three years.

Besides, if any action of any country affects any enterprise of LDC, monetary compensation can be given, he added. 'Under the existing provisions of WTO agreement, dispute settlement is 'too complex, too expensive and time consuming. Usually any dispute settlement talk is held in Geneva. Dispute settlement process takes about three years'. Such huge time for any solution can affect the economy of LDC like Bangladesh, Director Emeritus of CTPL told the dialogue. 'Moreover, solutions following the existing provisions of dispute settlement understanding cannot repair the damages suffered by LDC enterprises'. Pointing out an unfavourable point for LDCs in WTO agreement, he said that any dispute accrued to WTO's benefit can be impaired or blocked by another member. In this case, he referred Bangladesh's situation in response to imposition of anti-dumping duties on Bangladeshi products.

As the safeguard measures for LDCs in the form of special and differential (S and D) treatment is neglected in the WTO provisions, he said, 'soft laws that include special and differential treatment provision tends to be nullified.' For this, most of the S and D measures are not enforceable'. Honouring the provisions is completely dependent on the good will of the opposite party, Browne said adding 'no progress has made on S and D issue after Doha Ministerial Declaration.' However, he recommended four approaches dispute avoidance, mutually agreed settlement, self-help and legal regulation for any meaningful solutions.

Khosru said that WTO panel for dispute settlement should include LDC representatives. To improve the WTO provisions on DSU, the Minister said that they would put forward concrete suggestions on twelve areas.

"We brought the consultation issue before anti-dumping and compensation issue in case of damages in the already signed SAFTA agreement and hope to push for these issues to be incorporated in WTO agreement," Khosru said.

About the funding of litigation for LDCs, the Minister said that such cost should come from global trust fund and there had such proposal in the Doha Declaration.

The dialogue was addressed, among others, by Tariff Commission Chairman Mohammad All Taslim and Awami League leader Mohammad Faruk Khan MP. The open discussion session of the dialogue was participated by representatives of political parties, government officials, business representatives, civil society activists and development partners.