98-13880. Trade Policy Staff Committee: Request for Comments Concerning Review of the World Trade Organization Dispute Settlement Understanding

[Federal Register Volume 63, Number 100 (Tuesday, May 26, 1998)]
[Notices]
[Pages 28543-28544]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13880]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Trade Policy Staff Committee: Request for Comments Concerning 
Review of the World Trade Organization Dispute Settlement Understanding

ACTION: Notice and request for comments.

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SUMMARY: The Office of the U.S. Trade Representative (USTR) is 
soliciting public comments on the United States position in the 
upcoming review of the Understanding on Rules and Procedures Governing 
the Settlement of Disputes (Dispute Settlement Understanding, or DSU) 
under the World Trade Organization (WTO) Agreement. The

[[Page 28544]]

DSU provides the rules for settlement of disputes concerning rights and 
obligations under the Uruguay Round agreements administered by the WTO. 
Interested persons are invited to submit their comments by June 25, 
1998.

FOR FURTHER INFORMATION CONTACT:
Amelia Porges, Senior Counsel for Dispute Settlement, Office of the 
USTR, [phone], or William Kane, Associate General Counsel, 
Office of the USTR, [phone].

SUPPLEMENTARY INFORMATION: The DSU provides a mechanism for the 
settlement of disputes between the governments which are members of the 
WTO, concerning rights and obligations under the Uruguay Round 
agreements. A panel of neutral experts conducts each dispute settlement 
proceeding and issues a report, which is considered by the Dispute 
Settlement Body (DSB) in which representatives of all WTO members 
participate. The DSB must adopt all panel reports within 60 days after 
they are circulated, unless one of the parties to the dispute notifies 
the DSB that it will appeal the decision (or the DSB decides by 
consensus to reject the report). Appeals are heard by the WTO Appellate 
Body (AB), which also issues a report. The DSB must adopt an appellate 
body report within 30 days after circulation (unless there is a 
consensus not to do so).
    When it finds a measure is inconsistent with one of the covered 
agreements, a panel or the AB must recommend that the government 
concerned bring that measure into conformity with the agreement. At a 
DSB meeting held within 30 days after the panel or AB report is 
adopted, that government must state its compliance plans. The 
``reasonable period'' for compliance can be determined by obtaining DSB 
approval of a time period proposed by that government, or by agreement 
between the disputing parties, or by binding arbitration. If a 
government does not comply with the recommendation to bring a measure 
into conformity with its WTO obligations, it must negotiate with the 
complaining government(s) on compensation, and the negotiations must 
start by the end of the ``reasonable period''. If there is no agreement 
on compensation by 20 days after the end of the ``reasonable period'', 
a complaining government may ask the DSB to authorize it to suspend 
trade benefits with respect to the non-complying party. By 30 days 
after the end of the ``reasonable period'', the DSB must grant such a 
request to suspend benefits (unless there is consensus otherwise). Such 
a suspension must be equivalent to the benefits the defending country 
is impairing by its WTO-inconsistent actions.
    A Decision of trade ministers agreed on April 15, 1994, at the 
conclusion of the Uruguay Round of multilateral trade negotiations, 
invites the WTO Ministerial Conference to complete a ``full review'' of 
WTO dispute settlement rules and procedures within four years after the 
entry into force of the WTO Agreement and ``to take a decision on the 
occasion of its first meeting after the completion of the review, 
whether to continue, modify or terminate'' those rules and procedures. 
Under the WTO Agreement, this work may be carried out by the WTO's 
General Council. Discussions have begun on the organization of the 
review. A principal objective of the United States in the WTO, 
including in this review, is to enhance the openness and transparency 
of WTO meetings, decisions and dispute settlement proceedings.
    Detailed information on the WTO and dispute settlement is available 
on the Internet at http://www.ustr.gov/reports/tpa/1998/iv.pdf; the 
text of the DSU is available on the Internet at http:www.wto.org/wto/
dispute/dsu.htm.
    Interested persons are invited to submit their comments on whether 
the WTO should continue, modify or terminate the DSU; on specific 
modifications which should be made to WTO dispute settlement rules and 
procedures; and on specific policies which the United States should 
pursue in this review. Comments should be filed no later than June 25, 
1998. Comments must be in English and provided in 20 copies to Gloria 
Blue, Executive Secretary, Trade Policy Staff Committee, Office of the 
United States Trade Representative, Room 501, 600 17th Street, 
Washington, DC 20508. Commenters are requested to submit only non-
confidential information and not to submit business confidential 
information. Non-confidential information received will be available 
for public inspection by appointment, in the USTR Reading Room, Room 
101, Monday through Friday, 10:00 a.m. to 12:00 noon and 1:00 p.m. to 
4:00 p.m. For an appointment call Brenda Webb on 202-395-6186.
Frederick L. Montgomery,
Chairman, Trade Policy Staff Committee.
[FR Doc. 98-13880 Filed 5-22-98; 8:45 am]
BILLING CODE 3190-01-M