univ. - prof. dr. werner meng, europa institut, saarland university, germany legitimacy of wto...

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Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

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Page 1: Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany

LEGITIMACY OF WTO DISPUTE SETTLEMENT

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Page 2: Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany

LEGITIMACY IS NOT LEGALITY

WHAT IS LEGAL MIGHT NOT BE ACCEPTED BY ALL STATES IN PUBLIC INTERNATIONAL

LAWD AS LEGITIMATE

E.G.: JUDGES AGAINST PARLIAMENTS

PROBLEM IN NATIONAL LAW, BUT PARTICULARLY IN INTERNATIONAL LAW

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Page 3: Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany

EXAMPLES

BIRD AMENDMENT CASE

DS against US Congress and sovereignty

Threat: No implementation of WTO DS decisions

DOLE COMMISSION

Suspicion against the Geneva judges

Threat: Leaving the DSU/WTO

HELMS BURTON CASE

Security Concerns

Damaging the DS procedure by disregarding it3

Page 4: Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany

Problems of Legitimacy

A new international court face to national legislation

Conflicts with Civil Society

Relations to other rules of international law

Political dimension of WTO law

Structure of the DS bodies

Procedural Rules: particularly lack of openness

Judicial activism

Protection of individuals

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Page 5: Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany

Thesis

Non-implementation of WTO law and DS decisions will quickly erode the whole WTO system that is based on law

If states find problems with the legitimacy of WTO DS they can remedy them in practice as well in changing the law.

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Page 6: Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany

A new court

New courts have to develop a standing of their own in a legal order like public international law where there is no means to really enforce their decision.

Being reliable and trustworthy, no activism, sticking to the powers conferred

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Page 7: Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany

Conflicts with Civil Society

Tuna - Dolphin cases in the end of GATT

„The GATT is blind to environment and human rights“

Increasing protests against limitations by public international law of the states in developing public policies.

ACTA, TTIP, Investor-State Arbitration

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Page 8: Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany

Relations to other rules of international law

The Appellate Body has clearly stated that WTO law is part of general public international law

It therefore is informed by the developments of that law that happened since 400 years before

This stabilizes the interpretation and refers also to other methodological rules of PIL

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Page 9: Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany

Political dimension of WTO law

GATT initially was a set of rules with economic background

GATT DS was to preserve the mutually agreed economic advantages („nullification or impairment“ by a diplomatic procedure)

In GATT this system was charged more and more with law (unlawfulness as „prima facie nullification or impairment“)

This state of the law has been transferred to the WTO legal system

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Page 10: Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany

Structure of the DS bodies

Dispute Settlement Body is diplomatic, but thanks to the reverse consensus not the real decision-maker in disputes. Parties may not block decisions

The DSB consists of carefully chosen specialists of WTO law and produces high quality decisions

The panels are like arbitral tribunals, the qualification is mixed. EU proposal: standing panels as first instance

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Page 11: Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany

Procedural rules

Closed door principle (at the disposition of the parties)

Amicus curiae briefs for panels yes, for the AB disputed (the developing countries object!)

Some negative experiences from the past will be remedied now

Procedures are always more specialized (and therefore a problem for DCs with limited human resources).

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Page 12: Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany

Judicial activism

Parties wanted to restrain the DS organs as much as possible: „may not add or diminish the law“

AB: right to use all methods of interpretation including the teleological one is natural for a highest court

MS are accepting the mildly progressive jurisprudence

AB tries to stick as close as possible to the texts of the WTO treaty system.

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Page 13: Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany

Protection of individual rights

WTO law contains no individual substantive or procedural rights

But it is designed to make individual traders trust in the protection of law

Individuals may complain to their states that may then initiate inter-state procedures.

Unfortunately the implementation procedure finally ends up as a system of controlled economic sanctions, that do not take into consideration individual rights

But this cannot be changed in a decentralized legal system without enforcement police powers

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Page 14: Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany

Why still international DS?

It is the only means to secure the rule of law with impartiality

that states and individuals (to a certain extent) may trust in

Reciprocity of submission

Mandatory and exclusive jurisdiction

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Page 15: Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany

Possible SolutionsDiplomacy is increasingly suspicious to Civil Society groups

more transparent procedures: open doors and amicus admission

strengthening the trust in the purely legal function of DS

independence, impartiality and legal security

self-control of judicial activism

Legal control of parliaments is indispensable in areas of legislation, if arbitrariness should be avoided and the protection of individual rights should be guaranteed.

Control of parliaments and of state powers are only possible through courts (at least internationally)

The previous ratification in parliaments gives as much democratic legitimacy as possible for an international Court

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Page 16: Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany LEGITIMACY OF WTO DISPUTE SETTLEMENT 1

Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany

No arbitrary implementation

If member states are trying to take an exception to the general duty to implement WTO law and DS decisions, they are jeopardizing the whole DS system with its intrinsic value for the world trade order

Strict implementation of the DS rules is necessary for the functioning of the WTO as a whole.

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