Capitalising on DSU: The Challenge for China and Major Developing Countries
9th – 10th July 2008 • Co-organised with China Society for WTO Studies in collaboration with Shanghai WTO Affairs Consultation Centre and Law School of Wuhan University
International Dialogue on WTO Dispute Settlement Mechanism: Experience Sharing Among Developing Countries
Since its entry into the WTO, China placed a strong emphasis on not only increasing trade opportunities, but also on using the dispute settlement system (DSU) in the WTO to help establish more stable and predictable trade relations with its partners. Yet, developing countries—including major members such as China and Brazil—struggle to capitalise on DSU because of its complexity and intense resource-demands. In response, ICTSD and the China Society for WTO Development Studies have organised a dialogue event to examine the DSU structure, identify major challenges faced by developing country members, and draw on lessons from case studies. The dialogue will aim to use these shared experiences to identify new strategies for strengthening DSU and developing countries’ benefit from the system.
Since its entry into the WTO, China’s trade has grown rapidly, making it the world’s third largest trader today. Upon acquiring WTO membership, China placed a strong emphasis on the Dispute Settlement Understanding (DSU) system and hoped that this rules-based multilateral scheme could help the nation establish more stable and predictable trade relations with its partners as it grew. Given the enormity of China’s current trading, how the country participates in DSU will have important implications not only on its own trading partners, but the system itself.
Yet, unfortunately, the legalised mechanism of dispute settlement in the WTO is complex and resource-demanding, raising concerns about the capacity and ability of developing countries to effectively utilise the system to safeguard their trading rights and secure their development objectives. Developing country WTO Members thus need to make cost-effective adjustments if they are to gain from DSU.
In response, ICTSD and the China Society for WTO Development Studies have jointly organised a Beijing—based dialogue to focus on strengthening developing countries’ understanding of the options and potential strategies for advancing their trade objectives and defending their trade rights through the DSU system.
To identify strategies for improving developing countries’ ability to capitalise on DSU and global trading systems, the dialogue will focus on sharing dispute settlement experiences with specific attention on major developing countries like China, Brazil and India. Participants will examine the structure of DSU as it relates to these countries and draw on lessons from case studies. They will also undertake a thorough analysis of the major legal, financial, institutional and technical resource challenges faced by developing countries. Finally, the event will consider the reforms proposed as part of the review of the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes and the larger Doha development round of trade negotiations.
Through these exercises, the dialogue will aim to identify and explore new strategies that promote inter-governmental and private-public coordination and cooperation. It is hoped that a list of recommendations and future strategies aimed at improving the multilateral trading system and strengthening developing countries’ capacities to capitalise on DSU will be established at the dialogue’s conclusion. This will then be distributed among policy makers, negotiators, governments and other key stakeholders.
Like many of ICTSD’s dialogues, the event will be held in an informal setting that encourages active and open participation from all attendees. To help support this, simultaneous translations in English and Chinese will be provided.
Along with ICTSD and the China Society for WTO Studies, the event is being organized in collaboration with the WTO Studies School of Wuhan University and the Shanghai WTO Affairs Consultation Centre. The organizers are expecting the attendance of around fifty participants made up of international and Chinese experts representing a broad range of stakeholders including negotiators, government representatives, international governmental organisations, academics, legal practitioners, think-tanks, civil society bodies, and private industry.
The event is scheduled for 9-10 July 2008 at the Holiday Inn Chang Ann West Beijing, China.