The World Trade Organization and the Environment

By P. K. Rao | Go to book overview
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Panel report issued to parties
3 to 6 months from panel formation (Article 12.8; Appendix 3 para 12(j))
Panel report circulated to DSB
within the next 3 months (Article 12.9; Appendix 3 par 12 (k))
DSB adopts panel/appellate report(s)
including any changes to panel report made
by appellate report, 60 days for panel report (Article 16.1, 16.4 and 17.14)
Implementation
report by losing party of proposed implementation
within 'reasonable period of time', up to 15 months (Article 21.3)
In cases of non-implementation
parties negotiate compensation
pending full implementation (Article 22.2)
Retaliation
If no agreement on compensation, DSB authorizes retaliation
pending full implementation, 30 days after 'reasonable period' expires
(Article 22)
Cross-retaliation:
same sector, other sector, other agreement (Article 22.3)

Appendix II
Trade disputes on bananas

The United States and also four of the Latin American countries Ecuador, Guatemala, Honduras and Mexico lodged their complaint in 1996 with the World Trade Organization against the trading practices of the EU. This dispute arose as the EU is believed to have been in the practice of providing preferential treatment to the import of bananas from some of the former colonies of the British and the French in Africa, the Caribbean, and the Pacific. The recent trade dispute involving the US and EU is founded on a set of rather complex issues. On the surface, however, it appears deceptively simple: it is centered around the hurdles to free trade and the market access for bananas from the United States or its companies operating in many of the Latin American countries. Some suggested (from either side of the Atlantic) that the US hardly exports much of the bananas grown from its soil, and yet a fully-pledged trade dispute at the global level and a potential trade war was initiated. This is a consequence of an alleged failure of EU to comply with the rulings of the WTO. The present trading regime and the banana episode suggests the precipitation of the resultant outcome of the following factors: excessive reliance on legal procedures in lieu of economic diplomacy, interface of the interests of trading blocs like the European Union

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