Arbitration and dispute settlement procedures
The arbitration and dispute settlement procedure is an instrument for the (if possible) amicable settlement of subsidy-related conflicts between the contracting states of the GATT (= General Agreement on Tariffs and Trade ; German : General Customs and Trade Agreement ).
Contractual bases
It is part of the Subsidy Code and is based on Art. XXIII GATT. Contrary to Art. XXIII GATT, it takes place before a committee on subsidies and countervailing duties.
use cases
The arbitration and dispute settlement procedure can be initiated if the subsidy code is violated. On the other hand, it can be considered if the other alternative measure to ward off subsidies, namely the levying of countervailing duties, turns out to be an unsuitable means of defense. This is the case if a) imports into the state practicing domestic subsidies are hindered or displaced by it or b) an export subsidy affects the interests of an exporting country in that the subsidized exports displace similar unsubsidized exports from that country from the market of an importing third country .
Obligation to consult
If a signatory state is of the opinion that another signatory state grants export subsidies contrary to the code, it should first consult this state directly. However, if the consultation does not provide a satisfactory solution to the dispute, either party involved may, after a period of 30 or 60 days set for consultation, appeal to the committee to settle the dispute. The advantage over the previous regulation in Art. XXIII GATT lies in the obligation of the parties to comply with precise deadlines.
Establishment of a panel
If the arbitration efforts of the Committee on Subsidies and Countervailing Duties do not lead to an amicable solution, each party can - after a period of 30 days after submitting the arbitration request - request the establishment of a so-called panel . Its composition and tasks are now set out in detail in Art. 18 of the Subsidy Code, following the long-standing, previously uncodified ruling practice within the framework of the GATT. The panel shall, after examining the case to the Committee a report pronounce basis of which the Committee first appropriate recommendations to the parties in dispute. If the recommendations are not followed, the committee may impose appropriate sanctions, which may also include the withdrawal of concessions or obligations under the GATT.
(Other) advantages of the arbitration and dispute settlement procedure
The Subsidy Code, which includes the arbitration and dispute settlement procedure, as such brings about a legal specification of the provisions of the GATT, namely with regard to the granting and defense of subsidies. This legal specification has a very beneficial effect on the arbitration and dispute settlement procedure insofar as it now has a quasi-judicial character and is therefore highly efficient. Because of its high efficiency, the arbitration and dispute settlement procedure should also be more attractive from the perspective of the signatory states than the previous procedure under Art. XXIII GATT.
See also
Individual evidence
- ↑ Dietrich Scheffler, Legal Aspects of the Subsidy Problem in GATT, in: Law of the International Economy (RIW), p. 404
- ↑ Adamantopoulos, K., The Subsidy Law of the GATT in the EEC, Diss. (Saarbrücken), Cologne, Berlin, Bonn, Munich 1988, p. 41 ff (50 f)
- ↑ Art. 12 of the Subsidies Code
- ↑ Art. 13 Para. 1 Subsidies Code
- ↑ Art. 13 Para. 1 and 2 Subsidy Code
- ↑ Art. 17 Para. 3 Subsidies Code
- ↑ Bleckmann, A., Subsidy Problems of the GATT and the EC, Framework for the Law of Subsidies - International Part, in: Rabelszeitschrift (RabelsZ) 1984, p. 419 (425)
- ↑ Hilf, M., The application of GATT in German law, in: Hilf, M., Petersmann, EU (Ed.), GATT and European Community, Baden-Baden 1986, p. 11 ff
