UNDERSTANDING THE WTO:
SETTLING DISPUTES
Case study: the timetable in practice
On 23 January 1995, Venezuela complained to the Dispute Settlement Body that the United States was applying rules that discriminated against gasoline imports, and formally requested consultations with the United States. Just over a year later (on 29 January 1996) the dispute panel completed its final report. (By then, Brazil had joined the case, lodging its own complaint in April 1996. The same panel considered both complaints.) The United States appealed. The Appellate Body completed its report, and the Dispute Settlement Body adopted the report on 20 May 1996, one year and four months after the complaint was first lodged.
The United States and Venezuela then took six and a half months to agree on what the United States should do. The agreed period for implementing the solution was 15 months from the date the appeal was concluded (20 May 1996 to 20 August 1997).
The case arose because the United States applied stricter rules on the chemical characteristics of imported gasoline than it did for domestically-refined gasoline. Venezuela (and later Brazil) said this was unfair because US gasoline did not have to meet the same standards ?it violated the 搉ational treatment?principle and could not be justified under exceptions to normal WTO rules for health and environmental conservation measures. The dispute panel agreed with Venezuela and Brazil. The appeal report upheld the panel抯 conclusions (making some changes to the panel抯 legal interpretation). The United States agreed with Venezuela that it would amend its regulations within 15 months and on 26 August 1997 it reported to the Dispute Settlement Body that a new regulation had been signed on 19 August.
|
Time |
Target/ actual period |
Date |
Action |
|
-5 years |
1990 |
US Clean Air Act amended |
|
|
-4 months |
September 1994 |
US restricts gasoline imports under Clean Air Act |
|
|
0 |
?i>60 days?/i> |
23 January 1995 |
Venezuela complains to Dispute Settlement Body, asks for consultation with US |
|
+1 month |
24 February 1995 |
Consultations take place. Fail. |
|
|
+2 months |
25 March 1995 |
Venezuela asks Dispute Settlement Body for a panel |
|
|
+2?months |
?i>30 days?/i> |
10 April 1995 |
Dispute Settlement Body agrees to appoint panel. US does not block. (Brazil starts complaint, requests consultation with US.) |
|
+3 months |
28 April 1995 |
Panel appointed. (31 May, panel assigned to Brazilian complaint as well) |
|
|
+6 months |
9 months (target is 6-9) |
10-12 July and 13-15 July 1995 |
Panel meets |
|
+11 months |
11 December 1995 |
Panel gives interim report to US, Venezuela and Brazil for comment |
|
|
+1 year |
29 January 1996 |
Panel circulates final report to members |
|
|
+1 year, 1 month |
21 February 1996 |
US appeals |
|
|
+1 year, 3 months |
?0 days?/i> |
29 April 1996 |
Appellate Body submits report |
|
+1 year, 4 months |
?0 days?/i> |
20 May 1996 |
Dispute Settlement Body adopts panel and appeal reports |
|
+1 year, 10?months |
3 December 1996 |
US and Venezuela agree on what US should do (implementation period is 15 months from 20 May) |
|
|
+1 year, 11?months |
9 January 1997 |
US makes first of monthly reports to Dispute Settlement Body on status of implementation |
|
|
+2 years, 7 months |
19-20 August 1997 |
US signs new regulation (19th). End of agreed implementation period (20th) |
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