Developing countries launch nearly half WTO disputes

Fri Nov 6, 2009 8:10am EST
 
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* WTO members file 400 trade disputes in 15 years

* U.S., EU most active, developing states launch nearly half

* Number of disputes has fallen in recent years

* More than half of disputes settled without litigation

By Jonathan Lynn

GENEVA, Nov 6 (Reuters) - Developing countries have launched nearly half of the disputes at the World Trade Organisation in its 15-year history, the WTO said on Friday.

The figures show the dispute system is open to smaller and poorer countries as well as rich trading powers, even though the United States and European Union are the two biggest users.

WTO Director-General Pascal Lamy said it was no surprise that the United States and European Union dominate the dispute system as they are the world's biggest traders.

"But the figures also show that developing countries do not play coy hand-maidens to their richer trading partners," he said in a statement.

The dispute system, which some members say is slow to produce and enforce rulings, is under review by the WTO's 153 members. But Lamy said there was no question of any fundamental changes in the "jewel in the crown" of the WTO which forms the bedrock of the multilateral trading system.

From 1995 to date, the United States has been the complainant in 93 disputes and the European Union in 81. Both have also been the biggest targets of disputes -- 107 and 66 respectively.

Other big users are Canada, which has been the plaintiff in 33 disputes, Brazil with 24 and Mexico with 21.

China, the target of 17 disputes, has launched 6. Developing countries have been plaintiffs in more than 45 percent of cases.

More than half the 400 disputes were settled without formal litigation before at a WTO panel, with differences resolved in consultations between the parties. A total of 186 went to litigation and 12 are currently the subject of consultations.

So far this year there have been 12 disputes at the WTO, down from 19 in all of 2008 and 13 in 2007, suggesting the financial crisis has not fuelled trading nations' litigiousness.  Continued...