THE DEVELOPMENT OF THE ASEAN TRADE DISPUTE SETTLEMENT MECHANISM: FROM DIPLOMACY TO LEGALISM KOESRIANTI

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In the late twentieth century international trade moved from a political multi-polar system based on the nation-state to a system featuring unified regional trading regimes. An inevitable feature of increased cooperation through bilateral, regional and international arrangements is the emergence of disputes over the interpretation and implementation of the agreed upon commitments. Accordingly, reliable mechanisms for the settlement of trade related disputes have become necessary to ensure the effective and continued functioning of these arrangements. Over the years these dispute settlement mechanisms have evolved from the relatively simple, diplomacy based structures called for in the GATT, to the...

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Nội dung Text: THE DEVELOPMENT OF THE ASEAN TRADE DISPUTE SETTLEMENT MECHANISM: FROM DIPLOMACY TO LEGALISM KOESRIANTI

THE DEVELOPMENT OF THE ASEAN TRADE DISPUTE SETTLEMENT MECHANISM: FROM DIPLOMACY TO LEGALISM KOESRIANTI  
THE DEVELOPMENT OF THE ASEAN TRADE DISPUTE SETTLEMENT MECHANISM: FROM DIPLOMACY TO LEGALISM KOESRIANTI A thesis submitted in accordance with the requirements for the award of the Degree of Doctor of Philosophy, Faculty of Law, University of New South Wales 2005
ABSTRACT In the late twentieth century international trade moved from a political multi-polar system based on the nation-state to a system featuring unified regional trading regimes. An inevitable feature of increased cooperation through bilateral, regional and international arrangements is the emergence of disputes over the interpretation and implementation of the agreed upon commitments. Accordingly, reliable mechanisms for the settlement of trade related disputes have become necessary to ensure the effective and continued functioning of these arrangements. Over the years these dispute settlement mechanisms have evolved from the relatively simple, diplomacy based structures called for in the GATT, to the detailed, legalistic, adjudication based mechanism found in the WTO. Bilateral and regional initiatives, such as NAFTA and MERCOSUR, as well as the EU, have similarly adopted dispute settlement mechanisms which adopt, in varying degrees, legalistic adjudicatory processes. Since 1967 ASEAN has spearheaded the creation of a regional trading bloc in the South East Asian region. As in other trading blocs, this has inevitable led to the need to develop effective and workable dispute settlement mechanisms. This thesis examines the development of trade dispute settlement mechanisms in ASEAN tracing its development from a model based on pragmatic diplomacy to a legalistic adjudicatory system with particular reference to the ASEAN context. It examines the extent to which the ASEAN context has influenced the content and the adoption of trade dispute settlement mechanisms in the region, as well as the extent to which the recently adopted 2004 Enhanced Protocol on Dispute Settlement can adequately address trade disputes in the region while remaining sensitive and responsive to the ASEAN context. Based on a comparative examination of dispute settlement mechanisms in other trade agreements, a range of key procedural issues are identified and examined with a view to identifying the prospects and challenges which ASEAN faces in the implementation of its dispute settlement mechanism. The thesis analyses the prospects and challenges of implementation the 2004 Enhanced Protocol on DSM. II
Acknowledgements I acknowledge my gratitude to my supervisors, Associate Professor Rosemary Rayfuse and Mr Bryan Mercurio for their encouragement, patience and invaluable guidance. Also, I would like to thank the following: Professor David Dixon, Associate Dean (Research) and Mr Angus Corbett, Associate Dean (Coursework) of the Law Faculty the University of New South Wales for their support during the writing of my thesis; Kerry Daley, Dawesh Chand, Gaha Reef, Annabel Sutherland, Tony Antoniou, and Reg Potter for their assistance on administrative and IT support: Emily McCarron and Nikki Chong for their assistance in proof reading this thesis; Mr Smara Dahana for information on ASEAN. I also thank Mr Machsoen Ali, Dean of the Law Faculty of the Airlangga University and his staff for their support during my study; my friends, Laylee Tang, Dan Svantesson, Robin Huang, Marie Ange, Scot Calnan, Cathy Hunter and Cassandra Goldie for making the Julius Stone PG room like home. I wish to record my gratitude to my friends, including but not limited to, Umi, Maria and Sony, Diah, Zaafri and Ayu, Made Andi, Srie and Richard, Nurul and Yudi, and Nestri for their support in making my stay in Sydney as a PhD student as enjoyable and lively as possible. Thanks also go to my friend Dina Sunyowati and my sisters and brothers, in particular, my sister Tri Andjarwati for their help while I was away from home. Finally, special thanks go to my beloved husband, Saiffudin Zuhri and my inspiring children, Andin and Avi who have supported me throughout my study. They are everything to me. III
ABSTRACT............................................................................................................. II ACKNOWLEDGEMENTS ...................................................................................... III FIGURES ................................................................................................................X FLOWCHART .........................................................................................................X APPENDICES .........................................................................................................X LIST OF SELECTED ABBREVIATIONS ...............................................................XI TABLE OF CASES ..............................................................................................XIII ASEAN TIME LINES........................................................................................... XVI TABLE OF TREATIES AND DECLARATIONS................................................. XVII INTRODUCTION..................................................................................................... 1 FORMULATION OF THE PROBLEM ........................................................................................................ 1 THE OBJECTIVE OF THE STUDY ............................................................................................................. 3 THE FRAMEWORK FOR ENQUIRY.......................................................................................................... 4 THE OUTLINE AND SCOPE OF THE STUDY .......................................................................................... 4 CHAPTER 1 – THE HISTORY, DEVELOPMENT AND STRUCTURE OF ASEAN 7 1.0 Introduction ................................................................................................................................................ 7 1.1 The ‘South East Asian’ Area ..................................................................................................................... 8 1.1.1 Early History ....................................................................................................................................... 8 1.1.2 The meaning of ‘South East Asia’ ................................................................................................... 10 1.1.3 The development of a ‘South East Asian’ identity- the SEATO Years ........................................ 11 1.2. The Formation of ASEAN ...................................................................................................................... 13 1.2.1 The early years .................................................................................................................................. 13 1.2.2 The Bangkok Declaration, 1967 ...................................................................................................... 14 1.2.3. The Bali Summit of 1976 ................................................................................................................. 15 1.3 The ASEAN Profile .................................................................................................................................. 17 1.4 The Organizational Structure of ASEAN............................................................................................... 24 1.4.1 The ASEAN Heads of Government Meeting (ASEAN Summit Meeting) ................................... 25 1.4.2 Ministerial Level Meetings............................................................................................................... 26 IV
1.4.3 ASEAN Standing Committee (ASC) ............................................................................................... 28 1.4.4 ASEAN Secretariat ........................................................................................................................... 29 1.4.5 The ASEAN National Secretariats .................................................................................................. 30 1.4.6 Other Organs .................................................................................................................................... 31 1.4.7 ASEAN committees in third countries (‘Dialogue Partners’) ....................................................... 31 1.5 Decision making in ASEAN ..................................................................................................................... 32 1.5.1 The musyawarah and muafakat ....................................................................................................... 32 1.5.2 The ASEAN Way: Consensus in ASEAN ....................................................................................... 34 1.5.3 Implementation of decisions ............................................................................................................ 39 1.6 The legal personality of ASEAN.............................................................................................................. 41 1.7 Conclusion................................................................................................................................................. 49 CHAPTER 2 – ASEAN AS A REGIONAL ECONOMIC ORGANIZATION ........... 52 2.0 Introduction .............................................................................................................................................. 52 2.1. The Beginnings of Trade Liberalization in ASEAN ............................................................................. 53 2.1.1 The Bali Concord I 1976 .................................................................................................................. 53 2.1.2 ASEAN Industrial Project, the ASEAN Industrial Complementation Scheme and the ASEAN Industrial Joint Venture............................................................................................................................ 55 2.1.3 ASEAN Preferential Trading Arrangements Agreement 1977 .................................................... 58 2.1.4. Formation of the ASEAN Free Trade Area (AFTA) .................................................................... 61 2.1.5. The ASEAN Industrial Cooperation Scheme (AICO) .................................................................. 66 2.1.6 The ASEAN Investment Area (AIA) ............................................................................................... 68 2.1.7. The ASEAN Framework Agreement on Services (AFAS) ........................................................... 71 2.2 Development of the ASEAN Economic Region...................................................................................... 73 2.2.1 The Asian financial crisis ................................................................................................................. 73 2.2.2 The ASEAN Vision 2020 .................................................................................................................. 76 2.2.3 The Hanoi Plan of Action (HPA) (1997-2004) and its succeeding plans ...................................... 78 2.3 Free Trade Agreements with external countries ................................................................................... 85 2.4 Towards an ASEAN Economic Community .......................................................................................... 87 2.4.1 The Bali Concord II of 2003............................................................................................................. 87 2.4.2 The ASEAN Security Community (ASC) ....................................................................................... 88 2.4.3 The ASEAN Socio-Cultural Community (ASCC) ......................................................................... 91 2.4.4 The ASEAN Economy Community (AEC) ..................................................................................... 92 2.4.5 The deadline for the establishment of the ASEAN Community ................................................... 97 2.5 Conclusion................................................................................................................................................. 99 CHAPTER 3 – DISPUTE SETTLEMENT MECHANISMS IN OTHER MAJOR ECONOMIC ORGANIZATIONS ......................................................................... 102 3.0 Introduction ............................................................................................................................................ 102 3.1 The European Community (EC) ........................................................................................................... 104 3.1.1 Brief Introduction to the organisation and its goals .................................................................... 104 3.1.2 The EC dispute settlement system ........................................................................................... 106 V
3.1.3 Permanent vs. ad hoc panels .......................................................................................................... 107 3.1.4 Independence of judicial officers ................................................................................................... 109 3.1.5 Private party rights to appear ....................................................................................................... 110 3.1.6 The precedential value of decisions ............................................................................................... 112 3.1.7 The adoption of decisions ............................................................................................................... 113 3.1.8 The enforceability of decisions....................................................................................................... 114 3.2 The General Agreement on Tariffs and Trade (GATT) ..................................................................... 117 3.2.1 Brief introduction to the organisation and its goals..................................................................... 117 3.2.2 The GATT dispute settlement system ........................................................................................... 119 3.2.3 Permanent vs. ad hoc panels .......................................................................................................... 122 3.2.4 The independence of panellists ...................................................................................................... 123 3.2.5 Private party rights to appear ....................................................................................................... 125 3.2.6 The precedential value of decisions ............................................................................................... 125 3.2.8 The enforceability of decisions....................................................................................................... 127 3.3 The World Trade Organization (WTO) ............................................................................................... 128 3.3.1 Brief introduction to the organisation and its goals..................................................................... 128 3.3.2 The WTO dispute settlement system ....................................................................................... 129 3.3.3 Permanent vs. ad hoc panels .......................................................................................................... 130 3.3.4 The independence of panellists ...................................................................................................... 132 3.3.5 Private party rights to appear ....................................................................................................... 133 3.3.6 The precedential value of decisions ............................................................................................... 134 3.3.7 The adoption of decisions ............................................................................................................... 135 3.3.8 The enforceability of decisions....................................................................................................... 136 3.4 North American Free Trade Agreement (NAFTA)............................................................................. 137 3.4.1 Brief introduction of the organisation and its goals..................................................................... 137 3.4.2 The NAFTA dispute settlement system......................................................................................... 138 3.4.3 Permanent vs. ad hoc panels .......................................................................................................... 139 3.4.4 The independence of panellists ...................................................................................................... 141 3.4.5 Private party rights to appear ....................................................................................................... 143 3.4.6 The precedential value of decisions ............................................................................................... 144 3.4.7 The adoption of decisions ............................................................................................................... 146 3.4.8 The enforceability of decisions....................................................................................................... 147 3.5 The Mercado Comun del Sur or Common Market of the Southern Cone (MERCOSUR) ............. 148 3.5.1 Brief introduction to the organisation and its goals..................................................................... 148 3.5.2 The MERCOSUR dispute settlement system ............................................................................... 149 3.5.3 Permanent vs. ad hoc panels .......................................................................................................... 151 3.5.4 The independence of panellists ...................................................................................................... 152 3.5.5 Private party rights to appear ....................................................................................................... 153 3.5.6 The precedential value of decisions ............................................................................................... 154 3.5.7 The adoption of the decisions ......................................................................................................... 155 3.5.8 The enforceability of decisions....................................................................................................... 155 3.6 Conclusion............................................................................................................................................... 156 CHAPTER 4 – KEY PROCEDURAL ISSUES OF DISPUTE SETTLEMENT MECHANISMS: TOWARDS A RELIABLE MECHANISM.................................. 158 4.0 Introduction ............................................................................................................................................ 158 4.1 Diplomatic dispute settlement processes .............................................................................................. 160 VI
4.1.1 Consultation .................................................................................................................................... 160 4.1.2 Good offices, conciliation and mediation ...................................................................................... 163 4.2 Adjudication Dispute Settlement Processes ......................................................................................... 164 4.2.1 Ad hoc vs. Permanent Panels ......................................................................................................... 164 4.2.2 Qualifications of panellists ............................................................................................................. 170 4.2.3 The independence of panellists ...................................................................................................... 172 4.3 The Issue of Transparency..................................................................................................................... 174 4.3.1 Transparency in trade organisations ............................................................................................ 174 4.3.2 Transparency in panel proceedings .............................................................................................. 176 4.3.3 Transparency and the parties’ submissions ................................................................................. 178 4.3.4 Transparency and public meetings ............................................................................................... 179 4.4 Participation of private individuals ...................................................................................................... 181 4.4.1 As counsel ........................................................................................................................................ 181 4.4.2 As litigant......................................................................................................................................... 183 4.4.3 As amicus curiae ............................................................................................................................. 186 4.4.4 As third party intervenor ............................................................................................................... 196 4.5 The Precedential effect of decisions ...................................................................................................... 199 4.5.1 Stare decisis and the Doctrine of Precedence ................................................................................ 199 4.5.2 Precedential effect of decisions ...................................................................................................... 201 4.6 The Desirability of appeal processes ..................................................................................................... 203 4.7 Enforceability of Decisions .................................................................................................................... 205 4.7.1 Adoption of decisions ...................................................................................................................... 205 4.7.2 The binding effect of decisions ....................................................................................................... 205 4.7.3 Implementation of decisions .......................................................................................................... 210 4.7.4 The effect of non-compliance with decisions ................................................................................ 211 4.8 Conclusion............................................................................................................................................... 219 CHAPTER 5 – TRADE DISPUTE SETTLEMENT IN ASEAN UP TO AFTA AND THE 1996 PROTOCOL ....................................................................................... 222 5.0 Introduction ............................................................................................................................................ 222 5.1 The Early Approach to Trade Dispute Settlement in ASEAN ........................................................... 223 5.2 Dispute settlement under AFTA ........................................................................................................... 229 5.2.1 The need for trade dispute settlement mechanism....................................................................... 229 5.2.2 The AFTA dispute settlement regime ........................................................................................... 230 5.2.3. The AFTA dispute settlement machinery .................................................................................... 233 5.2.4 An Assessment of the AFTA regime.............................................................................................. 234 5.3. The 1996 Protocol on Dispute Settlement Mechanism (the 1996 Protocol) ...................................... 237 5.3.1. Consultations .................................................................................................................................. 239 5.3.2 Good Offices, Conciliation and Mediation ................................................................................... 241 5.3.3 Panels ............................................................................................................................................... 241 5.3.4 Appellate Review ............................................................................................................................ 245 5.3.5 The Implementation of Recommendations/Rulings and Time Limits ....................................... 246 VII
5.3.6 An assessment of the 1996 Protocol............................................................................................... 246 5.6 Conclusion............................................................................................................................................... 249 CHAPTER 6 – THE ASEAN PROTOCOL ON ENHANCED DISPUTE SETTLEMENT MECHANISM (THE 2004 PROTOCOL)..................................... 250 6.0 Introduction ............................................................................................................................................ 250 6.1 Dispute resolution under the Bali Concord II...................................................................................... 250 6.1.1 ASEAN Legal Unit (Advisory Mechanisms) ................................................................................ 252 6.1.2. The ASEAN Consultation to Solve Trade and Investment Issues (ACT) stage (Consultative mechanisms) ............................................................................................................................................. 253 6.1.3 The ASEAN Compliance Monitoring Body (ACMB) or the ASEAN Compliance Board (ACB) - (Compliance mechanisms) ...................................................................................................................... 254 6.2 An assessment of the dispute settlement mechanisms under the Bali Concord II ............................ 255 6.3 The ASEAN Protocol on Enhanced Dispute Settlement Mechanism (the 2004 Protocol) ............... 256 6.3.1 Consultations ................................................................................................................................... 257 6.3.2 The Panel Process ........................................................................................................................... 260 6.4 Appeal procedure ................................................................................................................................... 267 6.4.1 Appeal review process .................................................................................................................... 269 6.4.2 Adoption of appellate review report ............................................................................................. 271 6.5 Transparency .......................................................................................................................................... 272 6.5.1 Written submissions ....................................................................................................................... 273 6.5.2 Public meetings ............................................................................................................................... 275 6.5.3 Amicus Curiae ................................................................................................................................. 276 6.6 Implementation....................................................................................................................................... 278 6.6.1 The surveillance of implementation of findings and recommendations..................................... 278 6.6.2 Compensation and the suspension of concessions ........................................................................ 279 6.6.3 Arbitration ...................................................................................................................................... 281 6.6.4 Surveillance ..................................................................................................................................... 281 6.6.5 Fund/Cost ........................................................................................................................................ 282 6.6.6 Time Frame ..................................................................................................................................... 283 6.6.8 The independence of the system .................................................................................................... 284 6.7 Conclusion............................................................................................................................................... 285 CHAPTER 7 – CONCLUSION ............................................................................ 287 APPENDIX I ........................................................................................................ 301 APPENDIX II ....................................................................................................... 308 APPENDIX III ...................................................................................................... 318 VIII
BIBLIOGRAPHIES ............................................................................................. 335 IX
Figures Figure 1: ASEAN Organization Structure ----------------------------------------------- 23 Figure 2: ASEAN Secretariat Organization Structure --------------------------------- 29 Flowchart Flowchart Dispute Settlement Mechanism in ASEAN --------------------------------247 Appendices Appendix I: The Bali Concord II - -------------------------------------------------------- 301 Appendix II: The 1996 Protocol ----------------------------------------------------------- 308 Appendix III: The 2004 Protocol ---------------------------------------------------------- 318 X
List of selected abbreviations AC ASEAN Community ACB ASEAN Compliance Board ACMB ASEAN Compliance Monitoring Body ACP African Caribbean Pacific ACT ASEAN Consultative to Solve Trade and Investment issues AD/CVD Anti Dumping/Countervailing Duty ADF ASEAN Development Fund AEC ASEAN Economic Community AEM ASEAN Economic Ministers AFAS ASEAN Framework Agreement on Services AFMM ASEAN Finance Ministerial Meeting AFTA ASEAN Free Trade Area AHG ASEAN Head Government AIA ASEAN Investment Area AIC ASEAN Industrial Complementation Scheme AICO ASEAN Industrial Cooperation Scheme AIJV ASEAN Industrial Joint Venture AIP ASEAN Industrial Project AMM ASEAN Ministerial Meeting ANZERTA Australia and New Zealand Economic Relations APT ASEAN Plus Three ARF ASEAN Regional Forum ASA Association for Southeast Asia ASC ASEAN Standing Committee ASC ASEAN Security Community ASCC ASEAN Social Cultural Community ASFOM ASEAN Senior Finance Official Meeting BBC Brand to Brand Complementation CEP Closer Economic Partnership CEPT Common Effective Preferential Tariff Scheme CFI Court of First Instance CFSP Common Foreign and Security Policy CLMV Cambodia, Laos, Myanmar and Vietnam CMG Common Market Group DSB Dispute Settlement Body DSU Dispute Settlement Understanding/Understanding on Rules & Procedures Governing the Settlement of Dispute EC European Community ECC Extraordinary Challenge Committee ECJ European Court of Justice ECSC European Coal and Steel Community EEC European Economic Community EMU Economic and Monetary Union XI
EU European Union EURATOM European Atomic Energy Community FTAA Free Trade Area of America GATS General Agreement on Trade and Services GATT General Agreement on Tariffs and Trade HLTF High Level Task Force HPA Hanoi Plan of Action IAI Initiative for ASEAN Integration ICJ International Court of Justice ICSID International Centre fore the Settlement of Investment Dispute ITO International Trade Organization JHA Justice and Home Affairs MAPHILINDO Malaya, Philippines and Indonesia MERCOSUR Mercado Comun de Sur/Common Market of the Southern Cone MFN Most Favoured Nation NAFTA North American Free Trade Agreement NGOs Non-government Organization OECD Organization for Economic Cooperation and Development PTAs Preferential Trading Arrangement RIA Roadmap for the Integration of ASEAN SEATO South East Asia Treaty Organization SEOM Senior Economic Officials Meeting SOM Senior Official Meeting TAC Treaty of Amity and Cooperation UNCITRAL United Nations Commission on International Trade Law VAP Vientiane Action Program WTO World Trade Organization XII
Table of cases A. The European Union C-387/97, Court of Justice of the EC, (4 July 2000) (Directives 75/442/EEC) C-394/96 [1998] ECR I-4185 (Brown v Rentokil) Case 106/77, Amministrazione Delle Finanze Dello Stato v Simmenthal SPA, [1978] ECR 629; [1978] 3 CMLR 263 Case 141/78 France v United Kingdom [1979] ECR 2923 Case 25/62, Plaumann v Commission [1963] ECR 106 Case 6/64 (1964) European Court Reports (ECR) 585 at 593 Keck and Mithouard case, Joined cases C-267/91 and C-268//91 [1993] ECR I-6097 Larsson v Fotex Supermarked, case C-400/95 [1997] ECR I-2757 Merck and Others v Primecrown and Others and Beecham and Europharm, joined cases C- 267/95 and C-268/95 [1996] ECR I-6285 Merck v Stephar and Exler, case 187/80 [1981] ECR 2063 B. GATT/WTO Panel Report, European Communities – Measures Concerning Meat and Meat Products (Hormones), WT/DS26/R/USA, 18 August 1997; Appellate Body Report, WTO Doc. WT/DS26/AB/R, WT/DS48/AB/R, adopted 13 February 1998; Arbitration Art. 21.3 (c) WT/DS26/15, WT/DS48/13, 29 May 1998; Recourse to Art. 22.6 Arbitration Report, WTO Doc. WT/DS26/ARB adopted, 12 July 1999 Brazil-Measures Affecting Patent Protection, WT/DS199/4, 19 July 2001 European Communities- Regime for the Importation, Sale and Distribution of Bananas, WTO Panel Report, WT/DS27/R/ECU (22 May 1997);Appellate Body Report, WT/DS27/AB/R, 9 Sept 1997; Arbitration Art 21.3 (c), WT/DS27/15, 7 January 1998; Arbitration Art 21.5, WT/DS27/RW/EEC and Corr 1, 12 April 1999; Recourse to Arbitration by the European Communities under Art.22.6, WTO Doc. WT/DS27/ARB, 9 April 1999 European Communities-Measures Affecting Asbestos and Asbestos-Containing Products, Panel Report, WT/DS135/R, 18 Sep 2000, Appellate Body Report, WTO Doc. WT/DS135/AB/R, 12 March 2001 European Communities-Trade Description of Sardines, Panel Report, WTO Doc. WT/DS231/R, 29 May 2002, Report of the Appellate Body, WTO Doc. WT/DS231/AB/R, 26 September 2002 Helms-Burton Case, The US-The Cuban Liberty and Democratic Solidarity Act, WT/DS38/2/Corr.1 (Oct.14, 1996); the Helms-Burton Act or Cuban Liberty and Democratic Solidarity Act of 1996, Pub.L.No.104-14, 110 Stat. 785 (1996) XIII
Japan-Taxes on Alcoholic Beverages, Appellate Body Report, WTO Doc. WT/DS8, 10, 11/AB/R, 4 October 1996 Korea – Definitive Safeguard Measure on Import of Certain Dairy Products, Panel Report, WTO Doc. WT/DS98/1 (21 June 1999); Appellate Body Report, WT/DS98/R (14 December 1999) Panel report, Korea-Taxes on Alcoholic Beverages, Panel Report WT/DS75/R, WT/DS84/R, adopted 17 September 1998, as modified by the Appellate Body Report, WT/DS75/AB/R, WT/DS84/AB/R, 18 Jan 1999 The Australian Subsidy case (complaint by Chile), Report adopted by the CONTRACTING PARTIES, Australia-Subsidy on Ammonium Sulphate (Apr 3, 1950) GATT B.I.S.D (2d Supp, 188 (1952) The Brazil measures affecting desiccated coconut- Report of the Appellate Body, WT/DS22/AB/R, 21 Feb 1997 The US-Final Dumping Determination on Softwood Lumber from Canada, WTO Doc. WT/DS264/R, 22 March 2004 (Report of the Panel), adopted as modified by the Appellate Body Aug 31, 2004; Arbitration Art 21.5, WTO Doc. WT/DS277/RW, 15 November 2005 United States-Standards for Reformulated and Conventional Gasoline, the WTO Panel Report WT/DS2/R, 29 January 1996; Appellate Body Report, WT/DS2/AB/R, 29 April 1996 United States-Anti Dumping Duty on DRAMs of One Megabit or Above From Korea, WTO Doc. WT/DS99/R (29 January 1999); WTO Article 21.5 Panel Report, US- DRAMs, Recourse to Art 21.5 DSU, WT/DS99/RW (7 November 2000) US-Shrimp/Turtle, United States- Import Prohibition of Certain Shrimp and Shrimp Products, WT/DS58/R; WTO Panel Report, US-Shrimp/Turtle, WT/DS58/AB/RW (15 may 1998); WTO Appellate Body Report, US-Shrimp/Turtle, WT/DS58/AB/R (6 November 1998); WTO Article 21.5 Panel Report, US – Shrimp/Turtle Recourse to Article 21.5 of the DSU by Malaysia, WT/DS58/RW (15 June 2001); WTO Article 21.5 Appellate Body Report, US – Shrimp/Turtle Recourse to Article 21.5 of the DSU by Malaysia, WT/DS58/RW (21 November 2001) WTO Panel Report, United States-Imposition of Countervailing Duties on Certain Hot- Rolled Lead and Bismuth Carbon Steel Products Originating in the United Kingdom, WT/DS138/R (23 December 1999); (WT/DS138/R/Corr.2); WTO Appellate Body Report, US-Lead Bismuth WT/DS138/AB/R (10 May 2000) WTO Panel Report, Indonesia-Certain Measures Affecting the Automobile Industry, WT/DS54/R, WT/DS55/R, WT/DS59/R, WT/DS64/R, (2 July 1998) XIV
Malaysia and Singapore, WTO Documents: WT/DS1/1, request for consultation, 10 January 1995 C. NAFTA In re High Fructose Corn Syrup from U.S.A., Mex-USA-98-1904-01 (August 3, 2001) available at http://www.nafta-sec-alena.org/images/pdf/ma98010e.pdf Cross-Border Trucking Services (US v. Mex), Arbitral Panel Established Pursuant to Chapter 20 of the NAFTA, No. USA-Mex-98-2008-01 (2001),
ASEAN Time Lines 1967 : ASEAN was established by the ASEAN Declaration 1967 : The 1st ASEAN Summit (ASEAN signed the Bali Concord I, the Treaty of 1976 Amity and Cooperation in Southeast Asia/TAC, and established the Secretariat) 1977 : ASEAN issued the ASEAN Preferential Trade Arrangements (PTAs) 1984 : Brunei Darussalam is formally admitted as the ASEAN Member 1992 : ASEAN formally agreed to establish AFTA 1995 : The signing of ASEAN Framework Agreement on Services (AFAS) 1995 : Viet Nam was admitted as a member of ASEAN 1996 : The ASEAN leaders signed the ASEAN Industrial Cooperation Scheme (AICO) and the ASEAN Protocol on Dispute Settlement Mechanism (the ASEAN DSM) 1997 : ASEAN leaders adopted the ASEAN Vision 2020 1997 : Laos and Myanmar were admitted as members of ASEAN 1998 : ASEAN adopted the ASEAN Investment Area (AIA) 1997-1999 : Asian financial crisis 1999 : The ASEAN leaders adopted the Hanoi Plan of Action (HPA) (1999-2004) 1999 : Cambodia was admitted as a member of ASEAN 2000 : The Initiatives for ASEAN Integration (IAI) 2003 : The Roadmap for Integration of ASEAN (RIA) : The 9th ASEAN Summit (the Bali Concord II) 2003 The ASEAN Leaders agreed to establish ASEAN Community (AC) comprises of ASEAN Security Community (ASC), ASEAN Economic Community (AEC) and the ASEAN Socio-Cultural Community (ASCC) by the year 2020 2004 : ASEAN adopted the Vientiane Action Programme (VAP/2004-2008) 2004 : ASEAN signed the ASEAN Protocol on Enhanced Dispute Settlement Mechanism (the 2004 Protocol) XVI
Table of Treaties and Declarations Treaty of Rome establishing the European Economic Community, 25 March 1957, 298 UNTS 11, < http://europa.eu.int/abc/obj/treaties/en/entoc05.htm > Treaty establishing the European Atomic Energy Community, 25 March 1957, 298 UNTS 167, < http://europa.eu.int/abc/obj/treaties/en/entoc38.htm> Treaty of Paris establishing the ECSC, 18 April 1951, 261 UNTS 140; Treaty on EU, done at Maastricht February 7, 1992 and entered into force November 1, 1993, 31 I L M 247 (1992), commonly as the Maastricht Treaty or Treaty on European Union, < http://europa.eu.int/en/record/mt/top.html> GATT preamble, < http://www.wto.org/english/docs_e/legal_e/gatt47_01_e.htm > Marakesh Agreement establishing the WTO, 15 April 1994, < http://www.wto.org/english/docs_e/legal_e/04-wto.doc DSU Review: Decision on the Application and Review of the Understanding on Rules and Procedures Governing the Settlement of Disputes, Apr. 15, 1994, 33 I.L.M.1125,1259 or DSU Review: Ministerial Declaration (Doha Declarations) of 2001, paragraph 30 (dispute settlement), http://www.wto.org/english/thewto_e/minist_e/min01_e/mindecl_e.htm#dispute NAFTA Documents relating to Dispute Settlement Procedures, December 17, 1992, at 32 ILM 289 (1993) (preamble to chapter 10), 32 ILM 605 (1993) (chapter 10 to Errata table), reprinted in Ralp H Folson, Michael W Gordon and John A Spanogle, Handbook of NAFTA Dispute Settlement, (1998) North American Agreement on Environment Cooperation, Sept 14, 1993, Can-Mex-US, 32 I.L.M. 1480 North American Agreement on Labor Cooperation, Sept 14, 1993, Can-Mex-US, 39 I.L.M 1499 ASEAN Declaration 1967, text at http://www.aseansec.org/1212.htm Treaty of Amity and Cooperation in South East Asia (TAC), signed at the Bali Conference, 1st ASEAN Summit, February 24, 1976, see http://www.aseansec.org/1654.htm XVII
Declaration of ASEAN Concord (Bali Concord I), done at Bali, 24 February 1976, see http://www.aseansec.org/1216.htm Declaration of ASEAN Concord II (Bali Concord II), done at Bali, 10 October 2003 see http://www.aseansec.org/15160.htm Agreement between the Government of Indonesia and ASEAN Relating to the Privileges and Immunities of the ASEAN Secretariat, 20 January 1979, at http://www.aseansec.org/1268.htm Singapore Declaration of 1992, Jan 28, 1992, see http://www.aseansec.org/1396.htm or 31 I.L.M 498 (1992) The Treaty of Asuncion, Mar. 26, 1991, art 1, (1991) 30 International Legal Materials 1041 Additional Protocol to the Treaty of Asuncion on the Institutional Structure of MERCOSUR (“Protocol of Ouro Preto”), date of signature, 17 December 1994, entry into force, 15 December 1995, see, (1995) 34 International Legal Materials 1244. The Olivos Protocol for the Settlement of Disputes in MERCOSUR, done February 18, 2002, 42 I.L.M.2 (2003) The Brasilia Protocol for the Settlement of Disputes, 36 I.L.M. 691 (1997 Protocol Colonia and Buenos Aires
INTRODUCTION FORMULATION OF THE PROBLEM The late twentieth century saw a new wave of regionalism sweep the world, as international trade moved from a political multi-polar system based on the nation-state to a system featuring unified regional trading regimes as evidenced in the formation of new trading blocs around globe, such as the European Union (the EU), the North American Free Trade Area (NAFTA), the Mercado Comun del Sur (MERCOSUR), and the Association of South East Asian Nations (ASEAN). This shift followed on from the development of the multilateral trading system beginning in the years following World War II in the form of the General Agreement on Tariffs and Trade (GATT) and culminating in the agreement to establish the World Trade Organization (the WTO) in 1995. But multilateralism has not worked entirely as anticipated, and increased membership and ‘consensus’ decision-making has slowed progress and stalled the liberalisation process. Thus, many states begin to believe that by entering into regional trade blocs as well as international trade agreements states would be able to increase their competitive advantages as well as their internal and international market share. While the merits of bilateral and regional trade are still being debated, it is clear that these agreements share similar objectives to that of the multilateral system of each other, namely to raise living standards through expanding production and trade in goods and services. An inevitable feature of increased cooperation through bilateral, regional and international arrangements is the emergence of disputes over the interpretation and implementation of the agreed upon commitments. In particular, disputes have arisen due to conflicting interests, needs, or opinions of participating states. Accordingly, reliable mechanisms for the settlement of trade related disputes have become necessary to ensure the effective and continued functioning of these arrangements. Over the years these dispute settlement mechanisms have evolved from the relatively simple, diplomacy based structures called for in the GATT which consisted of a mere two short paragraphs of treaty 1