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 “national 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’s conclusions (making some changes to the panel’s 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 (0 = start of case)
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
“60 days”
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
+2½ months
“30 days”
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 Dispute Settlement Body
+1 year, 1 month
21 February 1996
US appeals
+1 year, 3 months
“60 days”
29 April 1996
Appellate Body submits report
+1 year, 4 months
“30 days”
20 May 1996
Dispute Settlement Body adopts panel and appeal reports
+1 year, 10½ months
3 December 1996
US and Venezuela agree on what US should do (implementation
period is 15 months from 20 May)
+1 year, 11½ 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)