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REPERTORY OF APPELLATE BODY REPORTS

Right to Bring Claims — Legal Interest


ON THIS PAGE:

EC — Bananas III, para. 132
EC — Bananas III, para. 135
EC — Bananas III, paras. 136-138
Mexico — Corn Syrup (Article 21.5 — US), paras. 73-74
US — Corrosion-Resistant Steel Sunset Review, para. 86
US — Corrosion-Resistant Steel Sunset Review, para. 89


R.5.1 EC — Bananas III, para. 132     back to top
(WT/DS27/AB/R)

We agree with the Panel that “neither Article 3.3 nor 3.7 of the DSU nor any other provision of the DSU contain any explicit requirement that a Member must have a ‘legal interest’ as a prerequisite for requesting a panel”. We do not accept that the need for a “legal interest” is implied in the DSU or in any other provision of the WTO Agreement. …

 
R.5.2 EC — Bananas III,
para. 135     back to top
(WT/DS27/AB/R)

… we believe that a Member has broad discretion in deciding whether to bring a case against another Member under the DSU. The language of Article XXIII:1 of the GATT 1994 and of Article 3.7 of the DSU suggests, furthermore, that a Member is expected to be largely self-regulating in deciding whether any such action would be “fruitful”.

 
R.5.3 EC — Bananas III,
paras. 136-138     back to top
(WT/DS27/AB/R)

We are satisfied that the United States was justified in bringing its claims under the GATT 1994 in this case. The United States is a producer of bananas, and a potential export interest by the United States cannot be excluded. The internal market of the United States for bananas could be affected by the EC banana regime, in particular, by the effects of that regime on world supplies and world prices of bananas. We also agree with the Panel’s statement that:

… with the increased interdependence of the global economy, … Members have a greater stake in enforcing WTO rules than in the past since any deviation from the negotiated balance of rights and obligations is more likely than ever to affect them, directly or indirectly.

We note, too, that there is no challenge here to the standing of the United States under the GATS, and that the claims under the GATS and the GATT 1994 relating to the EC import licensing regime are inextricably interwoven in this case.

Taken together, these reasons are sufficient justification for the United States to have brought its claims against the EC banana import regime under the GATT 1994. This does not mean, though, that one or more of the factors we have noted in this case would necessarily be dispositive in another case. …

 
R.5.4 Mexico — Corn Syrup (Article 21.5 — US),
paras. 73-74
(WT/DS132/AB/RW)     back to top

… [the first sentence of Article 3.7 of the DSU] reflects a basic principle that Members should have recourse to WTO dispute settlement in good faith, and not frivolously set in motion the procedures contemplated in the DSU. …

Given the “largely self-regulating” nature of the requirement in the first sentence of Article 3.7, panels and the Appellate Body must presume, whenever a Member submits a request for establishment of a panel, that such Member does so in good faith, having duly exercised its judgement as to whether recourse to that panel would be “fruitful”. Article 3.7 neither requires nor authorizes a panel to look behind that Member’s decision and to question its exercise of judgement. Therefore, the Panel was not obliged to consider this issue on its own motion.

 
R.5.5 US — Corrosion-Resistant Steel Sunset Review,
para. 86
(WT/DS244/AB/R)     back to top

… a measure attributable to a Member may be submitted to dispute settlement provided only that another Member has taken the view, in good faith, that the measure nullifies or impairs benefits accruing to it under the Anti-Dumping Agreement. …

 
R.5.6 US — Corrosion-Resistant Steel Sunset Review,
para. 89
(WT/DS244/AB/R)     back to top

We observe, too, that allowing measures to be the subject of dispute settlement proceedings, whether or not they are of a mandatory character, is consistent with the comprehensive nature of the right of Members to resort to dispute settlement to “preserve [their] rights and obligations … under the covered agreements, and to clarify the existing provisions of those agreements”. As long as a Member respects the principles set forth in Articles 3.7 and 3.10 of the DSU, namely, to exercise their “judgement as to whether action under these procedures would be fruitful” and to engage in dispute settlement in good faith, then that Member is entitled to request a panel to examine measures that the Member considers nullify or impair its benefits. …

 


The texts reproduced here do not have the legal standing of the original documents which are entrusted and kept at the WTO Secretariat in Geneva.

 
   
 

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