1. © WTO - OMC 2010 edna.ramirezrobles@wto.org 1 The WTO Influence in EU FTAs, through the dispute settlement lens CLEER, The Hague, November 2010 Edna Ramirez-Robles World Trade Organization, Legal Affairs Division

2. © WTO - OMC 2010 edna.ramirezrobles@wto.org 2 Dispute Settlement Mechanisms (DSM) WTO vs. EU FTAs POLITICAL Pre WTO GATT (1947–1995) Dynamic EU FTAs (1963–2010) QUASI-ADJUDICATIVE Post WTO DSU (1995–2010) Static EU FTAs (2000-2010)

3. © WTO - OMC 2010 edna.ramirezrobles@wto.org 3 DSM Pre & Post WTO Post-WTO (DSU) Consultations Final decisions Negative consensus Legal stages Compulsory Jurisdiction Pre-WTO (GATT) No final decisions Consensus No legal stages

4. © WTO - OMC 2010 edna.ramirezrobles@wto.org 4 EU-FTAs (dynamic) Ankara Agreement (1963) CU Turkey (1995) European Economic Area (EFTA-EU) Europe Agreements Acceding EU Members EUROMED Neighbourhood (ENP) Lomé Convention (1975) Cotonou Agreement (2000-2007) Economic Partnership Agreements (EPAs)

5. © WTO - OMC 2010 edna.ramirezrobles@wto.org 5 DSM EU-FTAs (dynamic) No final decisions Consensus No legal stages Unilateral decisions

6. © WTO - OMC 2010 edna.ramirezrobles@wto.org 6 EU-FTAs (static) IN FORCE South Africa Mexico Chile CONCLUDED Central America Colombia Peru Korea IN NEGOTIATION India MERCOSUR ASEAN Gulf Cooperation Council (GCC) Canada Singapore Ukraine

7. © WTO - OMC 2010 edna.ramirezrobles@wto.org 7 DSM EU-FTAs (static) Consultations Panel Binding Decisions Legal stages

8. © WTO - OMC 2010 edna.ramirezrobles@wto.org 8 DSU elements missing in DSM EU FTAs (static) WTO (DSU) Consultations Panel Legal stages Final Decisions Negative Consensus Compulsory Jurisdiction EU FTAs Consultations Panel Legal stages Binding Decisions

9. © WTO - OMC 2010 edna.ramirezrobles@wto.org 9 DS EU Experience (WTO & FTAs) EU TRADE PARTNERWTO Before/After FTAsFTAs South Africa 0 / 0 0 Mexico 3 / 10 Chile 4 / 20 Central America 1 / 00 Colombia 0 / 00 Peru 2 / 00 Korea 7 / 00 TOTAL 16 / 30

10. © WTO - OMC 2010 edna.ramirezrobles@wto.org 10 Reasons for the lack of use of DSM in EU FTAs (static) Political Economical Legal Other

11. © WTO - OMC 2010 edna.ramirezrobles@wto.org 11 Elements that Limit the Effectiveness of DSM in EU FTAs Blockage of panel establishment No binding awards FTAs obligations excluded from DS Few obligations agreed in FTAs Unilateral Sanctions Double forum Several political stages prior to panel stage No retaliation measures

12. © WTO - OMC 2010 edna.ramirezrobles@wto.org 12 CONCLUDING REMARKS The multilateral trade system has influenced the EU trade regime with third countries from the GATT times DSM in EU static FTAs may look strong but still have weak elements that lead to: a) Disputes politically settle b) DSM difficult to put in practice c) Interpretation conflicts Governments shall increase the dispute settlement mechanisms importance when negotiating FTAs DSU will remain as the main forum for trade disputes