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ACCA Applied Skills · Corporate and Business Law (Global) · International trade, international legal regulation and conflict of laws

A WTO member believes another member's measure breaches WTO rules. Consultations fail, and a panel finds against the respondent, which does not appeal. The respondent then fails to comply within the reasonable period set. What may the complaining member then seek, with authorisation from the Dispute Settlement Body?

The complainant may seek compensation or, if that is not agreed, authorisation from the Dispute Settlement Body to suspend concessions or obligations against the non-complying member. The WTO has no power to fine or expel, and reports are not enforced directly in national courts.

  1. ACompensation or, failing that, suspension of concessions against the respondentCorrect
  2. BExpulsion of the respondent from the WTO by the complainant
  3. CDirect enforcement of the panel report in the respondent's national courts
  4. DAn unlimited fine payable to the WTO

Explanation

If a member does not comply, the complainant may seek negotiated compensation, and if none is agreed may request authorisation to suspend concessions or obligations towards the respondent. The WTO cannot fine members, the complainant cannot expel anyone, and panel reports are not directly enforced by national courts.

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