ACCA Applied Skills · Corporate and Business Law (Global) · International trade, international legal regulation and conflict of laws
Freeland, a WTO member, imposes a ban on imports of a product from Eastland, also a WTO member. Eastland believes the ban breaches WTO rules. What is the correct first step under the WTO dispute settlement system?
Eastland should first request consultations with Freeland. If those fail to settle the dispute, Eastland may ask the WTO to establish a panel to rule on the matter. Only member states may bring cases, and the remedy is compliance rather than damages.
- AEastland must bring a claim in the national courts of Freeland
- BEastland must request consultations with Freeland, and if these fail it may ask for a panel to be establishedCorrect
- CEastland's exporters must apply directly to the WTO Secretariat for damages
Explanation
Dispute settlement begins with a request for consultations between the member states. If these do not resolve the matter, the complaining member may ask for a panel, and the panel's report can be appealed. Private exporters have no direct standing, and the WTO does not award damages, so the national court and damages options are wrong.
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