WTO and its dispute settlement mechanism

Abstract

In this chapter, the author recounts his experience of dealing with some of India’s early disputes at the WTO and the importance of these disputes in WTO jurisprudence. This chapter focuses on five landmark WTO disputes in which India was a party, namely, EC—Bed Linen, India—Autos, US—Offset Act (Byrd Amendment), EC—Tariff Preferences and Turkey—Textiles. These disputes pertained to issues concerning trading in sectors that are crucial to India’s economy such as antidumping measures on India’s export of textiles and clothing, foreign investment in automobiles and removal of quantitative restrictions on nearly one-fourth of India’s tariff lines. The decisions contributed in the shaping of new jurisprudential concepts such as prohibition of ‘zeroing’ in dumping calculations, application of non-discrimination in the Enabling Clause, application of res judicata and judicial economy, etc., in WTO dispute settlement proceeding. The author also notes that that winning a WTO dispute case is only a part of the process, but the ultimate success depends on both law and diplomacy. This chapter also provides practical guidance for WTO members in regard to identification and preparation of claims at the time of panel request and other related matters.