Informal Dispute Resolution in Preferential Trade Agreements

Abstract

Noting that very few disputes have been adjudicated, many scholars have expressed doubts whether the dispute settlement mechanisms of preferential trade agreements (PTAs) will ever be used. This article argues that looking only at the number of formal disputes (i.e. disputes that lead to the adoption of a decision by third party adjudicators) tells an incomplete story about dispute resolution in PTAs (i.e. resolution of disputed issues). Focusing on the PTAs concluded by the European Union (EU), this article contends that the framework established by the PTAs can have a complementary role to litigation. Like the committees at the World Trade Organization, the committees established by the PTAs can foster dialogue and find technical solutions to disputed issues. By looking at the text of the EU PTAs as well as at available documents on their implementation, this article shows how these committees can tackle disputes.