The WTO in 2017: Systemic Developments, Disputes and Review of the Appellate Body's and Panels' Reports

Abstract

This analytical but concise survey of WTO case law for 2017 is carried out within the framework of the PhD program in International Law and Economics of the PhD School of Bocconi University (Milan). Giorgio Sacerdoti, Emeritus Professor of International Law at Bocconi University and former Chairman of the WTO Appellate Body, has coordinated and supervised the individual comments of Appellate Body's and Panels' Reports. An abridged version of this review will be published in the 2018 Italian Yearbook of International Law as has been the case in the past years. The WTO system risks to be undermined by the direct challenge to its rules initiated by the Trump administration at the beginning of 2018 with the introduction of substantial anti-dumping duties on washers from Korea and solar panels from India, the announcement of safeguards based on the security exception of Article XXI GATT on steel and aluminium imports, and the restrictive measures on a variety of exports from China to the US. Apparently, the dispute settlement system is functioning well. Seventeen new disputes had been introduced through requests of consultations in 2017, bringing their total number to 535 from the establishment of the system. The Appellate Body issued five reports. Eleven panel reports were issued in 2017 (two of which in compliance proceedings under Article 21.5 DSU), six of which were not appealed. One arbitration award was issued under Article 21.3(c) DSU for the determination of the “reasonable period of time” to comply. The WTO dispute settlement system, however, has not remained unaffected by the above adverse political trend. While the US is challenging a key element of the system, namely the appointment process for replacing outgoing members of the Appellate Body, the other Members appear uncertain how to respond, inspired by the desire not to antagonise frontally the US at least at this stage.