Unilateral Measures and WTO Dispute Settlement: An EC Perspective

Abstract

This article explores the issue of unilateral measures in the field of international trade. The analysis focuses on the European Community (EC) Regulation adopted to counteract the delayed US compliance with the Dispute Settlement Body (DSB) recommendations in United States - 1916 Anti-Dumping Act. The Regulation is set within its context and its legality is examined under EC and World Trade Organization (WTO) law. The Regulation violates EC law with regard to the legal basis chosen, the content and context for its adoption. More controversially, it is submitted that the Regulation violates WTO rules and in particular those enshrined in the Dispute Settlement Understanding (DSU). Premised on these findings, the article concludes that both EC and WTO law limit the EC's discretion at the adoption of unilateral measures in the field of international trade and furnishes support to the general statement that, in its proper construction, the DSU precludes WTO Members from taking unilateral measures in their international trade relations.