EU Considering Enforcement Regulation Involving WTO Dispute Settlements

The European Council and the European Parliament agreed to a regulation amendment that would allow the European Union to “enforce its trade rights” if a trading partner blocks the World Trade Organization’s dispute settlement system. The revision, which must be approved by a “qualified majority” of member states, would allow the EU to impose “countermeasures” if a trade partner “imposes illegal trade measures and subsequently blocks the dispute settlement process,” the EU said Oct. 28.

The regulation would specifically address situations in which the EU “succeeds in obtaining a favourable ruling” from the WTO, but the “process is then blocked because the other party appeals a WTO panel report 'into the void' and does not agree to interim appeal arbitration,” the EU said. In those cases, the EU would be able to impose customs duties and restrictions on imports, exports and procurement with the other party.