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Cottier, Thomas --- "The Legitimacy of WTO" [2009] ELECD 384; in Yueh, Linda (ed), "The Law and Economics of Globalisation" (Edward Elgar Publishing, 2009)

Book Title: The Law and Economics of Globalisation

Editor(s): Yueh, Linda

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781845421953

Section: Chapter 2

Section Title: The Legitimacy of WTO

Author(s): Cottier, Thomas

Number of pages: 38

Extract:

2. The legitimacy of WTO law
Thomas Cottier

INTRODUCTION
The eighth General Agreement on Tariffs and Trade (GATT) cycle of
Multilateral Trade Negotiations (Uruguay Round 1986­1993) brought
about a substantial increase and expansion of multilateral rules and disci-
plines in international trade regulation. Beyond refining existing agreements,
new regulatory areas were added, in particular the General Agreement on
Trade in Services (GATS) and the Agreement on Trade-Related Aspects of
Intellectual Property Rights (TRIPS). A new framework agreement, estab-
lishing the World Trade Organization (WTO), created new legal foundations
under which Members, the Secretariat and dispute settlement have been
operating since 1995 (WTO 1999). Most importantly, the GATT dispute
settlement mechanism was strongly reinforced. For the first time in interna-
tional law, a two-tier system with the possibility of appealing the decision was
introduced, removing the requirement for a positive consensus of Members.
Incentives to comply were reinforced. Failing the implementation of rulings,
complainant Members are not only entitled to obtain compensation in terms
of market access rights; they are also entitled, subject to additional proceed-
ings, to suspend market access rights and thus exercise economic sanctions
within the multilateral framework of the WTO (Cottier and Oesch 2005:
143­194). These mechanisms both contain unilateral actions, but also rein-
force multilateralism as they enjoy the blessing of Members. These achieve-
ments of the Uruguay Round have contributed greatly to the overall and
impressive growth of world trade in the past decade. Millions of daily trans-
actions are based ...