DISPUTE SETTLEMENT IN WTO :

OVERVIEW & PROCEDURE

MATA KULIAH
PERDAGANGAN INTERNASIONAL
IRMA RACHMAWATI
 DISPUTE SETTLEMENT PROCEDURE

• One of the unique features of the WTO is its provision

relating to dispute settlement mechanism . In fact the power
to settle trade disputes is what is the difference between the
WTO and GATT .
• When a member files a complaint against another , the
dispute settlement body of the WTO steps in immediately .
• Trade disputes are settled according to the Understanding
on Rules and Procedures Governing the Settlement of
Disputes .
• The dispute settlement system of WTO is faster and
automatic and the decisions cannot be ignored or blocked
by members .
Cont..
• All the countries are bound to realign their
trade policies according to the WTO
guidelines or suffer financial penalties and
even trade sanctions Because of its ability to
penalize offending member nations ,the
WTO dispute settlement is the backbone of
the global trading system
 Quasi-judicial Nature
• Secured access
Overall aim:
• Detailed procedures
• to secure compliance
with the Agreements • Automaticity in the
proceedings
• Deadlines
• Possible appeal

4
 • Applies to all the WTO
multilateral agreements
(Appendix 1)
An integrated • A single set of rules for
all disputes (Art 23)
system: • Only a few special or
additional rules in some
CA (Appendix 2)

5
 Dispute Settlement in the WTO:

Main Features • Main characters

• compulsory jurisdiction • Parties to the dispute: WTO

• detailed procedures and Members only

deadlines • Dispute Settlement Body (all

• “complainant-driven” the Members)

• “quasi-judicial” • Panel ( 3 or 5 panelists)

• “automaticity” • Appellate Body (7 persons)

• WTO & AB Secretariats

 Functions and composition of
the DSB
• The General Council discharges its responsibilities under
the DSU through the DSB (Article IV:3 of the WTO
Agreement). Like the General Council, the DSB is
composed of representatives of all WTO Members.
These are governmental representatives, in most cases
diplomatic delegates who reside in Geneva (where the
WTO is based) and who belong to either the trade or the
foreign affairs ministry of the WTO Member they
represent. As civil servants, they receive instructions from
their capitals on the positions to take and the statements to
make in the DSB. As such, the DSB is a political body.
• The DSB is responsible for administering the DSU, i.e.
for overseeing the entire dispute settlement process.
• The DSB has the authority to establish panels, adopt panel
and Appellate Body reports, maintain surveillance of
implementation of rulings and recommendations and
authorize the suspension of obligations under the covered
agreements (Article 2.1 of the DSU ). In less technical
terms, the DSB is responsible for the referral of a dispute
to adjudication (establishing a panel).

• The DSB meets as often as is necessary to adhere to the

time-frame In practice, the DSB usually has one regular
meeting per month. When a Member so requests, the
Director-General convenes additional special meetings.
The staff of the WTO Secretariat provides administrative
support for the DSB.
 How the Dispute
Settlement System works

The Dispute Settlement Body,

All Members

Establishes No appeal? DSB adopts

DSB adopts the reports
the report

Panel Report Appellate Body

9
 World Trade Organization (WTO):
Resolution of Trade Disputes
š1ST STAGE: Bilateral consultations within 30 days of
request by another member. Can be brought to WTO
Director-General. If failed after 60 days from request for
consultation
š2ND STAGE: Complainant requests DSB to establish a
panel to examine the case
š3RD STAGE: Panel's final reports are given to parties
within 6 months or 3 months in urgency such as
perishable goods. Panel reports are adopted by DSB
within 60 days of issuance, unless one party notifies its
decision to appeal or parties agree not to adopt report
š4TH STAGE: Either party appeals to a standing
Appellate Body
 Cont……
š5TH STAGE: Appellate Body decision: Generally
within 60 days, but in no case longer than 90 days.
Reports of Appellate Body are accepted by DSB in 30
days of issuance.
š6TH STAGE: At a DSB meeting, party concerned
presents intentions on how to implement the adopted
recommendations and rulings of DSB
š7TH STAGE: If party concerned fails to comply,
obligated to enter into negotiation with complainant to
determine mutually acceptable compensation
 Cont….
š8TH STAGE: If no satisfactory compensation is agreed,
complainant requests authorization from DSB to
suspend concessions or obligations to the other party

š9TH STAGE: DSB should grant this authorization,

unless DSB decides by consensus to reject the request.

š10TH STAGE: DSB continues to monitor

implementation of adopted recommendations

13
 Stages of Dispute Settlement
Consultation Stage:
Upto 60 Days. To see if dispute can be
avoided

Appt of Panel:
Upto 45 days + 6 mths for Panel to
conclude

Appeals from Panel to

Appellate Body.:
To be decided within 60 days; max 90 days

DSB to accept AB report

within 30 days. Rejection possible
only by consensus
 After DSB Adoption……..
• Losing Party to bring its policy in line with the decision.
‘Prompt compliance’ reqd. Party to tell DSB its intention of
compliance within 30 days. If immediate compliance
impractical, DSB will give Member ‘reasonable time
period’ to do so.
• If dispute whether measures adopted comply with DSB
ruling, a ‘Compliance Panel’ will hear the matter & rule
within 90 days.
• Failure to act Adequate Compensation to Complaining
party/parties
• Amount of Compensation through negotiations
• If no satisfactory agreement, complaining side may seek
DSB’s permission for ltd trade sanctions.
• Trade sanctions: Suspension of concessions or obligations.
In principle, in the same sector as the dispute. If this is not
‘effective’ or ‘practical’, action under another agreement.
 Dispute Settlement in the WTO:
Objectives

To secure a “positive solution” to the dispute.

(Art. 3.7 DSU)

• Preferred outcome:
– To reach a mutually agreed solution
• If not,
– Panel Proceeding ….
– [….and AB review.]
• And then,
– Implementation, or ….
– Retaliatory trade sanctions may be imposed
 Consultations

Panel
Good
Offices,
Conciliat
ion
Mediatio ,
Arbitratio
n,
n Appeal

Adoption

Implementation
Dispute Settlement in
the WTO:
(Article 17 DSU)
• WHAT ? appeals limited to “issues of law and
legal interpretations” developed by the panel,
including “cross-appeals”.

• WHO ? appeal only open to parties to the dispute.

• WHEN ? Appeal must be commenced no later

than 60 days after the Panel Report is circulated to
Members; takes 60-90 days.
 Dispute Settlement in the WTO:
Consultations
• Who?
– One or more Members (complainants)
against another Member (respondent)
– Possibility for third party Members to join
• Confidential process
• Minimum time limits for complainant

19
 Dispute Settlement in the WTO:
Panels
• Establishment of a • 6 months or 9 months to
panel: issuance of final report
Automatic
• Process confidential, report
public
• Composition
“well-qualified
government and/or non-
governmental
individuals”
 Dispute Settlement in the WTO:
Panel Procedures: deadlines

Composition of
a panel

Establishment
Final Report
of a panel max. 6 months
circulated

max. 9 months

21
 Dispute Settlement in the WTO:
Adoption of Panel Reports
Art. 16 DSU

• Panel reports not

considered for adoption
until 20 days after
circulation

• Adoption within 60 days

of circulation, unless
negative consensus….
… Except if
appealed
 Dispute Settlement in the WTO:
Appellate Body Members/ Appellate
Review
• A standing body of 7 • WTO dispute
Members settlement system
• Appointment by DSB innovation.Rules
applicable to Appellate
• 4-year term, renewable Review : Dispute Settlement
once Understanding
(Article 17; Article 16.4; Articles 1,
• Requirements 3, 18 and 19)

– authority and expertise in – Working Procedures for

international trade law Appellate Review
– Rules of Conduct
– “unaffiliated with any
government”
 Dispute Settlement in the WTO:
Appellate Procedure

• Notice of Appeal

• Written Submissions
60/90
days
• Oral Hearing

• Exchange of Views

• Circulation of the Report

Dispute Settlement in the WTO:
Appellate Body

25
 Dispute Settlement in the WTO:
Adoption by the DSB

• Adoption by the DSB of the Panel Report,

as upheld, modified or reversed, by the
Appellate Body Report

• Within 30 days circulation (60 days if no

appeal)

• Negative consensus
 Dispute Settlement in the WTO:
Implementation

• What if it cannot be implemented

immediately?
Determination of “reasonable period of time” for
implementation (Guideline: 15 months)
• Is it properly implemented?
If there is disagreement, refer to
compliance panel (original panel preferred)
under Article 21.5.
 Dispute Settlement in the WTO:
Surveillance and Implementation

• Surveillance by the DSB:

Status reports on implementation is reviewd,

• If Member fails to bring measure into conformity

within reasonable period of time, possibility of
temporary measures : compensation or
“suspension of concessions” (retaliation)
 Kasus tobacco

Latar Belakang
Sengketa dapat muncul ketika suatu negara menetapkan suatu kebijakan perdagangan
tertentu yang bertentangan dengan komitmennya di World Trade Organization (WTO), atau
mengambil kebijakan yang merugikan negara lain. (M. Hawin)

Sengketa antara Indonesia dan Amerika Serikat terkait dengan rokok kretek berawal dari
disahkannya Pasal 907 (1) Famil Smoking Prevention and Tobacco Control Act oleh
Presiden Obama pada tanggal 22 Juni 2009, dan diberlakukan pada bulan September 2009.

bertujuan untuk
Family Smoking Prevention menurunkan
AMERIKA tingkat perokok
& Tobacco Control Act
SERIKAT (disahkan Presiden Obama 22 Juni 2009 muda di
(AS) diberlakukan September 2009) kalangan
masyarakat AS

Melarang peredaran semua rokok yang mengandung

aroma dan rasa (flavored cigarettes), termasuk rokok
kretek, di Amerika Serikat. Namun, peraturan tersebut
tidak melarang rokok yang mengandung aroma dan
rasa menthol.
Dampak bagi Indonesia
Sebagai salah satu produsen rokok kretek terbesar di dunia, ekspor kretek
Indonesia mencapai US$ 500 juta atau sekitar Rp. 4,26 triliun/ tahun. Dari
total tersebut seperlimanya diekspor ke AS. (Siaran Pers Kemendagri, 21 September
2010)

Dengan aturan itu Indonesia kehilangan potensi pendapatan dari ekspor

rokok kretek sejak tahun 2009. Menurut data Kementerian Perdagangan,
ekspor produk "cigarettes ba --termasuk kretek-Indonesia ke AS yang
pada 2007 senilai 604.420 dolar AS turun menjadi 38.000 dolar AS pada
2009, saat regulasi teknis AS mulai diberlakukan. Volume ekspor rokok jenis
itu juga turun dari 30.196 kilogram pada 2007 menjadi 9.984 kg pada 2009.

Sementara tahun 2010 sama sekali tidak ada ekspor rokok jenis tersebut.
Indonesia kehilangan potensi ekspor sebesar US$ 200 juta setahun, serta
tertundanya rencana investasi produsen rokok kretek ind ke Amerika Latin
krn pintu masuk ekspor ke AS ditutup.
 lengthy Proposed to establish a
Indonesia Concultation Panel to WTO - Dispute
with WTO Settlement Body (DSB)

The National Treatment Obligation: Premise:

US violated the WTO
Every member country of WTO is obligated to provision on National
provide equal treatment on similar types of Treatment Obligation
product either manufactured domestically or as specified in article 2.1
imported from other member countries of the Technical Barrier to
the WTO. Trade (TBT) Agreement.
Penyelesaian Sengketa WTO
Penyelesaian sengketa WTO di atur di dalam Dispute Settlement Understanding
(DSU), dengan Dispute Settlement Body (DSB) sebagai lembaga penyelesaian
sengketa WTO. DSB memiliki kewenangan:
membentuk Panel
menerima laporan Panel
laporan dari Appellete Body (AB) yang merupakan lembaga banding dalam
penyelesaian sengketa WTO,
mengawasi implementasi putusan dan rekomendasi,
menguasakan penangguhan konsesi serta kewajiban-kewajiban lain dalam
perjanjian yang terkait.

Indonesia berargumen bahwa regulasi yang dibuat oleh Amerika Serikat merupakan
tindakan yang bersifat diskriminatif. Hal tsb dikarenakan, peraturan tersebut dibuat
tanpa disertai bukti ilmiah yang menyatakan bahwa rokok kretek lebih berbahaya
dibandingkan dengan rokok kretek. Maka pada tanggal 9 Juni 2010, Indonesia
meminta pembentukan panel kepada DSB WTO.
Pada intinya, Indonesia mengajukan dua gugatan utama yaitu:
1. Pasal 2.1 TBT Agreement, yaitu bahwa Amerika Serikat telah melakukan
diskriminasi.
2. Pasal 2.2 TBT Agreement, yaitu bahwa pelarangan rokok tersebut tidak perlu
dilakukan.
Pasal 2.1 TBT Agreement mengatur suatu regulasi teknis yang di buat oleh suatu negara, tidak boleh
memperlakukan produk domestik negara tersebut lebih menguntungkan dibandingkan dengan produk
impor sejenis.
Untuk menentukan apakah telah terjadi suatu pelanggaran terhadap Pasal 2.1 TBT Agreement, ada 3
elemen dalam Pasal tsb yang harus terpenuhi, yaitu:
1. Kebijakan tersebut merupakan suatu regulasi teknis
Tobacco Control Act memenuhi elemen ini, karena jelas disebutkan mengenai hal yang di atur
dalam aturan tsb, yaitu rokok. AS secara eksplisit menyebutkan karakteristik2 rokok yang di larang,
salah satunya adalah rokok kretek. Tobacco Control Act memerintah untuk melarang beredarnya
produk produk rokok yang mengandung berbagai karakteristik spt yang disebut dalam Tobacco
Control Act tersebut.
2. Bahwa yang menjadi sengketa antara produk impor dengan produk domestik, merupakan produk
yang “sejenis”
R k k k e ek k k men h l da a dika eg ikan ebagai d k ejeni ka ena eca a fi ik
kedua produk tersebut sama. Keduanya merupakan rokok yang dilinting dengan kertas dan
digunakan untuk menghisap tembakau. Aroma & rasa kedua jenis rokok tsb juga sama2 dapat
menimbulkan ketergantungan terhadap rokok. Klasifikasi tarif keduanya pun sama.
3. Bahwa produk impor diperlakukan kurang menguntungkan dibandingkan dengan produk
domestik yang “sejenis”
Dalam Tobacco Control Act, AS melarang peredaran rokok dgn aroma dan rasa tertentu yg
merupakan rokok yang diimpor oleh AS, termasuk rokok kretek yang diimpor dari Indonesia.
Sedangkan rokok menthol yg merupakan produk domestik Amerika Serikat tidak dilarang
peredarannya. AS menyatakan bahwa pelarangan tersebut bukan berdasarkan asal negara, namun
lebih kepada dampak yang ditimbulkan bagi generasi muda. Tetapi pada faktanya, efek yang
ditimbulkan dari rokok menthol dan rokok kretek adalah sama.
 2 Sept 2011
Panel WTO menemukan bahwa kebijakan AS tersebut tidak sesuai dengan ketentuan WTO, karena rokok
kretek dan rokok mentol adalah produk sejenis (like products), dan keduanya memiliki daya tarik yang sama
bagi kaum muda. Menurut WTO, kebijakan yang membedakan perlakuan terhadap dua produk sejenis,
merupakan tindakan yang tidak adil (less favourable).

5 Jan 2012

Pemerintah AS tidak puas terhadap keputusan panel melakukan banding ke Appellate Body (AB) WTO

4 April 2012
Hasil banding yang dikeluarkan AB menegaskan kembali bahwa:
1. keputusan panel sebelumnya adalah benar, dan pemerintah AS telah mengeluarkan kebijakan yang
tidak konsisten dengan ketentuan WTO.
2. AS terbukti melanggar ketentuan Pasal 2.12 TBT Agreement di mana AS tidak memberikan waktu yang
cukup (reasonable interval) antara sosialisasi kebijakan dan waktu penetapan kebijakan, yaitu
sekurang-kurangnya enam bulan, merujuk pada keputusan menteri-menteri di Doha.
3. AB menyatakan bahwa determinasi "produk serupa" seharusnya tidak diinterpretasikan berdasar
tujuan pengaturan dan isi regulasi, melainkan pada hubungan kompetitif produk berdasar analisis
tradisional keserupaan. Kriteria tradisional keserupaan yang dimaksud meliputi karakteristik fisik,
penggunaan akhir, selera dan kebiasaan konsumen, serta klasifikasi tarif.
Berdasarkan ketentuan DSU pasal 17 (14), keputusan AB akan diadopsi oleh DSB
setelah 30 hari dikeluarkannya putusan AB, yaitu Mei 2012.

Kini nasib ekspor kretek Indoensia bergantung pada lobi bilateral AS - Indonesia,
dengan batas waktu paling lama 6 bulan.
3 opsi yang mungkin dihasilkan:
1. AS merubah beleid pelarangan ekspor sesuai ketentuan WTO
2. AS tetap mempertahankan peraturannya
3. Indoensia mendapat kompensasi yang disepakati tanpa revisi beleid pelarangan
ekspor rokok.

Langkah diplomasi yang dapat dilakukan Indonesia setelah putusan AB keluar:

Jika AS tidak melaksanakan rekomendasi WTO, Indonesia akan meminta konsultasi bilateral
agar AS melaksanakan rekomendasi
Jika tidak juga digubris, sebagai salah satu langkah diplomasi perdagangan Indonesia dapat
melakukan retaliasi silang atau cross retaliation, yakni mengenakan pembatasan atau
pelarangan penjualan produk AS di Indonesia senilai kerugian akibat pelarangan
penjualan rokok beraroma asal Indonesia di AS (sekitar US$ 200 juta).

T j a I d e ia e gaj a a e e e WTO b a eiga a e d e AS,

melainkan untuk mengamankan akses pasar rokok kretek Indonesia di AS. Selain itu mencegah aturan yang diterapkan
Pemerintah AS ditiru oleh negara lain, termasuk negara- ega a j a e a a e e I d e ia.
(Imam Pambagyo, Dirjen Kerjasama Perdagangan Internasional)
 TUGAS
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