*EPF215 05/13/2003
Fact Sheet: USTR Sets Out Procedure in WTO for Biotech Challenge
(Dispute-settlement case against EU expected to take 12-18 months) (280)

Following is a fact sheet from the Office of the U.S. Trade Representative (USTR) describing the procedure for a U.S. challenge in the World Trade Organization (WTO) to the European Union (EU) moratorium on food derived from biotechnology:

(begin fact sheet)

Procedure and Timeline for a WTO Case

Once the United States files a WTO case against the European Union on the EU's moratorium on genetically modified foods, the WTO follows a highly structured procedure. Typically a case takes between 12 and 18 months.

This is the WTO's procedure:

-- Consultations: The WTO rules first require a 60-day period of consultations among the parties to see if the case can be settled.

-- Panel: After 60 days, if the negotiations are unsuccessful, the WTO forms a three-person panel. Within several months, the U.S. and the EU will present their arguments before the panelists, who will adjudicate the dispute. Typically, the panel decides within nine months of the date it was formed.

-- Appeal: The panel report could be appealed to the WTO Appellate Body, which is composed of permanent members, which would return its report within three months. There is no appeal from the Appellate Body.

-- Compliance: Countries have a reasonable period of time, generally 6-15 months, to comply with the final ruling. If there is disagreement over whether a country has complied within that time, WTO rules allow several additional months for arbitration. At the end of that time, if the country has not come into compliance, the other countries may withdraw trade concessions by imposing retaliatory tariffs.

(end fact sheet)

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

Return to Public File Main Page

Return to Public Table of Contents