IIILack of Possible Compensation
As noted above, there is no requirement under the WTO for a “legal interest” or an “economic interest” for Members to invoke the DSU procedures for the settlement of any trade dispute. However, is the right to pursue a proceeding denied by the lack of any possible compensation?
In EC-Bananas (DS27),EC resorts to arbitration under Art. 22.6 of the DSU. And the Arbitrators note that, inter alia, EC contends that especially with respect to trade in goods the nullification or impairment suffered by the United States is negligible or nil since there is no actual trade and little prospect for potential trade in bananas between the United States and the EC. In this respect, the Arbitrators recall the EC''s argument in the original dispute that even if a Member not suffering nullification or impairment of WTO benefits in respect of bananas were allowed to raise a claim under the GATT, that Member would not have had an effective remedy under Art. 22 of the DSU. The Arbitrators also note the complainants'' argument in the original dispute that Art. 3.8 of the DSU presupposes a finding of infringement prior to a consideration of the nullification or impairment issue, suggesting that even if no compensation were due, an infringement finding could be made.
The Arbitrators agree the complainants’ argument, and rule that, Art. XXIII:1 of the GATT 1994 and Art. 3.3 of the DSU do not establish a procedural requirement. As found by the Arbitrators, these provisions concern the initiation of a WTO dispute settlement proceeding where a Member considers benefits directly or indirectly accruing to it were nullified or impaired. Such an initial decision on whether or not to raise a complaint is necessarily the result of a subjective and strategic consideration from the individual perspective of a Member. However, a decision on whether the assertion of nullification or impairment by an individual Member will be warranted and justified in light of WTO law is a different decision, taken by a panel or the Appellate Body from the objective benchmark of the agreements covered by the WTO. Furthermore, the Arbitrators rule that the review of the level of nullification or impairment by Arbitrators from the objective benchmark foreseen by Art. 22 of the DSU is a separate process, independent from the finding of infringements of WTO rules by a panel or the Appellate Body. 3
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