Skip to main content Accessibility help
×
Hostname: page-component-848d4c4894-pjpqr Total loading time: 0 Render date: 2024-07-03T05:29:27.798Z Has data issue: false hasContentIssue false

13 - Can foreign investors in services benefit from WTO dispute settlement? Legal standing and remedies in WTO and international arbitration

from PART 4 - GATS case law: A first assessment

Published online by Cambridge University Press:  03 September 2009

Marion Panizzon
Affiliation:
Universität Bern, Switzerland
Nicole Pohl
Affiliation:
Universität Bern, Switzerland
Pierre Sauvé
Affiliation:
London School of Economics and Political Science, Universität Bern, Switzerland
Get access

Summary

Introduction

Disputes involving trade and investment in services are a rarity in the WTO. Up to now, the WTO dispute settlement mechanism (DSM) has addressed over 130 cases, of which only a handful concerned services. Furthermore, only two disputes were true General Agreement on Trade in Services (GATS) cases, as the other three were primarily ‘goods’ cases, with only a secondary services dimension concerning the disciplines on the importation of goods – bananas and cars.

In addition, investment in services has received minimal consideration in these disputes. Of the two GATS cases, only Mexico – Telecom paid some attention to trade in services through ‘commercial presence’ (or ‘mode 3’, GATS jargon for ‘foreign investment’), but the dispute concerned mostly cross-border trade. The three goods cases involving the GATS also said little about the disciplines concerning investment in services, although some clarifications can be found in the bananas case.

It is possible to identify three reasons that may explain, at least partially, the marginal attention that WTO dispute settlement has paid to investment in services.

First, multilateral commitments in services, like tariff bindings in goods, feature an important level of ‘water’ between bound policies and applied measures. That is, domestic policies towards foreign services suppliers are commonly more liberal than those to which Members have committed under GATS rules. Indeed, the GATS has been accused of providing for very little real liberalisation.

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 2008

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Allbeury, Kerry, ‘Behind the Curtain of Intergovernmental Trade Disputes’, paper presented at the Conference ‘Changing Patterns of Authority in the Global Political Economy’, organised by the Univeristy of Tübingen, in Tübingen, Germany, 14–16 October 2004.
Beviglia-Zampetti, Americo and Sauvé, Pierre, ‘Rules of Origin in Services – A Review of Current Practice’, mimeo, 2004.
Clark, Peter and LaFortune, Gordon, ‘Why Can't North American Free Trade Agreement Chapter 11 be More Like the World Trade Organization?’, Transnational Dispute Management 1(2) (2003).Google Scholar
Davey, William, ‘Specificities of World Trade Organization Dispute Settlement in Services Cases’, Chapter 12 in this volume.
Fink, Carsten and Nikomborirak, Deunden, ‘Rules of Origin in Services: A Case Study of Five Association of Southeast Asian Nations Countries’, Chapter 5 in this volume.
Friedman, Marc and Verhoosel, Gaetan, ‘Arbitrating over bilateral investment treaty claims’, The National Law Journal (15 September 2003).Google Scholar
Gaillard, Emmanuel, ‘Enforcement of Arbitral Awards – The Next “Noga” Episode’, New York Law Journal (3 April 2003).Google Scholar
Hallward-Driemeier, Mary (2003), ‘Do Bilateral Investment Treaties Attract foreign direct investment? Only a bit… and they could bite’, World Bank Policy Research Working Paper, document number WPS3121, available at econ.worldbank.org (8/2006).
,International Law Association Committee on International Commercial Law, 2002, ‘Final Report on Public Policy as a Bar to Enforcement of International Arbitration Awards’, reproduced in Transnational Dispute Management 1(1) (February 2004).Google Scholar
Kessie, Edwini, ‘Enhancing Security and Predictability for Private Business Operators under the Dispute Settlement System of the World Trade Organization’, Journal of World Trade 34(6) (2000).Google Scholar
Kantor, Mark, ‘The Limits of Arbitration’, Transnational Dispute Management 1(2) (2004).Google Scholar
Kozawa, Sumio, ‘Depoliticization of International Dispute Settlement. A Comparison of the Dispute Settlement Provisions of the World Trade Organization and the Energy Charter Treaty’, Journal of World Investment 3(5) (2002).Google Scholar
Jansen, Bernhard, ‘The General Agreement on Tariffs and Trade/World Trade Organization Dispute Settlement Mechanism: an Introduction’, in Evans, Malcolm, (ed.), Remedies in International Law. The Institutional Dilemma, (Oxford: Hart Publishing, 1998).Google Scholar
Marceau, Gabrielle, ‘The Dispute Settlement Rules of the North American Free Trade Agreement: a Thematic Comparison with the Dispute Settlement Rules of the World Trade Organization’, in Petersmann, Ernst-Ulrich, (ed.), International Trade Law and the General Agreement on Tariffs and Trade/World Trade Organization Dispute Settlement System (The Hague: Kluwer Law International, 1997).Google Scholar
Mavroidis, Petros and Zdouc, Werner, ‘Legal Means to Protect Private Parties’ Interests in the World Trade Organization. The Case of the EC New Trade Barrier Regulation’, Journal of International Economic Law 1(3) (1998), p. 407.CrossRefGoogle Scholar
Molinuevo, Martín, 2006, ‘World Trade Organization Disciplines on Foreign Investment: Wasn't the General Agreement on Trade in Services about trade in services?’, Master thesis presented at the Università degli Studi di Bologna, available at www.nccr-trade.ch/ip/ip8/publications.html.
Morrison, Peter, ‘World Trade Organization Dispute Settlement in Services: Procedural and Substantive Aspects’, in Petersmann, Ernst-Ulrich, (ed.), International Trade Law and the General Agreement on Tariffs and Trade/World Trade Organization Dispute Settlement System (The Hague: Kluwer Law International, 1997).Google Scholar
Neumayer, Eric and Spess, Laura, ‘Do Bilateral Investment Treaties Increase Foreign Direct Investment to Developing Countries?’, World Development 33(10) (2005), p. 1567.CrossRefGoogle Scholar
Palmeter, David and Mavroidis, Petros, Dispute Settlement in the World Trade Organization (Cambridge University Press, 2004).CrossRefGoogle Scholar
Petersmann, Ernst-Ulrich, The General Agreement on Tariffs and Trade/World Trade Organization Dispute Settlement System. International Law, International Organizations and Dispute Settlement (The Hague: Kluwer Law International, 1997).Google Scholar
Rose-Ackerman, Susan and Tobin, Jennifer, ‘Foreign Direct Investment and the Business Environment in Developing Countries: The Impact of Bilateral Investment Treaties’ (2 May 2005), Yale Law & Economics Research Paper No. 293. Available at http://ssrn.com/abstract=557121.
Rubins, Noah, ‘Must the Vistorious Investor-Claimant Relinquish Title to Expropriated Property?’, Journal of World Investment 4(3) (2003).Google Scholar
Martha, Rutsel Silvestre, ‘Capacity to Sue and be Sued under World Trade Organization Law’, World Trade Review 3(1) (2004).CrossRefGoogle Scholar
Schreuer, Christoph, ‘Travelling the bilateral investment treaty Route. Of Waiting Periods, Umbrella Clauses and Forks in the Road’, Journal of World Investment & Trade 5(2) (2004).Google Scholar
Schreuer, Christoph,‘Calvo's Grandchildren: The Return of Local Remedies in Investment Arbitration’, The Law and Practice of International Courts and Tribunals 4(1) (2005).CrossRefGoogle Scholar
Schwartmann, Rolf, Private in Wirtschaftsvölkerrecht (Tübingen: Mohr Siebeck, 2005).Google Scholar
Shaffer, Gregory, Defending Interests. Public-Private Partnerships in World Trade Organization Litigation, (Washington, DC: Brookings Institution Press, 2003).Google Scholar
Smutny, Abby, ‘Arbitration Before the International Centre for Settlement of Investment Disputes’, Transnational Dispute Management 1(1) (2004).Google Scholar
,UN Conference on Trade and Development, 1999, ‘Scope and Definition’, UN Conference on Trade and Development Series on issues in international investment agreements, United Nations, New York and Geneva.
,UN Conference on Trade and Development, 2003a, ‘World Investment Report 2003 – foreign direct investment Policies for Development: National and International Perspectives’, United Nations, New York and Geneva.
,UN Conference on Trade and Development, 2003b, ‘Dispute Settlement. Investor-State’, UN Conference on Trade and Development Series on issues in international investment agreements, United Nations, New York and Geneva.
,UN Conference on Trade and Development, 2003c, ‘Course on Dispute Settlement – International Centre for the Settlement of Investment Disputes. 2.1 Overview’, United Nations, New York and Geneva.
,UN Conference on Trade and Development, 2003d, ‘Course on Dispute Settlement – International Centre for the Settlement of Investment Disputes. 2.8 Post-Award Remedies and Procedures’, United Nations, New York and Geneva.
,UN Conference on Trade and Development, 2003e, ‘Course on Dispute Settlement – International Centre for the Settlement of Investment Disputes. 2.9 Binding Force and Enforcement’, United Nations, New York and Geneva.
,UN Conference on Trade and Development, 2003f, ‘Course on Dispute Settlement – World Trade Organization. 3.13 GATS’, United Nations, New York and Geneva.
,UN Conference on Trade and Development, 2003g, ‘Dispute Settlement: State-State’, UN Conference on Trade and Development Series on issues in international investment agreements, United Nations, New York and Geneva.
,UN Conference on Trade and Development, 2004, ‘World Investment Report 2004 – The Shift Towards Services’, United Nations, New York and Geneva.
,UN Conference on Trade and Development, 2005a, ‘Latest Developments in Investor-State Dispute Settlement’, international investment agreement MONITOR No. 4 (2005), document number UN Conference on Trade and Development/WEB/ITE/IIT/2005/2.
,UN Conference on Trade and Development, 2005b, ‘Investor-State Disputes Arising from Investment Treaties: A Review’, UN Conference on Trade and Development Series on International Investment Policies for Development, United Nations, New York and Geneva.
,UN Conference on Trade and Development, 2005c, ‘Investor–State Disputes and Policy Implications’, Note by UN Conference on Trade and Development Secretariat, document number TD/B/COM.2/62, available at www.unctad.org/en/docs/c2d62_en.pdf (8/2006).
,UN Conference on Trade and Development, 2006, ‘Preserving Flexibility in IIAs: The Use of Reservations’, UN Conference on Trade and Development Series on International Investment Policies for Development, United Nations, New York and Geneva.
Verhoosel, Gaetan, ‘The Use of Investor-State Arbitration under Bilateral Investment Treaties to Seek Relief for Breaches of World Trade Organization Law’, Journal of International Economic Law 6(2) (2003).CrossRefGoogle Scholar
Mehren, George, Salomon, Claudia and Paroutsas, Aspasia, ‘Navigating Through Investor–State Arbitrations – An Overview of Bilateral Investment Treaty Claims’, Dispute Resolution Journal 59(1) (Feb.–April 2004).Google Scholar
Weiss, Friedl, ‘Dispute Settlement Under the General Agreement on Trade in Services’, in Cameron, James and Campbell, Karen, (eds.), Dispute Resolution in the World Trade Organization (London: Cameron May, 1998).Google Scholar
Zdouc, Werner, ‘World Trade Organization Dispute Settlement Procedures Relating to the GATS’, Journal of International Economic Law (1999), pp. 295–346.CrossRefGoogle Scholar

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×