Procedural Agreements in wto Disputes: Addressing the Sequencing Problem

Abstract

To ensure compliance with the outcome of its dispute settlement procedures, the World Trade Organization (wto) authorises the claimant Member to retaliate in case the respondent Member fails to comply within a certain period of time. However, the rules and procedures regarding retaliation and determination of compliance are ambiguous and have caused an interpretational problem called the sequencing problem. To address the problem, the parties to any dispute generally conclude bilateral ad hoc procedural agreements. However, by examining the procedural agreements concluded to date and by analysing the potential problems of these agreements, this article concludes that due to the dependence on the will of the parties and various aspects of the uncertain legal status of the agreements, the procedural agreements do not constitute a satisfactory method for addressing the sequencing problem. Alternatives should be considered and attempted promptly.