Research On DSU To Introduce The System Of Collective Retaliation

After the implementation of authorized retaliation regulation of WTO's Understanding on Rules and Procedures Governing the Settlement of Dispute(“DSU” for short), the imperfection gradually appears because the retaliation system was limited to the previous subjective and objective condition when it was established. The current authorized retaliation system overly pursuits the form fairness but neglect the difference between WTO members in economy and politics issues, which resulted that the current authorized retaliation system can hardly be put into effect, and even could be used intentionally. Thus, some WTO members, especially the developing countries, proposed a reformatory idea of establishing a collective authorized retaliation system and continuously develop this theory both in substantial and procedural law perspectives. These WTO members think the collective authorized retaliation system can effectively make up the imperfection of the current authorized retaliation system. By analyzing the problems of the current authorized retaliation system, this article classifies the suggestions of bringing in collective authorized retaliation system by DSU. Also, by citing some classic cases under the spirit of WTO, this article analyzes the necessity of bringing in the collective authorized retaliation system in a comprehensive way. The above-mentioned necessity is that, it could help to solve the problem that the weak members could hardly retaliate under the present condition, keep the balance of fairness in both the form and substance perspectives and avoid some members from using intentionally the “reasonable time limit” which could lead to another damage to the winning party under the current retaliation system. Moreover, this article also analyzes the feasibility of bringing in the collective authorized retaliation system in three perspectives of base interest, theory basis and practical effect. Based on the above analysis, it is considered that the collective authorized retaliation system is the supplement to the current authorized retaliation system. It could be understood as, when the injured party files a lawsuit to DSB and was authorized to retaliate by DSB, other WTO members could choose to reach an agreement with the injured party to form a relationship of sharing common benefit while actually they have no relevance with the dispute, or, although these members don't have a special relationship with the injured party, however if the lawsuit itself or the result of the lawsuit could have an impact on those members' relevant industries and economies, then, these members could retaliate collectively together with the injured party against the losing party who violates the spirit of GATT, until the losing party fulfill its obligations, revoke or amend their trading measures which violated the regulation of GATT or fully and reasonably compensate the injured members.