Voting procedures

VOTING PROCEDURES

The WTO is run by its member governments. All major decisions are made by the membership as a whole.

Decisions are normally taken by consensus. Power is not delegated to directors or the organization’s head.
The rules are imposed under agreed procedures that they negotiated, including the possibility of trade sanctions.
Sanctions are imposed by member countries, and authorized by the membership as a whole.

Trade relations often involve conflicting interests. A way to settle these differences is through some neutral procedure based on an agreed legal foundation.

How are disputes settled?

Settling disputes is the responsibility of the Dispute Settlement Body which consists of all WTO members.

Consultation (up to 60 days). The countries in dispute have to talk to each other to see if they can settle their differences by themselves. If that fails, they can also ask the WTO director-general to mediate.
The panel (up to 45 days for a panel to be appointed, plus 6 months for the panel to conclude). If consultations fail, the complaining country can ask for a panel to be appointed.

Panels are like tribunals, but they are usually chosen in consultation with the countries in dispute. Panels consist of three experts from different countries who examine the evidence and decide who is right and who is wrong.

The main stages are:

Before the first hearing: each side in the dispute presents its case in writing to the panel.
First hearing: the case for the complaining country and defence.
Rebuttals: the countries involved submit written rebuttals and present oral arguments at the panel’s second meeting.
Experts: if one side raises scientific or other technical matters, the panel may consult experts review group to prepare an advisory report.
First draft: the panel submits the descriptive sections of its report to the two sides, giving them two weeks to comment.
Interim report: The panel then submits an interim report, including its findings and conclusions, to the two sides, giving them one week to ask for a review.
Review: The period of review must not exceed two weeks.
Final report: A final report is submitted to the two sides. If the panel decides that the disputed trade measure does break a WTO agreement or an obligation, it recommends that the measure be made to conform with WTO rules.
The report becomes a ruling: Both sides can appeal the report.

Voting is possible

Where consensus is not possible, the WTO agreement allows for voting (a majority of the votes cast and on the basis of “one country, one vote”).

The WTO Agreement envisages four specific situations involving voting:

An interpretation of any of the multilateral trade agreements can be adopted by a majority of three quarters of WTO members.
The Ministerial Conference can waive an obligation imposed on a particular member by a multilateral agreement, through a three-quarters majority.
Decisions to amend provisions of the multilateral agreements can be adopted through approval. The amendments only take effect for those WTO members which accept them.
A decision to admit a new member is taken by a two-thirds majority in the Ministerial Conference, or the General Council in between conferences.