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35 J. World Trade 499 (2001)
Applicable Law in WTO Dispute Settlement Proceedings

handle is hein.kluwer/jwt0035 and id is 505 raw text is: Journal of World Trade 35(3): 499-519, 2001.
© 2001 Khwer Law International. Printed in The Netherlands.
Applicable Law in WTO Dispute Settlement
Proceedings
Lorand BARTELS*
1.   INTRODUCTION
This article considers the extent to which Panels and the Appellate Body may
apply rules and principles of international law deriving from sources other than the
WTO covered agreements.' The premise of the article may be stated very simply: it is
that international law from all sources is potentially applicable as WTO law, subject to
a de facto restriction resulting from the limited jurisdiction of Panels and the Appellate
Body to decide on only certain types of disputes, and subject also to a conflicts rule,
stated in Articles 3.2 and 19.2 of the DSU, that Panels may not add to or diminish the
rights and obligations of Members set out in the covered agreements.2
The large print of the formulation suggested here differs from the view,
advanced by a number of authors, that Panels and the Appellate Body may only apply
the rules expressly set out in the covered agreements (as interpreted in accordance
with the rules of customary international law on the interpretation of treaties).3 It is
argued here that this view places too restrictive an interpretation on the relevant
provisions of the DSU, is unduly positivistic, and does not reflect the actual practice
of Panels and the Appellate Body. On the other hand, the small print qualifications
account for the fact that, first, Panels and the Appellate Body may only hear claims
based on the covered agreements and that, second, they must give priority to the
rights and obligations in the covered agreements in the event of any conflict between
these and any other norms.
* BA   (Hons), LLB     (UNSW).    Researcher, European   University  Institute,  Florence,  Italy
(lorand.bartels@iue.it). Many thanks to Gabrielle Marceau, Petros Mavroidis and Federico Ortino for their kind
comments. All errors remain mine. This article will also be published in J. Bourgeois and J. Wouters (eds), WTO
Dispute Settlement (Cameron, May 2001) (forthcoming).
' The 'covered agreements' include the WTO Agreement, the Agreements in Annexes 1 and 2, as well as
any Plurilateral Trade Agreement in Annex 4 where its Committee of signatories has taken a decision to apply the
DSU (Brazil-Measures Affecting Desiccated Coconut, WT/DS22/AB/R, 21 February 1997, at p. 11).
2 The present author agrees with Mavroidis and Palmeter that all of the sources of law set out in Article
38(l)(d) of the Statute of the International Court of Justice are potential sources of law though not that the
authority for this is Article 7 of the DSU. See D. Palmeter and P.C. Mavrmidis, The ,TO Legal System: Sources of
Law, 92 American Journal of International Law (1998) p. 398, at p. 398, and also T. Schoenbaum, WTO Dispute
Settlement: Praises and Suggestions for Reform, 47 International and Comparative Law Quarterly (1998), p. 647.
1 E.g. G. Marceau, A Call for Coherence in International Law: Praises for the Prohibition Against Clinical
Isolation in WTO Dispute Settlement, 33-J.WT.5 (1999), p. 87, at pp. 109-115; L.D. Guruswamy, Should
UNCLOS or GATT/WTO Decide Trade and Environment Disputes? 7 Minnesota Journal of Global Trade 287
(1998), p. 311; Trachtman, The Domain of WTO Dispute Resolution, 40 (2) Harvard International LawJournal 333
(1999), p. 342, n 41; J.1. Charney, Is International Law Threatened by Multiple International Tribunals? 271 Recueil des
Cours 101 (1998), p. 219. For a different view, see J. Pauwelyn, Public International Law in the WTO System: How
Far Can We Go? (2001) 95 (3) AJIL (forthcoming).
Copyright © 2007 by Kluwer Law International. All rights reserved.
No claim asserted to original government works.

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