Lesson 3: Functions of the IPPC
Topic 3: Dispute Settlement
The IPPC dispute-settlement system is used by members to resolve disputes related to plant-health measures. It may also be used to guide interpretation and application of ISPMs or the IPPC.
Objectives:
- Describe the steps to initiate an IPPC dispute
- Identify the principal difference between the IPPC and WTO dispute settlement processes
Dispute Settlement
Phytosanitary trade disputes arise between IPPC members over plant-health measures associated with internationally traded plants or plant products or over the interpretation or application of the IPPC and associated ISPMs. Disagreements are relatively frequent in the work of National Plant Protection Organizations (NPPOs). Let us take a look at how IPPC phytosanitary trade disputes are handled.
In cases where a phytosanitary dispute arises, contracting parties are encouraged to consult with the IPPC Secretariat concerning the range of dispute settlement procedures that are available and concerning what might be appropriate for the dispute in question. There are several types of procedures: informal consultation, formal consultation, good offices, and mediation or arbitration. These procedures may be conducted by or administered with assistance from the IPPC Secretariat or the Subsidiary Body on Dispute Settlement (SBDS). Once the disputing contracting parties have agreed on which procedure they wish to use, the Secretariat will usually be able to facilitate further arrangements.
The IPPC dispute settlement system can provide a basis for dispute resolution. The outcome of the IPPC dispute settlement is typically not binding (i.e., there is no mechanism to compel members to comply with recommendations of the IPPC dispute resolution panel). However, the process and results can have significant weight if the issue is taken to the WTO (World Trade Organization), particularly if the dispute is related to ISPMs. WTO dispute settlements are legally binding and can have serious economic and political consequences. Therefore, the IPPC encourages governments to begin with technical consultation with the aim of avoiding disputes.
To resolve disputes related to the IPPC, ISPMs, and their implementation, members may use the IPPC dispute settlement process. Steps in the IPPC dispute settlement process include informal consultation, request for formal consultation, review of the case by appointed experts, and reports, both binding and non-binding, issued by a committee of experts.
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