With the DSB’s adoption of the panel (and Appellate Body) report(s), there is now a “recommendation and ruling” by the DSB addressed to the losing party (in the case of a successful violation complaint) to bring itself into compliance with (WTO) law or (in the case of a successful non-violation complaint) to find a mutually satisfactory adjustment.
Article 3.7the DSU states that in the absence of a mutually agreed solution, the first objective of the dispute settlement mechanism is usually to secure the withdrawal of the measures found inconsistent with WTO law. Article 21.1the DSU adds that prompt compliance with the recommendations or rulings of the DSB is essential in order to ensure the effective resolution of disputes.
The DSB is the WTO body responsible for supervising the implementation of panel and Appellate Body reports (Article 2 of the DSU). As in the previous stages of the dispute settlement system, it is the WTO Members, whose delegates compose the DSB, that must take the initiative to place items on the DSB agenda (and not the WTO Secretariat).
Intentions of implementation back to top
The first duty of the “losing” Member is to inform the DSB, at a meeting within 30 days after the adoption of the report(s), of its intentions to implement the recommendations and rulings of the DSB (Article 21.3 of the DSU).
Time-period for implementation back to top
It is usually at that same meeting that the Member concerned states whether it is able to comply immediately with the recommendations and rulings. If immediate compliance is not possible, the implementing Member has a reasonable period of time for achieving that compliance (Article 21.3 of the DSU). It is thus clear that the reasonable period of time for complying with the recommendations and rulings is not available unconditionally, but only if immediate compliance is impracticable.1 In practice, WTO Members very often claim that they cannot immediately comply