WORLD TRADE WT/DSB/RC/1
11December 1996
ORGANIZATION(96-5267)
RULES OFCONDUCT FOR THE
UNDERSTANDING ONRULES AND PROCEDURES
GOVERNING THE SETTLEMENT OFDISPUTES
I. Preamble
Members,
Recalling thaton15April 1994 inMarrakesh, Ministers welcomed thestronger andclearer
legalframework theyhadadopted fortheconduct ofinternational trade, including amore effective
andreliable dispute settlement mechanism;
Recognizing theimportance offulladherence totheUnderstanding onRules andProcedures
GoverningtheSettlementofDisputes(“DSU”)andtheprinciplesforthemanagementofdisputesapplied
under Articles XXII andXXIII ofGATT 1947, asfurther elaborated andmodified bytheDSU;
Affirming thattheoperation oftheDSU would bestrengthened byrules ofconduct designed
tomaintain theintegrity, impartiality andconfidentiality ofproceedings conducted under theDSU
thereby enhancing confidence inthenewdispute settlement mechanism;
Hereby establish thefollowing Rules ofConduct.
II. Governing Principle
1. Each person covered bythese Rules (asdefined inparagraph 1ofSection IVbelow and
hereinafter called “covered person ”)shallbeindependent andimpartial, shallavoid direct orindirect
conflicts ofinterest andshallrespect theconfidentiality ofproceedings ofbodies pursuant tothedispute
settlement mechanism, sothatthrough theobservance ofsuchstandards ofconduct theintegrity and
impartiality ofthatmechanism arepreserved. These Rules shallinnowaymodify therights and
obligations ofMembers under theDSU northerules andprocedures therein.
III. Observance oftheGoverning Principle
1. Toensure theobservance oftheGoverning Principle ofthese Rules, eachcovered person is
expected (1)toadhere strictly totheprovisions oftheDSU; (2)todisclose theexistence ordevelopment
ofanyinterest, relationship ormatter thatthatperson could reasonably beexpected toknow andthat
islikely toaffect, orgiverisetojustifiable doubts asto,thatperson 'sindependence orimpartiality;WT/DSB/RC/1
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and(3)totakeduecareintheperformance oftheirduties tofulfiltheseexpectations, including through
avoidance ofanydirect orindirect conflicts ofinterest inrespect ofthesubject matter oftheproceedings.
2. Pursuant totheGoverning Principle, eachcovered person, shallbeindependent andimpartial,
andshallmaintain confidentiality. Moreover, suchpersons shallconsider onlyissues raised in,and
necessary tofulfiltheirresponsibilities within, thedispute settlement proceeding andshallnotdelegate
thisresponsibility toanyother person. Suchperson shallnotincur anyobligation oraccept anybenefit
thatwould inanyway interfere with, orwhich could giveriseto,justifiable doubts astotheproper
performance ofthatperson 'sdispute settlement duties.
IV. Scope
1. These Rules shallapply, asspecified inthetext,toeachperson serving: (a)onapanel; (b)
ontheStanding Appellate Body; (c)asanarbitrator pursuant totheprovisions mentioned inAnnex
“1a”;or(d)asanexpert participating inthedispute settlement mechanism pursuant totheprovisions
mentioned inAnnex “1b”.These Rules shallalsoapply, asspecified inthistextandtherelevant
provisions oftheStaffRegulations, tothose members oftheSecretariat called upontoassist thepanel
inaccordance withArticle 27.1oftheDSU ortoassist informal arbitration proceedings pursuant to
Annex “1a”;totheChairman oftheTextiles Monitoring Body (hereinafter called “TMB”)andother
membersoftheTMBSecretariatcalledupontoassisttheTMBinformulatingrecommendations,findings
orobservations pursuant totheWTO Agreement onTextiles andClothing; andtoStanding Appellate
Body support staffcalled upon toprovide theStanding Appellate Body withadministrative orlegal
support inaccordance withArticle 17.7oftheDSU(hereinafter “Member oftheSecretariat orStanding
Appellate Body support staff”),reflecting theiracceptance ofestablished norms regulating theconduct
ofsuchpersons asinternational civilservants andtheGoverning Principle ofthese Rules.
2. Theapplication ofthese Rules shallnotinanywayimpede theSecretariat 'sdischarge ofits
responsibility tocontinue torespond toMembers 'requests forassistance andinformation.
3. These Rules shallapply tothemembers oftheTMB totheextent prescribed inSection V.
V. Textiles Monitoring Body
1. Members oftheTMB shalldischarge theirfunctions onanadpersonam basis, inaccordance
withtherequirement ofArticle 8.1oftheAgreement onTextiles andClothing, asfurther elaborated
intheworkingproceduresoftheTMB,soastopreservetheintegrityandimpartialityofitsproceedings.1
1These working procedures, asadopted bytheTMB on26July1995 (G/TMB/R/1), currently include, interalia,thefollowing
language inparagraph 1.4:“Indischarging theirfunctions inaccordance withparagraph 1.1above, theTMB members andalternates shall
undertake nottosolicit, accept oractuponinstructions fromgovernments, nortobeinfluenced byanyotherorganisations orundue extraneous
factors. They shalldisclose totheChairman anyinformation thattheymayconsider likely toimpede theircapacity todischarge theirfunctions
onanadpersonam basis. Should serious doubts ariseduring thedeliberations oftheTMB regarding theability ofaTMB member toact
onanadpersonam basis, theyshallbecommunicated totheChairman. TheChairman shalldealwiththeparticular matter asnecessary ”.WT/DSB/RC/1
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VI. Self-Disclosure Requirements byCovered Persons
1. (a) Each person requested toserve onapanel, ontheStanding Appellate Body, asan
arbitrator, orasanexpert shall, atthetimeoftherequest, receive from theSecretariat these Rules,
which include anIllustrative List(Annex 2)ofexamples ofthematters subject todisclosure.
(b) Anymember oftheSecretariat described inparagraph IV:1, whomayexpect tobe
called upon toassist inadispute, andStanding Appellate Body support staff, shallbefamiliar with
these Rules.
2. Assetoutinparagraph VI:4below, allcovered persons described inparagraph VI.1(a) and
VI.1(b) shalldisclose anyinformation thatcould reasonably beexpected tobeknown tothem atthe
timewhich, coming within thescope oftheGoverning Principle ofthese Rules, islikely toaffect or
giverisetojustifiable doubts astotheirindependence orimpartiality. These disclosures include the
typeofinformation described intheIllustrative List,ifrelevant.
3. These disclosure requirements shallnotextend totheidentification ofmatters whose relevance
totheissues tobeconsidered intheproceedings would beinsignificant. They shalltakeintoaccount
theneed torespect thepersonal privacy ofthose towhom these Rules apply andshall notbeso
administratively burdensome astomake itimpracticable forotherwise qualified persons toserve on
panels, theStanding Appellate Body, orinother dispute settlement roles.
4. (a) Allpanelists, arbitrators andexperts, priortoconfirmation oftheirappointment, shall
complete theform atAnnex 3ofthese Rules. Such information would bedisclosed totheChair of
theDispute Settlement Body (“DSB”)forconsideration bytheparties tothedispute.
(b) (i) Persons serving ontheStanding Appellate Body who, through rotation, are
selected toheartheappeal ofaparticular panel case, shallreview thefactual
portion ofthePanel report andcomplete theformatAnnex 3.Suchinformation
would bedisclosed totheStanding Appellate Bodyforitsconsideration whether
themember concerned should hearaparticular appeal.
(ii) Standing Appellate Body support staffshalldisclose anyrelevant matter tothe
Standing Appellate Body, foritsconsideration indeciding ontheassignment
ofstafftoassist inaparticular appeal.
(c) When considered toassist inadispute, members oftheSecretariat shalldisclose to
theDirector-General oftheWTO theinformation required under paragraph VI:2ofthese Rules and
anyotherrelevant information required under theStaffRegulations, including theinformation described
inthefootnote.**
**Pending adoption oftheStaffRegulations, members oftheSecretariat shallmake disclosures totheDirector-General inaccordance
withthefollowing draftprovision tobeincluded intheStaffRegulations:
"When paragraph VI:4(c) oftheRules ofConduct fortheDSU isapplicable, members oftheSecretariat would disclose tothe
Director-General oftheWTO theinformation required inparagraph VI:2ofthose Rules, aswellasanyinformation regarding theirparticipation
inearlier formal consideration ofthespecific measure atissue inadispute under anyprovisions oftheWTO Agreement, including through
formal legaladvice under Article 27.2oftheDSU, aswellasanyinvolvement withthedispute asanofficial ofaWTO Member government
orotherwise professionally, before having joined theSecretariat.
TheDirector-General shallconsider anysuchdisclosures indeciding ontheassignment ofmembers oftheSecretariat toassist
inadispute.
When theDirector-General, inthelightofhisconsideration, including ofavailable Secretariat resources, decides thatapotential
conflict ofinterest isnotsufficiently material towarrant non-assignment ofaparticular member oftheSecretariat toassist inadispute,
theDirector-General shallinform thepanel ofhisdecision andoftherelevant supporting information."WT/DSB/RC/1
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5. During adispute, eachcovered person shallalsodisclose anynewinformation relevant to
paragraph VI:2above attheearliest timetheybecome aware ofit.
6. TheChair oftheDSB, theSecretariat, parties tothedispute, andother individuals involved
inthedisputesettlementmechanismshallmaintaintheconfidentialityofanyinformationrevealedthrough
thisdisclosure process, even after thepanel process anditsenforcement procedures, ifany,are
completed.
VII. Confidentiality
1. Each covered person shall atalltimes maintain theconfidentiality ofdispute settlement
deliberations andproceedings together withanyinformation identified byaparty asconfidential. No
coveredpersonshallatanytimeusesuchinformationacquiredduringsuchdeliberationsandproceedings
togainpersonal advantage oradvantage forothers.
2. During theproceedings, nocovered person shallengage inexparte contacts concerning matters
under consideration. Subject toparagraph VII:1, nocovered person shallmake anystatements on
suchproceedings ortheissues indispute inwhich thatperson isparticipating, untilthereport ofthe
panel ortheStanding Appellate Body hasbeenderestricted.
VIII. Procedures Concerning Subsequent Disclosure andPossible Material Violations
1. Anyparty toadispute, conducted pursuant totheWTO Agreement, whopossesses orcomes
intopossession ofevidence ofamaterial violation oftheobligations ofindependence, impartiality or
confidentiality ortheavoidance ofdirect orindirect conflicts ofinterest bycovered persons which
mayimpair theintegrity, impartiality orconfidentiality ofthedispute settlement mechanism, shallat
theearliest possible timeandonaconfidential basis, submit suchevidence totheChair oftheDSB,
theDirector-General ortheStanding Appellate Body, asappropriate according totherespective
procedures detailed inparagraphs VIII:5 toVIII:17 below, inawritten statement specifying therelevant
factsandcircumstances. Other Members whopossess orcome intopossession ofsuchevidence, may
provide suchevidence totheparties tothedispute intheinterest ofmaintaining theintegrity and
impartiality ofthedispute settlement mechanism.
2. When evidence asdescribed inparagraph VIII:1 isbased onanalleged failure ofacovered
person todisclose arelevant interest, relationship ormatter, thatfailure todisclose, assuch, shallnot
beasufficient ground fordisqualification unless there isalsoevidence ofamaterial violation ofthe
obligations ofindependence, impartiality, confidentiality ortheavoidance ofdirect orindirect conflicts
ofinterests andthattheintegrity, impartiality orconfidentiality ofthedispute settlement mechanism
would beimpaired thereby.
3. When suchevidence isnotprovided attheearliest practicable time, theparty submitting the
evidence shallexplain whyitdidnotdosoearlier andthisexplanation shallbetaken intoaccount in
theprocedures initiated inparagraph VIII:1.
4. Following thesubmission ofsuchevidence totheChair oftheDSB, theDirector-General of
theWTO ortheStanding Appellate Body, asspecified below, theprocedures outlined inparagraphs
VIII:5 toVIII:17 below shallbecompleted within fifteen working days.WT/DSB/RC/1
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Panelists, Arbitrators, Experts
5. Ifthecovered person whoisthesubject oftheevidence isapanelist, anarbitrator oranexpert,
theparty shallprovide suchevidence totheChair oftheDSB.
6. Upon receipt oftheevidence referred toinparagraphs VIII:1 andVIII:2, theChair oftheDSB
shallforthwith provide theevidence totheperson whoisthesubject ofsuchevidence, forconsideration
bythelatter.
7. If,afterhaving consulted withtheperson concerned, thematter isnotresolved, theChair of
theDSB shall forthwith provide alltheevidence, andanyadditional information from theperson
concerned, totheparties tothedispute. Iftheperson concerned resigns, theChair oftheDSBshall
inform theparties tothedispute and,asthecasemaybe,thepanelists, thearbitrator(s) orexperts.
8. Inallcases, theChair oftheDSB, inconsultation withtheDirector-General andasufficient
number ofChairs oftherelevant Council orCouncils toprovide anoddnumber, andafterhaving
provided areasonable opportunity fortheviews oftheperson concerned andtheparties tothedispute
tobeheard, would decide whether amaterial violation oftheseRules asreferred toinparagraphs VIII:1
andVIII:2 above hasoccurred. Where theparties agree thatamaterial violation ofthese Rules has
occurred, itwould beexpected that,consistent withmaintaining theintegrity ofthedispute settlement
mechanism, thedisqualification oftheperson concerned would beconfirmed.
9. Theperson whoisthesubject oftheevidence shallcontinue toparticipate intheconsideration
ofthedispute unless itisdecided thatamaterial violation ofthese Rules hasoccurred.
10. TheChair oftheDSBshallthereafter takethenecessary stepsfortheappointment oftheperson
whoisthesubject oftheevidence tobeformally revoked, orexcused from thedispute asthecase
maybe,asofthattime.
Secretariat
11. Ifthecovered person whoisthesubject oftheevidence isamember oftheSecretariat, the
party shallonlyprovide theevidence totheDirector-General oftheWTO, whoshallforthwith provide
theevidence totheperson whoisthesubject ofsuchevidence andshallfurther inform theother party
orparties tothedispute andthepanel.
12. ItshallbefortheDirector-General totakeanyappropriate action inaccordance withtheStaff
Regulations.***
13. TheDirector-General shallinform theparties tothedispute, thepanel andtheChair ofthe
DSBofhisdecision, together withrelevant supporting information.
***Pending adoption oftheStaffRegulations, theDirector-General would actinaccordance withthefollowing draftprovision forthe
StaffRegulations: "Ifparagraph VIII:11 oftheRules ofConduct fortheDSU governing thesettlement ofdisputes isinvoked, theDirector-
General shallconsult withtheperson whoisthesubject oftheevidence andthepanel andshall, ifnecessary, takeappropriate disciplinary
action".WT/DSB/RC/1
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Standing Appellate Body
14. Ifthecovered person whoisthesubject oftheevidence isamember oftheStanding Appellate
Body oroftheStanding Appellate Body support staff, theparty shallprovide theevidence totheother
party tothedispute andtheevidence shallthereafter beprovided totheStanding Appellate Body.
15. Upon receipt oftheevidence referred toinparagraphs VIII:1 andVIII:2 above, theStanding
Appellate Body shall forthwith provide ittotheperson whoisthesubject ofsuchevidence, for
consideration bythelatter.
16. ItshallbefortheStanding Appellate Body totakeanyappropriate action afterhaving provided
areasonable opportunity fortheviews oftheperson concerned andtheparties tothedispute tobe
heard.
17. TheStanding Appellate Body shallinform theparties tothedispute andtheChair oftheDSB
ofitsdecision, together withrelevant supporting information.
***
18. Following completion oftheprocedures inparagraphs VIII:5 toVIII:17, iftheappointment
ofacovered person, other thanamember oftheStanding Appellate Body, isrevoked orthatperson
isexcused orresigns, theprocedures specified intheDSU forinitial appointment shallbefollowed
forappointment ofareplacement, butthetimeperiods shallbehalfthose specified intheDSU.****
Themember oftheStanding Appellate Body who, under thatBody'srules, would nextbeselected
through rotation toconsider thedispute, would automatically beassigned totheappeal. Thepanel,
members oftheStanding Appellate Body hearing theappeal, orthearbitrator, asthecasemaybe,
maythendecide afterconsulting withtheparties tothedispute, onanynecessary modifications totheir
working procedures orproposed timetable.
19. Allcovered persons andMembers concerned shallresolve matters involving possible material
violations oftheseRules asexpeditiously aspossible soasnottodelay thecompletion ofproceedings,
asprovided intheDSU.
20. Except totheextent strictly necessary tocarry outthisdecision, allinformation concerning
possible oractual material violations ofthese Rules shallbekeptconfidential.
IX. Review
1. These Rules ofConduct shallbereviewed within twoyears oftheiradoption andadecision
shallbetaken bytheDSBastowhether tocontinue, modify orterminate these Rules.
****Appropriate adjustments would bemade inthecaseofappointments pursuant totheAgreement onSubsidies andCountervailing
Measures.WT/DSB/RC/1
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ANNEX 1a
Arbitrators acting pursuant tothefollowing provisions:
- Articles 21.3(c); 22.6and22.7; 26.1(c) and25oftheDSU;
- Article 8.5oftheAgreement onSubsidies andCountervailing Measures;
- Articles XXI.3 andXXII.3 oftheGeneral Agreement onTrade inServices.WT/DSB/RC/1
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ANNEX 1b
Experts advising orproviding information pursuant tothefollowing provisions:
- Article 13.1; 13.2oftheDSU;
- Article 4.5oftheAgreement onSubsidies andCountervailing Measures;
- Article 11.2oftheAgreement ontheApplication ofSanitary andPhytosanitary Measures;
- Article 14.2; 14.3oftheAgreement onTechnical Barriers toTrade.WT/DSB/RC/1
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ANNEX 2
ILLUSTRATIVE LIST OFINFORMATION TOBEDISCLOSED
Thislistcontains examples ofinformation ofthetypethataperson called upon toserve in
adispute should disclose pursuant totheRules ofConduct fortheUnderstanding onRules and
Procedures Governing theSettlement ofDisputes.
Each covered person, asdefined inSection IV:1ofthese Rules ofConduct hasacontinuing
dutytodisclose theinformation described inSection VI:2 ofthese Rules which mayinclude the
following:
(a) financial interests (e.g.investments, loans, shares, interests, other debts); business
interests(e.g.directorshiporothercontractualinterests);andpropertyinterestsrelevant
tothedispute inquestion;
(b) professional interests (e.g.apastorpresent relationship withprivate clients, orany
interests theperson mayhave indomestic orinternational proceedings, andtheir
implications, where these involve issues similar tothose addressed inthedispute in
question);
(c) other active interests (e.g. active participation inpublic interest groups orother
organisations which mayhaveadeclared agenda relevant tothedispute inquestion);
(d) considered statements ofpersonal opinion onissues relevant tothedispute inquestion
(e.g.publications, public statements);
(e) employment orfamily interests (e.g.thepossibility ofanyindirect advantage orany
likelihood ofpressure which could arisefromtheiremployer, business associates or
immediate family members).WT/DSB/RC/1
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ANNEX 3
Dispute Number: ________
WORLD TRADE ORGANIZATION
DISCLOSURE FORM
IhavereadtheUnderstanding onRules andProcedures Governing theSettlement ofDisputes
(DSU) andtheRules ofConduct fortheDSU. Iunderstand mycontinuing duty, while participating
inthedispute settlement mechanism, anduntilsuchtimeastheDispute Settlement Body (DSB) makes
adecision onadoption ofareport relating totheproceeding ornotes itssettlement, todisclose herewith
andinfuture anyinformation likely toaffect myindependence orimpartiality, orwhich could give
risetojustifiable doubts astotheintegrity andimpartiality ofthedispute settlement mechanism; and
torespect myobligations regarding theconfidentiality ofdispute settlement proceedings.
Signed: Dated: