WORLD TRADE WT/DSB(97)/ST/1
31January 1997
ORGANIZATION(97-0376)
DISPUTE SETTLEMENT BODY Original: English
22January 1997
STATEMENT BYH.E. MR.C.LAFER (BRAZIL)
Chairman oftheDispute Settlement Body
AstheendofmytermasChairman ofthisBody draws near, Iwishtoexpress mygratitude
forthesupport received bothfromMembers oftheWorld Trade Organization (WTO) aswellasfrom
itscompetentSecretariat.Ithasbeenauniqueopportunitytocontribute--alwaysguidedbytheMembers
ofthisOrganization --tothefunctioning andconsolidation oftheDispute Settlement Body (DSB) and
totheimplementation oftheDispute Settlement Understanding (DSU).
Theexercise ofaChairmanship, ingeneral, andthatoftheDSB, inparticular, implies avery
specific functional challenge (a"dedoublement fonctionnel" touseatermcoined byGeorges Scelle),
thatisthecapacity oftheChairman totranscend theparticular interests oftheStateheorsherepresents,
insearch ofanimpartiality which willbenefit theOrganization andallitsMembers. Ithasbeenalmost
oneyearsince Ifirstchaired ameeting oftheDSB. Theconclusion ofmytermisdetermined --as
allMembers know --bythewiseprinciple ofrotation. Thisisoneofthemechanisms which help
theachievement ofconsensus, onwhich theoperation oftheWTO isbased.
Ithasbeenaprivilege formetoseelawinaction, helping settle disputes between Members
oftheWTO. Thisprivilege isallthemore valuable forme,given mypersonal background asa
professor oflawandrepresentative ofacountry which hasalways underscored aGrotian reading of
itsexternal relations. Thisapproach ofinternational relations, inspired byoneofthefounding fathers
ofinternational law,identifies boththeexistence ofconflict andthepossibility ofcooperation inworld
affairs, butseesample room foraconsensual establishment ofrules andfortheagreed application
ofsuchrules todiscipline conflicts andtopromote cooperation.
Trade--orthedouxcommerce referredtobyMontesquieuandbyKant--andlawareconvergent
andcomplementary inthesearch forpeace --thehighest value oftheworld community. Inthissense,
theactivities oftheWTO, asthefirstinternational economic organization ofthepost-cold warperiod
devoted bothtotheexpansion oftrade andtothesettlement ofdisputes eventually arising fromsuch
expansion, areofexemplary relevance. Within theDSB, suchrelevance goesbeyond themany cases
settled during theyearof1996, beitthrough mutually acceptable solutions agreed between theparties,
according tothetraditional diplomatic jurisprudence oftheGATT, beitthrough the"thickening of
legality" represented bythelegalmeans paved andconsolidated bytheDSU.
Thebeginning ofthefunctioning oftheAppellate Body hasbeenadistinctive feature ofmy
termintheChair oftheDSB. TheAppellate Body is,ininternational affairs, aunique higher level
ofappeal, ofastanding nature, aimed atdealing withdisputes between Sovereign States --andnot
between individuals orcompanies --where issues oflawcovered inapanel report andlegal
interpretations developed bythepanel arequestioned. Itis,therefore, paradigmatic ofanexpressive
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"thickening oflegality", which ishowIhavetriedtocharacterize theWTO dispute settlement system,
ascompared totheGATT system, inmy"Gilberto Amado" Memorial Lecture totheInternational
LawCommission on18June1996.
Toconclude, allow me,again asalawprofessor, toevoke anddrawuponaparallel inhistory.
In1872, inthiscityofGeneva, thecityofRousseau, oftheRedCross andofgreat tradition in
international affairs, ameeting ofacourt ofarbitration washeldtodecide onthe"Alabama" case.
Thistribunal wasintegrated, "ExVI"oftheTreaty ofWashington of1871between theUnited States
andGreat Britain, byaBrazilian diplomat andjurist, theViscount ofItajubá, appointed bytheEmperor
ofBrazil. Thedispute between theUnited States andGreat Britain hadtodowithcompensations derived
fromtheUnited States Civil War. Thedecision onthe"Alabama" casewastaken byanindependent
court ofarbitration, composed byamajority ofrepresentatives ofneutral States. Thisdecision was
alandmark inthepeaceful settlement ofinternational disputes andtherefore aturning pointinthefurther
strengthening oftheGrotian perspective ofworld affairs. Itshowed howadispute ofnosecondary
importance, between States ofnosecondary importance intheinternational system, could besettled
byjuridical means. Itwastherefore ofprimary importance tothedevelopment ofinternational justice.
Itismyexpectation andhopethat,onceagain inGeneva, theDSBandtheDSU--nowinfulloperation
withtheAppellate Body --become afurther stepinthedevelopment ofinternational justice, represented
bythecontainment ofunilateralism andbythestrengthening ofthemultilateral system, asestablished
inthe"visdirectiva" ofArticle 23oftheDSU.