Introduction The trade between the United States (US) and the European Union (EU) is estimated at a

1400 WordsApr 23, 20196 Pages
Introduction The trade between the United States (US) and the European Union (EU) is estimated at a value of $750 billion annually (Tehrani, 2008). As both countries have their own specific food safety regulations, there is always going to be a difference of opinion on whose regulation is correct. In 1997, a major difference in opinion became apparent between the US and the EU, where the EU felt that procedures used by the US to decontaminate poultry where not safe (Škoba, 2013). The use of “hyper-chlorinated water” (Site, 2013) and pathogen reduction treatments (PRTs) whilst processing US poultry lead to the prohibition of all “poultry meat and poultry meat products” (CongressDaily, 2009) coming in to the EU (CongressDaily, 2009). This…show more content…
The SPS agreement allows each nation to decide its own level of safeguards and hence may apply protecting measures based on scientific safety risk assessment data (Scherzberg, 2006). However, where members feel that unjustifiable trade barriers have been set up and breach the SPS or TBT agreement, they can approach the WTO under the Dispute Settlement Understanding (DSU) agreement (WTO, n.d). The DSU supplies the procedures under which trade disputes should be handled, for example the DSB has the authority to set up a panel to review the dispute(s) and “to oversee reports, rulings, and their implementation” (Tehrani, 2008). Subsequently, the Appellate Body can accept, amend or even reject the findings of the panel and then have the responsibility to ensure the judgment of the ruling is implemented and also “oversee the amount of compensation and retaliation” (WTO, 2014, Tehrani, 2008) There are deadlines set for many stages of the disputes settlements process (Chatháin, 1999). These different stages of the panel process are shown in figure 1. (WTO, 2005, Srinivasan, 2007) Figure 1: The Disputes Settlement Panel Process (WTO, 2005, Srinivasan, 2007) Governments (members) always have to be involved in the dispute settlement case as commercial organisations do not have the right to apply through the dispute settlement system alone (Hoekman and Mavroidis, 2000). Member countries can discuss and try to “settle out of court”(WTO, 2005) during

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