RESTRICTED
PREPARATORY COMMITTEE PC/IPL/W/12
FOR THE 9November 1994
WORLD TRADE ORGANIZATION
(94-2362)
SUB-COMMITTEE ONINSTITUTIONAL , ORIGINAL :ENGLISH
PROCEDURAL AND LEGAL MATTERS
RULES OFETHICAL CONDUCT FOR
THE SETTLEMENT OFDISPUTES
Communication from theUnited States
Thefollowing communication, dated 7November 1994, hasbeenreceived from theOffice
oftheUnited States Trade Representative inGeneva, withtherequest thatitbecirculated totheMembers
oftheSub-Committee.
____________
IntheirDeclaration ofApril 15,1994, atMarrakesh, Ministers welcomed "thestronger and
clearer legal framework theyhaveadopted fortheconduct ofinternational trade, including amore
effective andreliable dispute settlement mechanism." Inorder toachieve a"reliable" dispute settlement
mechanism, itisessential thattheintegrity andimpartiality ofproceedings conducted under theWTO
Understanding onRules andProcedures Governing theSettlement ofDisputes (DSU) bemaintained.
Theavoidance ofconflicts ofinterest isspecifically addressed inArticle 17:3oftheDSU in
relation totheAppellate Body. Inaddition, theimpartiality oftheWTO Secretariat isspecifically
addressed inArticle 27:2oftheDSU inrelation tothemanner inwhich legaladvice andassistance
areprovided bytheSecretariat todeveloping country Members.
Inaddition tothesespecific provisions, theoperation oftheDSUshould befurther strengthened
byrulesofethical conduct adopted bytheappropriate WTO body thatwould apply generally forthe
settlement ofdisputes. These ruleswould ensure thateachperson serving onapanel ortheAppellate
Body, aswellasaSecretariat official serving suchpersons, avoid impropriety andtheappearance of
impropriety andobserve highstandards ofconduct sothattheintegrity andimpartiality ofthedispute
settlement process ispreserved.
TheUnited States submits theattached draftrulesofethical conduct1fortheconsideration of
theSubcommittee onInstitutional, Procedural andLegal Matters. Therulesareself-explanatory, but
certain basic elements should benoted:
1) Therulesaredesigned toensure strictadherence totherulesandprocedures thatwerenegotiated
intheUruguay Round andcodified intheDSU. They would innowaymodify thebasicrights
andobligations ofMembers withrespect todispute settlement under theWTO.
2) Therulesprovide fordisclosure totheWTO Members involved inadispute bypanelists, the
Appellate Body orSecretariat officials ofpertinent information before dispute settlement
1SeeAnnex 1.PC/IPL/W/12
Page2
proceedings areunderway sothatpotential conflicts ofinterest canbeavoided. Draft disclosure
statements tobeusedforthispurpose havebeenattached.
3) Panelists, Appellate Body members andSecretariat officials would berequired totakecare
intheperformance oftheirduties during dispute settlement proceedings toadhere totherules
ofethicalconductinordertomaintaintheirindependenceandavoidcreationofpotentialconflicts
ofinterest. TheWTO Members would provide (bymeans ofaseparate decision, adraftof
whichisattached)2forthedisqualificationofanypanelist,AppellateBodymemberorSecretariat
official committing amaterial violation oftherules.
TheUnited States plans tointroduce theattached draft rules ofethical conduct andaccompanying
documents forconsideration bytheSubcommittee atitsmeeting scheduled forNovember 11,1994.
TheUnited States further proposes thatthese rules beapproved bytheSubcommittee forinclusion
among therecommendations oftheWTO Preparatory Committee totheWTO bodies.
2SeeAnnex 2.PC/IPL/W/12
Page3
ANNEX 1
RULES OFETHICAL CONDUCT FOR THE
UNDERSTANDING ONRULES AND PROCEDURES
GOVERNING THE SETTLEMENT OFDISPUTES
I.Preamble
Members:
Affirming theimportance ofmaintaining theintegrity andimpartiality ofproceedings conducted
pursuant totheUnderstanding onRules andProcedures Governing theSettlement ofDisputes (DSU)
toachieve confidence inthedispute settlement system,
Hereby establish thefollowing rules ofethical conduct.
II.General Principle
Thegoverning principle ofthese rulesisthateachperson serving onapanel ortheAppellate
Body (hereinafter panelist) shallavoid impropriety andtheappearance ofimpropriety andshallobserve
highstandards ofconduct sothattheintegrity andimpartiality ofthedispute settlement process is
preserved.
Thisprinciple istobeobserved bymeans of:(1)adutytodisclose theexistence ofanyinterest,
relationship ormatter thatislikely toaffect thatperson 'sindependence orimpartiality orthatmight
reasonably create anappearance ofimpropriety oranapprehension ofbias;(2)careintheperformance
ofdutiestomaintainindependenceandavoidcreationofanappearanceofimproprietyoranapprehension
ofbias,and(3)adherence totheprovisions oftheDSU.
Anappearance ofimpropriety oranapprehension ofbiasiscreated where areasonable person,
withknowledgeofalltherelevantcircumstancesthatareasonableinquirywoulddisclose,wouldconclude
thattheaffected person 'sability tocarry outhisorherduties withintegrity, impartiality andcompetence
isimpaired.
Disclosure obligations should notbeinterpreted sothattheburden ofdetailed disclosure makes
itimpractical forotherwise qualified persons toserve, thereby depriving theMembers oftheservices
ofthose persons whomight bebestqualified toserve onpanels, theAppellate Body, orinother dispute
settlement roles. Thus, potential panelists should notbecalled upontodisclose interests, relationships
ormatters whose bearing ontheirroleintheproceeding would betrivial.
III.Independence andImpartiality
A. Apanelist shall:
(1)beindependent andimpartial,
(2)avoid creating anappearance ofimpropriety oranapprehension ofbias,PC/IPL/W/12
Page4
(3)avoid anyrelationship, oracquiring anyfinancial interest, thatislikely toaffect
thepanelist 'simpartiality orthatmight reasonably create anappearance ofimpropriety
oranapprehension ofbias;and
(4)consider onlythose issues raised intheproceeding andnecessary tofulfill that
person 'smandate andshallnotdelegate thedutytofulfill thismandate toanyother
person.
B. Apanelist shallnot:
(1)beinfluenced byself-interest, outside pressure, political considerations, public
clamor, loyalty toaMember orfearofcriticism,
(2)allow pastorexisting financial, business, professional, family orsocial relationships
orresponsibilities toinfluence thatperson 'sconduct orjudgment,
(3)directly orindirectly, incur anyobligation oraccept anybenefit thatwould inany
wayinterfere, orappear tointerfere, withtheproper performance ofthatperson 's
dispute settlement duties, or
(4)usethedispute settlement position toadvance anypersonal orprivate interests and
shallavoid actions thatmaycreate theimpression thatothers areinaspecial position
toinfluence thatperson.
IV.Specific Disclosure Requirements
A. Aperson requested toserve asapanelist shalldisclose totheRegistrar forconsideration
bytheparties tothedispute anyinterest, relationship ormatter thatislikely toaffect thatperson 's
independence orimpartiality orthatmight reasonably create anappearance ofimpropriety oran
apprehension ofbiasintheproceeding. Tothisend,suchpersons shallmake allreasonable efforts
tobecome aware ofanysuchinterests, relationships andmatters. They shalldisclose suchinterests,
relationships andmatters bycompleting aDisclosure Statement provided bytheDispute Settlement
Registrar andsending ittotheRegistrar, andshallprovide anuptodateandcomplete curriculum vitae
prior tofinalselection asapanelist.
B. Aperson requested toserve asapanelist shall, afterreviewing therequest forthe
establishment ofapanel, andinthecaseoftheAppellate Body thefactual portion ofthepanel'sreport,
shalldisclose thefollowing information aswellasanyother information pertinent toparagraph A:
(1) anyfinancial, business orprofessional interest in:
(a)theproceeding inwhich theperson hasbeenrequested toserve oritsoutcome,
(b)another proceeding under theAgreement Establishing theWorld Trade Organization
involving issues thatmaybedecided orthesubject matter oftheproceeding inwhich
theperson hasbeenrequested toserve, and
(c)anydomestic court oradministrative proceeding involving theissues thatmaybe
decided orthesubject matter oftheproceeding inwhich theperson hasbeenrequested
toserve; andPC/IPL/W/12
Page5
(2) anyfinancial, business orprofessional interest oftheperson 'semployer (iftheemployer
isother thanagovernment), business associate orimmediate family member in:
(a)theproceeding inwhich theperson hasbeenrequested toserve oritsoutcome,
(b)another proceeding under theAgreement Establishing theWorld Trade Organization
involving issues thatmaybedecided orthesubject matter oftheproceeding inwhich
theperson hasbeenrequested toserve, and
(c)anydomestic court oradministrative proceeding involving theissues thatmaybe
decided orthesubject matter oftheproceeding inwhich theperson hasbeenrequested
toserve.
C. Each panelist shallhaveacontinuing dutytomake allreasonable efforts tobecome
aware ofanyinterests, relationships ormatters referred toinsections AandBandshalldisclose them.
Thepanelist shalldisclose suchinterests, relationships andmatters bycommunicating theminwriting
totheRegistrar forconsideration bytheparties tothedispute.
V.Confidentiality
A. Apanelist shallnot:
(1)atanytimedisclose oruseanyinformation identified asconfidential orgovernment-
sensitive concerning theproceeding oracquired during theproceeding except forthe
purposes oftheproceeding, or
(2)inanycase, disclose oruseanysuchinformation togainpersonal advantage or
advantage forothers.
B. Apanelist shallnot:
(1)engage inexparte contacts concerning theproceeding, or
(2)make anypublic statements specifically addressing aproceeding ortheissues in
dispute inwhich thatperson isparticipating, untiltheDSBdecides whether toadopt
thereport intheproceeding, or
(3)disclose thecontents ofapanel report oranAppellate Body report, asthecase
maybe,prior toitsissuance.
VI. Application toOther Persons
A.These Rules shallalsoapply topersons serving asarbitrators pursuant toArticles 21.3(c)
or22.6oftheDSU, providing information ortechnical advice under Article 13.2oftheDSU, or
providing administrative orlegal support under Article 17.7oftheDSU. They shallalsoapply to
Secretariat officers designated toassist inapanel proceeding.
B.Thedisclosure statement made under Section IVabove byaSecretariat officer designated
toassist inapanel proceeding shallinclude hisorherinvolvement inanypastdisputes involving the
sameorsimilar subject matter. ASecretariat official whohasprovided advice toaMember concerning
themeasures atissue inadispute maynotparticipate inthepanel proceeding.PC/IPL/W/12
Page6
VII. Procedures Concerning Disqualification
Anycommunication onmatters covered bytheseRules frompersons other thanthose required
todisclose information under theserulesanddeterminations ofwhether apanelist orotherperson should
bedisqualified from further participation inthedispute settlement proceeding shallconform tothe
Decision oftheWTO General Council withrespect toprocedures concerning Rules ofEthical Conduct
inproceedings conducted pursuant totheUnderstanding onRules andProcedures Governing the
Settlement ofDisputes.PC/IPL/W/12
Page7
WORLD TRADE ORGANIZATION
[DISPUTE] DS__/-
DISCLOSURE STATEMENT
FOR PROSPECTIVE PANELISTS
1. IhavereadtheUnderstanding onRules andProcedures Governing theSettlement ofDisputes
(DSU) andtheRules ofEthical Conduct fortheDSU(Rules). Iamaware ofmyduties while serving
asapanelist toavoid impropriety andtheappearance ofimpropriety andtoobserve highstandards
ofconduct sothattheintegrity andimpartiality ofthedispute settlement process ispreserved.
2. Ihavereadtherequest fortheestablishment ofapanel withreference tothedispute atissue,
andhavemade allreasonable efforts todetermine whether Ihaveanyinterest, relationship ormatter
thatislikely toaffect myindependence orimpartiality orthatmight reasonably create anappearance
ofimpropriety oranapprehension ofbiasintheproceeding. Ihavedisclosed anysuchinterest,
relationship ormatter intheattachment tothisStatement, andhaveprovided anup-to-date curriculum
vitae.
Iamaware thatanappearance ofimpropriety oranapprehension ofbiasiscreated where a
reasonable person, withknowledge ofalltherelevant circumstances thatareasonable inquiry would
disclose, would conclude thatmyability tocarry outmyduties asapanelist withintegrity, impartiality
andcompetence isimpaired.
Inparticular, Ihavedisclosed intheattachment tothisStatement anyfinancial, business or
professional interest ofmine ormyemployer (ifmyemployer isother thanagovernment), business
associates, ormyimmediate family members in:
(a)theproceeding inwhich Ihavebeenrequested toserve oritsoutcome,
(b)anotherproceedingundertheAgreementEstablishingtheWorldTradeOrganizationinvolving
issues thatmaybedecided orthesubject matter oftheproceeding inwhich Ihavebeenrequested
toserve, and
(c)anydomestic court oradministrative proceeding involving theissues thatmaybedecided
orthesubject matter oftheproceeding inwhich Ihavebeenrequested toserve.PC/IPL/W/12
Page8
3. Irecognize that,during theproceeding, Ihaveacontinuing dutytomake allreasonable efforts
tobecome aware ofanyinterests, relationships ormatters referred tointhepreceding paragraph, and
todisclose them bycommunicating them inwriting totheRegistrar forconsideration bytheparties
tothedispute.
Signature
Name (Typed)
Date
RECEIVED
________________
Date
________________
Registrar
[ATTACHMENT]PC/IPL/W/12
Page9
WORLD TRADE ORGANIZATION
[DISPUTE] DS__/-
DISCLOSURE STATEMENT
FOR APPELLATE BODY MEMBERS
1. IhavereadtheUnderstanding onRules andProcedures Governing theSettlement ofDisputes
(DSU) andtheRules ofEthical Conduct fortheDSU(Rules). Iamaware ofmyduties while serving
ontheAppellate Body toavoid impropriety andtheappearance ofimpropriety andtoobserve high
standards ofconduct sothattheintegrity andimpartiality ofthedispute settlement process arepreserved.
2. Ihavereadthefactual portion ofthepanel'sreport andhavemade allreasonable efforts to
determine whether Ihaveanyinterest, relationship ormatter thatislikely toaffect myindependence
orimpartiality orthatmight reasonably create anappearance ofimpropriety oranapprehension of
biasintheproceeding. Ihavedisclosed anysuchinterest, relationship ormatter intheattachment
tothisStatement, andhaveprovided anup-to-date curriculum vitae.
Iamaware thatanappearance ofimpropriety oranapprehension ofbiasiscreated where a
reasonable person, withknowledge ofalltherelevant circumstances thatareasonable inquiry would
disclose, would conclude thatmyability tocarry outmyduties asanAppellate Body member with
integrity, impartiality andcompetence isimpaired.
Inparticular, Ihavedisclosed intheattachment tothisStatement anyfinancial, business or
professional interest ofmine ormyemployer, business associates, ormyimmediate family members
in:
(a)theproceeding inwhich Ihavebeenrequested toserve oritsoutcome,
(b)anotherproceedingundertheAgreementEstablishingtheWorldTradeOrganizationinvolving
issues thatmaybedecided orthesubject matter oftheproceeding inwhich Ihavebeenrequested
toserve, and
(c)anydomestic court oradministrative proceeding involving theissues thatmaybedecided
orthesubject matter oftheproceeding inwhich Ihavebeenrequested toserve.PC/IPL/W/12
Page10
3. Irecognize that,during theproceeding, Ihaveacontinuing dutytomake allreasonable efforts
tobecome aware ofanyinterests, relationships ormatters referred tointhepreceding paragraph, and
todisclose them bycommunicating them inwriting totheRegistrar forconsideration bytheparties
tothedispute.
Signature
Name (Typed)
Date
RECEIVED
________________
Date
________________
Registrar
[ATTACHMENT]PC/IPL/W/12
Page11
WORLD TRADE ORGANIZATION
[DISPUTE] DS__/-
DISCLOSURE STATEMENT
FOR SECRETARIAT OFFICERS
1. IhavereadtheUnderstanding onRules andProcedures Governing theSettlement ofDisputes
(DSU) andtheRules ofEthical Conduct fortheDSU(Rules). Iamaware ofmyduties while assisting
thepanel toavoid impropriety andtheappearance ofimpropriety andtoobserve highstandards of
conduct sothattheintegrity andimpartiality ofthedispute settlement process ispreserved.
2. Ihavereadtherequest fortheestablishment ofapanel withreference tothedispute atissue,
andhavemade allreasonable efforts todetermine whether Ihaveanyinterest, relationship ormatter
thatislikely toaffect myindependence orimpartiality orthatmight reasonably create anappearance
ofimpropriety oranapprehension ofbiasintheproceeding. Ihavedisclosed anysuchinterest,
relationship ormatter intheattachment tothisStatement, andhaveprovided anup-to-date curriculum
vitae.
Iamaware thatanappearance ofimpropriety oranapprehension ofbiasiscreated where a
reasonable person, withknowledge ofalltherelevant circumstances thatareasonable inquiry would
disclose, would conclude thatmyability tocarry outmyduties assisting thepanel withintegrity,
impartiality andcompetence isimpaired.
Inparticular, Ihavedisclosed intheattachment tothisStatement anyfinancial, business or
professional interest ofmine ormyimmediate family members in:
(a)theproceeding inwhich Ihavebeenrequested toserve oritsoutcome,
(b)another proceeding under theAgreement Establishing theWorld Trade Organization
involving issues thatmaybedecided orthesubject matter oftheproceeding inwhich
Ihavebeenrequested toserve, and
(c)anydomestic court oradministrative proceeding involving theissues thatmaybe
decided orthesubject matter oftheproceeding inwhich Ihavebeenrequested toserve.PC/IPL/W/12
Page12
3. Irecognize that,during theproceeding, Ihaveacontinuing dutytomake allreasonable efforts
tobecome aware ofanyinterests, relationships ormatters referred tointhepreceding paragraph, and
todisclose them bycommunicating them inwriting totheRegistrar forconsideration bytheparties
tothedispute.
Signature
Name (Typed)
Date
RECEIVED
________________
Date
________________
Registrar
[ATTACHMENT]PC/IPL/W/12
Page13
ANNEX 2
DRAFT DECISION WITH RESPECT TOTHE RULES OFETHICAL CONDUCT IN
PROCEEDINGS CONDUCTED PURSUANT TOTHE UNDERSTANDING ON
RULES AND PROCEDURES GOVERNING THE SETTLEMENT OFDISPUTES
1. AnyMember, oranyperson involved inaproceeding conducted pursuant totheUnderstanding
onRules andProcedures Governing theSettlement ofDisputes, possessing information suggesting
thepossibility ofaviolation oftheRules ofEthical Conduct fortheUnderstanding onRules and
Procedures Governing theSettlement ofDisputes shallpromptly provide theChairman oftheDispute
Settlement Body (DSB) withtheinformation onaconfidential basis.
2. Upon receipt ofinformation under paragraph 1,theChairman oftheDSBshallprovide the
information to,andshallconsult with, theparties tothedispute, theperson whoisthesubject ofthe
information, andasthecasemaybe,panelists, thepersons serving ontheAppellate Body hearing
theappeal, orthearbitrator appointed pursuant toArticle 21.3(c) or22.6oftheUnderstanding. If
thesubject oftheinformation isanemployee oftheSecretariat, theDSBChairman shallalsonotify
theDirector-General.
3. Theparties tothedispute shallconsult, andiftheyagree thatamaterial violation oftherules
hasoccurred, theperson whoisthesubject oftheinformation shall bedisqualified from further
consideration ofthedispute.
4. Iftheparties tothedispute donotagree, thematter shallbereferred totheDirector-General,
andtheperson whoisthesubject oftheinformation shallbedisqualified from further consideration
ofthedispute, unless theDirector-General, inconsultation withtheChairman oftheDSB andthe
Chairman oftherelevant Council orCommittee, decides thatnomaterial violation oftherules has
occurred.
5. Allpersons andMembers concerned shall endeavor toresolve matters involving possible
violations oftherulesasexpeditiously aspossible soasnottodelay completion ofproceedings under
theDSU.
6. Except totheextent otherwise necessary tocarry outthisdecision, allinformation concerning
possible andactual violations oftherules shallbekeptconfidential.