Consultations

Consultations and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Consultations: Any GATT member that believes its trade interests have been adversely affected by changes in the trade policy of another member, or by failure of another member to live up to its obligations, may request consultations with the offending country:

* Article 22 stipulates that contracting parties must be receptive to requests for consultation “on any matter affecting the operation of the Agreement” –i.e., even if no violation of GATT rules or commitments is at issue. Article 22 consultations are important because they give members an opportunity to negotiate solutions to trade problems on a bilateral basis within the framework of the GATT. Should bilateral consultations under Article 22 fail to resolve a dispute, one or both of the parties may “raise the ante” by invoking Article 23.

* Article 23 also provides for bilateral consultations –as a prerequisite for invoking the multilateral dispute settlement process –if a GATT member believes that the actions or inaction of another member have caused nullification or impairment of benefits r expected under GATT .As such, Article 23 consultations represent a higher threshold of “seriousness” since they can culminate in multilateral review and recommendations from the GATT Council on how to resolve a dispute.

Article 22 Consultations or Article 23 Consultations and International Trade

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consultations