WTO Dispute Panel Set For Qatar IP Case; Appellate Body Appointments Still Stuck

A World Trade Organization dispute settlement panel today was established on request of Qatar, which is challenging measures by the United Arab Emirates (UAE) taken in the name of anti-terrorism but which Qatar says unfairly violate its intellectual property rights and other WTO rules. Separately, also at today’s WTO Dispute Settlement Body meeting, members continued to be at odds over a closely watched disagreement on appointing new Appellate Body members.

The formation of the panel in the Qatar-UAE dispute was automatic on the second request by Qatar, after its first request was blocked in October (IPW, WTO/TRIPS, 24 October 2017).

Qatar reportedly repeated today that the UAE’s actions constitute a gross violation of rights and violate WTO rules, denying the country the benefits of WTO membership and preventing freedom of transit rights.

The UAE for its part reportedly argued again that security issues are outside the purview of the WTO, and its actions are permitted under various WTO agreements – including the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS, Art. 73) – which contain exceptions for national security reasons.

Bahrain and Saudi Arabia spoke in support of the UAE, and the United States argued that the matter is political and should not be resolved by the WTO. Others echoing the notion that the dispute does not belong at the WTO were Yemen, Canada, Korea, Egypt and China, according to sources. Canada suggested the matter be elevated for a decision by the WTO director general.

After the panel was formed, 21 WTO members reserved their third party rights to participate in the panel proceedings:  Australia, Russia, Norway, the Philippines, Singapore, Ukraine, Chinese Taipei, Guatemala, Bahrain, Saudi Arabia, Yemen, Canada, Korea, Egypt, the US, China, Honduras, Kazakhstan, Japan, the EU, and Afghanistan, the sources said.

The case is DS526: United Arab Emirates – measures relating to trade in goods and services, and trade-related aspects of intellectual property rights

Appellate Body

On another issue seen as a threat to the WTO dispute settlement system is the inability of WTO members to agree on how to replace departing members of the Appellate Body (IPW, WTO/TRIPS, 25 October 2017).

At today’s meeting, Mexico put forward a new proposal on behalf of 52 proponents to conduct a simultaneous launch of the selection process for the three open spots on the Appellate Body, according to sources. But the United States again was alone in objecting, the sources said. As of 11 December the normally seven-member body will be down to four members.

At this point, the issue, which has been stuck since February 2017, could carry over to the next meeting of the Dispute Settlement Body on 22 January 2018.