Towards Greater Effectiveness and Neutrality of Regional Dispute Mechanisms: Perspectives from the GCC’s Regional Trade Dispute Settlement Mechanism

This chapter examines regional efforts needed to build resilient and more effective dispute settlement mechanisms (DSMs) needed to reduce the disruptive impacts of trade restrictions on sustainable development. Drawing lessons from the challenges associated with DSMs in the Gulf Cooperation Council (GCC), the chapter explores salient reforms needed to advance their neutrality and effectiveness. The prevailing view under international law is that in the absence of a special agreement to settle a dispute, states are under no legal obligation to do so, or even to try to settle their dispute. Inasmuch as states may not be under a legal obligation to settle their disputes, there would hardly be any point in committing to a set of rules to begin with if they did not try to resolve disputes when they did arise. DSMs provide a means to both resolve disputes and enforce the commitments made in international trade agreements. If the commitments cannot be enforced, international trade agreements would be expected to break down. The GCC has two main DSMs for trade disputes between member states but many, both within and outside of the Community, have been calling for their reform. The 2017 dispute between Saudi Arabia, the UAE, Bahrain and Qatar which led to, amongst other things, the imposition of an embargo on all trade with Qatar, emphasises the need for this reform. A revision and improvement should happen, except the purpose for which the community was founded is obsolete. This chapter examines reforms needed to strengthen the DSMs to enhance their effectiveness in resolving trade related disputes. It will analyse the text of the DSMs in place for trade related matters between GCC states to determine whether they are effective mechanisms for the resolution of disputes in the 21st century. This analysis will end with recommendations for the reformation of the GCC's DSM.