Comparing EU free trade agreements: dispute settlement

Comparing EU free trade agreements: dispute settlement

Published Jan 2004

Author

S. Szepesi

Publisher

Focus themes

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Provisions for dispute settlements in EU free trade agreements vary widely

The aim of this short paper is to provide a an overview of dispute settlement provisions laid out in the various trade agreements (FTAs) recently concluded by the European Union with developing countries.

As the paper points out, the scope of these provisions would appear to be related to the degree to which the agreements cover other issues:

  • the Euro-Mediterranean Association Agreements (MED) lack substantive provisions on investment, standards, market access for agricultural products and accordingly have very limited provisions on dispute settlement
  • the Trade and Development Cooperation Agreement (TDCA) with South Africa is broader in scope than the MED agreements, and this is reflected by its chapter on dispute settlement, which sets out clearer procedures
  • the trade agreement with Mexico goes some way further in limiting the parties' latitude for non-compliance with the agreement
  • the trade agreement with Chile has established a strong and detailed institutional structure to prevent or settle disputes between the parties.

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