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The present chapter focuses on the question of whether the Dispute Settlement Mechanism (DSM) included in the Pacific Alliance (PA), which comprises Chile, Colombia, Mexico and Peru, offers better and more effective guarantees, in the case of treaty breaches, than DSMs in other agreements between PA members. In other words, this chapter compares the PA’s DSM with the DSMs included in the bilateral free trade agreements (FTAs) previously signed between its members, as well as with the World Trade Organization (WTO) Dispute Settlement Understanding (DSU). This question arises because, despite the availability of multiple bilateral forums to solve commercial disputes, they appear useless. Experience has shown that States have preferred to appear before the WTO system, which has demonstrated a certain level of effectiveness that the bilateral DSUs had not. In this regard, this chapter will firstly focus on the relevant features of the PA’s DSM and compare them with the DSU. Secondly it will look at how the PA’s DSM interacts with the multilateral Dispute Settlement Body (DSB), in light of the importance of trade liberalization. Finally, conclusions are drawn regarding its relevance, taking into account the many overlapping international court systems in place, and how this situation could affect the implementation of the PA commercial Agreement by creating uncertainty among its members.
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Additional Protocol to the Economic Complementation Agreement N°24 (Colombia and Chile Free Trade Agreement) entry into force May 8th 2009.
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- The Pacific Alliance Dispute Settlement Mechanism: One More for the Heap
José Manuel Álvarez Zárate
Diana María Beltrán Vargas
- Chapter 13
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