Since its inception in 1995, more than 200 disputes have been raised under the WTO Dispute Settlement Understanding (DSU). In spite of the obvious numerical success of the DS system of the WTO, in practice several shortcomings call for institutional and/or procedural change. This analysis deals with the economic aspects of the DS system. First, it turns out that the WTO DS system seems to be "biased". The larger and richer trading nations (USA, EU) are the main users of this system, either because of the larger involvement in world trade, or because the LDCs simply lack the legal resources. Second, in taking advantage of recent theoretical explanations of the WTO system in general (trade talks) and the DS system in particular (aberrations from WTO compliance can lead to trade wars) one can theoretically derive the relative robust result concerning the present practice of the WTO DS system: retaliation with tariffs is ineffective, distorts allocation and is difficult to control. This is also demonstrated in an CGE model analysis for the most popular disputes between the EU and the USA: the Hormones, the Bananas and the FSC cases. The major conclusion of our economic evaluation is that the DS system of retaliation should be changed towards a transfer-like retaliation system. (author's abstract) / Series: EI Working Papers / Europainstitut

摘 要 「世界貿易組織」（World Trade Organization，以下簡稱WTO）爭端解決下之貿易制裁，對於確保其任務之達成，扮演著十分重要的角色。惟自WTO成立後至今的數年間，所出現之「爭端解決機構」（The Dispute Settlement Body）授權貿易制裁之實例，透露了本機制之引發之問題，例如除了被制裁國強力反彈外，採取制裁措施之國自身也倍嚐其苦。針對上述問題，不論是學界或WTO會員國均有一些檢討改革的方案。 上述改革方案包括倡議以其他手段完全取代現行「爭端解決程序與規則瞭解書」（Understanding on Rules and Procedures Governing the Settlement of Disputes，以下簡稱DSU）之貿易制裁者，經過本文之分析，發現此等手段縱然取代DSU之貿易制裁，仍無法解決問題，蓋彼等或不具可行性、或有強制執行之困難。 鑑於貿易制裁對WTO規範遵循之確保，目前無可取代，故本文肯定其繼續存在之必要，同時強調貿易制裁之法制化並無礙WTO協定整體架構之邏輯一貫性。此外，法制化的結果，不但可確保貿易制裁受到監督，降低濫用的空間，更可藉由內建之定期檢討與修正，促使授權貿易制裁得以持續獲得改善，將負面影響降到最低。 / The authorization of trade sanction, which secures the objectives of the World Trade Organization (hereinafter the “WTO”) to be achieved, plays a very important role in WTO dispute settlement mechanism. However, since the establishment of the WTO, the DSB authorization of trade sanctions in some cases has revealed some problems. In some instances, the exercise of the trade sanctions triggers counter-measures of the respondent member, while in others, the complaint member also suffers for the trade sanction it imposes as authorized. In response to the aforementioned problems, commentators as well as WTO members have proposed some ideas of reform. The reform proposals include replacing the WTO trade sanctions with alternative measures. Nevertheless, after careful analyses of these proposals for alternatives, it is found in this thesis that the replacement of the WTO trade sanctions cannot resolve the aforementioned problems, in the sense that those alternatives suggested are not feasible or lack of ways to enforce them. In light of the fact that currently no feasible alternative can have the function as trade sanction has in assuring the compliance of the WTO rules, this thesis argues that it needs to be preserved. Besides, this thesis believes that it does not cause any conflict in the current WTO legal framework. To preserve it under the WTO framework, the abuse can be avoided through the surveillance of the DSB. Moreover, the built-in review mechanism, which will continue reform trade sanction measures, can minimize their negative effects.

At the dawn of democratic rule in the period 1994–1998, South Africa concluded 15 bilateral investment treaties (BITs), mostly with European nations. Some of these treaties were concluded before the Constitution of 1996. The country has since concluded a total of 47 BITs, with the majority not in effect as they were not ratified per the required constitutional processes. The policy decision to enter into BITs was taken by the African National Congress (ANC) government, led by the late former state president Nelson Mandela. The BITs were seen as an important guarantee to attract foreign investment into the country. The aim was to provide added assurance that foreign investments were safe in a democratic South Africa after many years of international isolation and sanctions. The conventional wisdom at the time was that BITs would increase foreign investor appetite to invest and the country would experience rising levels of foreign direct investment (FDI) as a result. This would facilitate economic growth and the transition of the country into the global economy. South Africa concluded BITs with seven of the top ten investor countries. In October 2013 the South African government cancelled a number of BITs with these European countries invested in South Africa. These countries – namely Belgium, Luxembourg, Spain, Switzerland, Germany and the Netherlands – complained of lack of consultation by the South Africans. On 1 November 2013 the Minister of Trade and Industry published, in Government Gazette No 36995, the Promotion and Protection of Investment Bill (PPIB or Investments Bill) as the proposed primary legislative instrument for the protection of foreign investments. This created much uncertainty among many European nations as well as in the United States of America (US), who were concerned about the motivation for cancelling bilateral treaties in favour of domestic legislation. BITs had been a part of the policy instruments regulating foreign investments in the country for over 20 years. Globally these treaties have been used to regulate foreign investments in a number of areas, and to provide protection to investments such as full protection and security, guaranteed pre-establishment rights, ease of repatriation of funds, most-favoured nation, fair and equitable treatment, national treatment and efficient dispute settlement mechanisms, among other provisions. In most cases international arbitration via the International Centre for the Settlement of Investment Disputes (ICSID) and other international arbitral mediums has been a standard provision in the treaties. This has allowed foreign investors to bypass host countries’ legal systems. The latter is believed to be a significant inducement for foreign investors, guaranteeing that should a dispute arise, or if an expropriation occurs, the investor could institute an international arbitral process against the host government. International arbitration is preferred by foreign investors for the reason that, in some cases, domestic courts may lack independence from the state, and may make partial rulings that do not protect investors. Furthermore, international arbitration processes are more efficient and produce rulings faster than domestic courts, which are usually burdened with bureaucratic procedures and limited resources. In cases where delay exacerbates injury, prompt resolution of disputes is preferable. This study evaluates the Investments Bill and the rationale applied by the government of South Africa to cancel BITs with major trade and investment partners in favour of this legislation. The thesis focuses on the Investments Bill, in light of the objective provided by the Department of Trade and Industry (DTI) for its enactment to law. The Investments Bill is subjected to a constitutional analysis to determine its compliance therewith. Comparisons are also made between the Investments Bill provisions and the prevailing international law principles on foreign investments. The Investments Bill is then critically evaluated against emerging trends on FDI regulation on the African continent to determine its congruence or lack thereof with best practice recommendations at regional economic community (REC) and African Union (AU) level. The thesis concludes with a set of policy recommendations to the DTI on how to improve South African policies related to the regulation of foreign investments taking into account the national imperative as well as Southern African Development Community (SADC) and other broader African continental objectives of harmonisation of FDI regulation, including the Tripartite Free Trade Area (FTA) implementation. The timing of this thesis is significant for South Africa. It adds to various deliberations that are taking place as the Investments Bill is set to makes its way through the legislative approval processes in 2015. The Bill has been met with opposition from some segments of society. Others have expressed support – including several state departments, the ANC, the South African Communist Party (SACP) and other political formations. The summary of findings contained in the thesis will be presented to the DTI to influence policy directions of the state in terms of foreign investment regulations. Should the Bill be enacted, the Minister of Trade and Industry is required to promulgate the dispute resolution mechanism that will govern investment disputes. The findings of this study will be important to the determination of how such dispute resolution mechanisms may function. Furthermore, in 2010 Cabinet instructed the DTI to develop a model new-generation BIT Template to be utilised by South Africa, should a compelling reason arise to enter into bilateral agreements. The research results will assist policy-makers to develop policies that are consistent with and align with the overarching Africa strategy that has been heavily promoted by South Africa. The country faces a number of challenges, particularly those related to low economic growth, high levels of poverty, unemployment and record levels of inequality. The gap between the rich and poor, in terms of the Gini coefficient, was 0,67 based on the World Bank Development Research Group Report of 2010. It is reported as one of the highest in the world and is believed to have worsened since the dawn of democracy. / Public, Constitutional and International Law / LL. D. (Public, Constitutional and International Law)

Esta dissertação concentra suas investigações nas contramedidas do direito internacional geral e da Organização Mundial do Comércio (OMC). No âmbito do direito internacional, estudou-se a essência política da sociedade internacional descentralizada, bem como a tendência do processo de fragmentação do direito internacional em direção a regimes mais regulados pelo direito. Além disso, investigou-se a tentativa de ampliação da normatização das contramedidas por meio do Projeto de Artigos sobre Responsabilidade Internacional do Estado de 2001. No âmbito do regime especial da OMC, analisou-se o maior adensamento jurídico das contramedidas como ponto culminante na fase de implementação das decisões no sistema de solução de controvérsias da OMC. Com base na avaliação sobre a necessidade de reforma do instituto das contramedidas da OMC, foram pesquisadas as principais propostas para sua modificação, buscando-se identificar a tentativa de redução do espaço político. A hipótese deste trabalho partiu da afirmação sobre a existência de uma tendência evolutiva no direito internacional geral e na OMC no que tange ao aumento da juridicidade do instituto das contramedidas. Entretanto, essa hipótese confirmou-se apenas parcialmente, pois a tentativa de aprimorar a regulamentação jurídica do instituto das contramedidas ocorre em meio à permanência de elementos políticos. / This thesis focused on countermeasures in general International Law and in the World Trade Organization (WTO). Regarding International Law, the thesis studied the political foundation of the decentralized international society, as well as the trend of fragmentation of International Law towards law-based regimes. Moreover, this thesis researched the attempt to regulate countermeasures through the Draft Articles on Responsibility of States for Internationally Wrongful Acts. Regarding the WTO special regime, the thesis analyzed its more law-based countermeasure as the last stage in the implementation of decisions in the WTO dispute settlement system. Based on the necessity of WTO countermeasures reform, the thesis investigated the main reform proposals, seeking to identify the attempt to reduce the political interference. The hypothesis of this research is the tendency towards a more law-based countermeasure in general International Law and in the WTO. However, this hypothesis has only been partially confirmed because political elements do not disappear despite the attempt to increase the legality of countermeasures.

Esta dissertação concentra suas investigações nas contramedidas do direito internacional geral e da Organização Mundial do Comércio (OMC). No âmbito do direito internacional, estudou-se a essência política da sociedade internacional descentralizada, bem como a tendência do processo de fragmentação do direito internacional em direção a regimes mais regulados pelo direito. Além disso, investigou-se a tentativa de ampliação da normatização das contramedidas por meio do Projeto de Artigos sobre Responsabilidade Internacional do Estado de 2001. No âmbito do regime especial da OMC, analisou-se o maior adensamento jurídico das contramedidas como ponto culminante na fase de implementação das decisões no sistema de solução de controvérsias da OMC. Com base na avaliação sobre a necessidade de reforma do instituto das contramedidas da OMC, foram pesquisadas as principais propostas para sua modificação, buscando-se identificar a tentativa de redução do espaço político. A hipótese deste trabalho partiu da afirmação sobre a existência de uma tendência evolutiva no direito internacional geral e na OMC no que tange ao aumento da juridicidade do instituto das contramedidas. Entretanto, essa hipótese confirmou-se apenas parcialmente, pois a tentativa de aprimorar a regulamentação jurídica do instituto das contramedidas ocorre em meio à permanência de elementos políticos. / This thesis focused on countermeasures in general International Law and in the World Trade Organization (WTO). Regarding International Law, the thesis studied the political foundation of the decentralized international society, as well as the trend of fragmentation of International Law towards law-based regimes. Moreover, this thesis researched the attempt to regulate countermeasures through the Draft Articles on Responsibility of States for Internationally Wrongful Acts. Regarding the WTO special regime, the thesis analyzed its more law-based countermeasure as the last stage in the implementation of decisions in the WTO dispute settlement system. Based on the necessity of WTO countermeasures reform, the thesis investigated the main reform proposals, seeking to identify the attempt to reduce the political interference. The hypothesis of this research is the tendency towards a more law-based countermeasure in general International Law and in the WTO. However, this hypothesis has only been partially confirmed because political elements do not disappear despite the attempt to increase the legality of countermeasures.