IS WTO REGIME A LAW IN ITS TRUE SENSE?
Author
Mr. Saghir Ahmad, Advocate
Category
PTD
Publication Year
2004
IS WTO REGIME A LAW IN ITS TRUE SENSE <!--[if gte mso 10]> IS WTO REGIME A LAW IN ITS TRUE SENSE? By Mr. Saghir Ahmad, Advocate Are WTO agreements a law in true sense or like other regimes of international law it also provides only a set of guiding principles? Does it has teeth to enforce its principles in their true spirit? What binding sanctions can it exercise? Is it able to do justice with equality? Can it represent and protect interest of all the members in its functioning and decision-making? Is it a step forward towards a real global regime? Would it be resulting in failure or add something towards welfare and harmony of humanity? And lastly should it be resulting in failure or its success will be more useful? These are few of curiosities of the subjects of WTO and they do have a right to have an answer of these queries. This article is a part of efforts made in this behalf and it intends to raise a discussion from the technical point of view for the WTO as being a legal and judicial regime. Law and International Law: It has long been debated that whether international law is in fact a law? And does it qualify the meanings and essence attached to the concept of a law regarding its nature of obligatory bindings backed by effective sanctions? Black's Law Dictionary defines the law as, "that which must be obeyed and followed by citizens subject to sanctions or legal consequences is a law" and also as, "law, in its generic sense, is a body of rules of action or conduct prescribed by controlling authority, and having binding legal force" Technically speaking only that code or set of rule is called a real law which can have implemented its principles in their true spirit and also provides effective sanctions for its obligation coupled with punishments for violator and remedies for aggrieved ones. Most of the jurists have been of the view that regimes of international law (including UNO, GATT 1947, ICJ, Conventions and Pacts) do not qualify the above-mentioned conditions and they termed them as a mere set of principles without binding sanctity. It also lacks implementing procedure while it is an established fact that all substantive laws have always to be supported by procedural law. It is said that no law can be effective unless it is supported by an effective and comprehensive procedure for its implementation especially for settlement of disputes. Otherwise it becomes just a system of choice and whosoever is unwilling to, abide by its rules have a liberty to deviate from his liabilities. History is also a corroborative evidence of this view. We see that Charter of UNO has been violated time and again but the system is bitterly unable to bring the culprits to the Court of justice and remedy the grievances because the jurisdiction of the ICJ is not compulsory one. Similarly other international conventions and pacts are unable to perform in a way as to qualify the sanctity attributed to the word Law. Secondly it has always been the greatest concern that whether the system of international law is capable of effective protection of rights of all its members/subjects irrespective of their being weaker ones or stronger ones. The opinion was negative and most of the critics were of the view that it can't stop the stronger from tacking undue advantages of their superiority. It is a famous saying that law grinds the poor and riches rule the law. The most difficult area for any legal system is how to stop the abuse of process of law. It is a situation where law is violated in the name of law abiding and injustice is down in the name of justice. Here the jurists have created different legal maxims to be followed to curb such problems, like justice delayed is justice denied, no one can be condemned unheard, no one can be punished more than the quantum of his guilt, every individual is equal before law, justice hurried is justice buried, where there is a wrong there is a remedy, no civilized society or system can survive without justice, societies are outcome of a social contract where all of its members undertake to fulfil their duties for the effective protection of their own rights. Regimes of international law like UNO and its organs including ICJ are unable to implement these legal principles in their practical performance. Thirdly it was also debated that whether these international regimes are capable of adding something in harmonizing the States of globe towards a global society and for the prosperity of the humanity. Most of the opinions were negative and international conventions were not given due importance even by their signatories. When we see WTO (GATT 1994) in this context we find a detailed and comprehensive procedure for implementation of agreements signed under WTO. It also has a long list of trade remedies against possible injuries arising out of the system. It also has a comprehensive system for the settlement of the dispute between the members. Although there is no doubt that the GATT 1994 is an exhaustive code of law and provides detailed procedural rules for implementation and interpretation of its principles laid down in articles and so many complete agreements are incorporated regarding almost all of the important articles of GATT 1994. But what about its implementing authority especially in the event when stronger with undue advantages of their superiority tries to abuse the process of law. We have yet to see the extent it is able to dispense the justice in its true sense through binding the parties to their obligations. We have also to see whether the system is really capable of addressing the problems arising out of daily implementation of its rules, especially in the event when stronger are willing to take undue advantages of their superiority. To what extent it can exercise its mandatory jurisdiction and implement its findings. Here we will have a glimpse of the main objectives and principles of WTO, any possible violation of these principles, consequential remedies, dispute settlement procedure and its present performance to have an idea of its future success as a true legal regime. Main Objectives of WTO: Followings are the objectives, the WTO members agreed upon to achieve through mutual co-operation and through implementation system of WTO regime: Æ Raising standards of living; Æ Ensuring full employment, growing the volume of real income and effective demand; Æ Expanding the production of and trade in goods and services, by removing all types of trade barriers including customs tariff; Æ To achieve sustainable development and protection of the environment; Æ Taking full account of the needs of developing countries. Æ Elimination of all type of discrimination between the members through observance of "Most Favored Nation" & "National Treatment" principles. Æ To facilitate and monitor the implementation, administration and operation of the various trade agreements; Æ To provide effective and expeditious remedies for grievances arising out of implementation of WTO agreements; Æ To provide a forum for further multilateral trade negotiations and Æ To resolve trade disputes, through the Dispute Settlement Understandings. These objectives are based on the philosophy of market openness and trade liberalization, which aims at providing to the consumer best quality and price effective products and also to provide fuller opportunity to the producers and creator for exploiting such products. Injurious Voilations & Trade Remedies: Although WTO system is developed with the objectives of raising standards of living, ensuring full employment, growing volume of real income and effective demand, expanding the production of and trade in goods and services etc. But as we know that there have always been some powers who wish to get undue advantages out of any noble system through either their natural supremacy or abuse of the process. The fact is keenly recognized in WTO system and effective remedies are provided against any of such efforts for taking undue advantages or benefits. For instance, if a member, due to its inherent drawbacks, has too week economy to compete the developed economies in an open 'competition and its industry is at stake due to such liberalization, WTO allows him to take measures to safeguard his legitimate interests. Similarly if any country tries to misuse this liberalization and dumps its products in the market of any other member at lower or subsidies rates, for such situation WTO also provides effective remedies in the shape of retaliatory duties. Followings are remedies against possible injurious consequences: Æ Anti-dumping measures; Æ Subsidies and countervailing measures; Æ Safeguard measures; Æ Remedies under other trade-related agreements like, balance-of payments provisions, AOA, TRIMS and TRIPS etc. These remedies are supported by detailed agreements, which includes all the minute details for implementation in judicious manner. The agreements are adopted with all the details in domestic legislation of member countries. Member countries have also established domestic authorities to monitor and help implementation of these agreements. This very aspect of WTO regime makes it more effective as compared to other regimes of International Law. WTO authorizes member's domestic authorities to enforce these remedies and invoke the jurisdiction of dispute settlement body of WTO if the other side is not implementing the recommendations of such authority or is violating any other provision. Compulsory jurisdiction: As it has been discussed above DSU and trade remedy procedure have provided compulsory and exclusive jurisdictions to call the parties to appear before the legal authorities and clear their positions. If a party refuses to appear and join the proceeding then the authorities have definite powers to proceed against him on the basis of best information available. He who will not surrender till a prescribed time before the authorities has to bear the consequences. That's why; no such case is reported till now where a party complained against at any level might have refused to appear and clarify his position. On the other hand Courts and Tribunals in other regimes of international law have to seek willingness of the parties and nor can compel their attendance neither can enforce their recommendations against their will. So many examples can be given in this behalf like Palestine issue, aggression by different country, in violation of Article 2 of UN Charter, subsequent cases and their fate. In most of the cases we see the international law as a failure. But so for as the settlement of disputes under WTO is concerned we can find many examples where a weaker party was able to avail the remedy against a stronger party. Amongst so many others, the example of Shrimps Turtle case' is a best one, where parties like Pakistan and Bangladesh were able to enforce the available remedy against USA. Detailed and comprehensive procedure: As compared to other international regimes including ICJ, procedural code incorporated for WTO is very much comprehensive and have all the details. GATT 1994 is an exhaustive code of law and provides detailed procedural rules for implementation and interpretation , of its principles laid down in articles and so many complete agreements are incorporated regarding almost all of the important Articles of GATT 1994. It describes most of the issue of implementation and enforcement in reasonable details and also provides grounds and guidelines for the interpretation and construction of equitable solutions in case of any possible controversy between the parties. It is only because WTO regime is an out come of a long negotiation spread over almost more than a half century; during which historical experiments of all relevant international regimes have been discussed and taken care of. This is an evolutionary success and its comprehensiveness shows the sincerity of its creators/ developers. Right to be heard: As it has already been discussed that no legal system can dispense the justice or exist for a long time without following the important legal principle, "Nobody can be condemned unheard". The maxim is very keenly followed by WTO regime and it is made obligatory for all the officials' and authorities, acting at any level, that before making any determination or taking any step they must inform all the interested parties well in time and facilitate them to clarify their position and argue their case. Opportunity to defend and time-frame: The authorities are also bound to provide all information to and to facilitate all the parties to defend their case by tendering all the informations and evidences available to them and submitting their defensive arguments. An obligatory time frame is prescribed for defendant's reply at all the stages. Although for some stage a longer time is provided but yet it is nearer to have a balance between two famous sayings i.e. "justice delayed is justice denied" and "justice hurried is justice buried". Equality before law The maxim "all the parties are equal before the law" is also upheld in all the agreements and superior powers have not been provided any extra right or privileges like have been the case in UNO. Here there is no veto and all the parties have equal right and powers to negotiate, vote, adjudicate and invoke the WTO regime against the others. Recent decision under WTO dispute settlement system in US Steel Duty Case is a hall-mark in this behalf. A super power like USA was literly forced to bow before judicial decision under the system and stop violating the rights of other partners. Rule based system: WTO regime is based on specific rules prepared with consensus of all the parties under agreements signed by them. It simply operates under these agreed rules and any thing done out of the four corners of these rules is not legally binding upon other members rather they have definite remedies against any loss or danger caused due to such violation. Balancing between natural superiority and weakness: WTO has not only upheld the principle of equality before law but it has gone a step forward to balance the natural supremacy of big powers with economy, of scale as against the smaller economy nations, by introducing the provisions of special & preferential treatment for developing and least developed nations. It has also provided a long grace/exceptional period for such nations to be able to cope with developed powers. It is urged that big power should always take special care of developing nation and try to restrain from taking any retaliatory measures against them. Besides WTO has provided great facilities and funds for human resource development and advancement of industries of such nations so that they may be able to face the outcomes of open competition. Decision Making Process: Another distinct characteristic of WTO system is its decision making process which is based on the democratic principle of one member one vote and decisions with fuller consensus. WTO rules require full consensus for decision making and no member can dominate the proceedings. Similarly all members have equal and only vote and no one have veto power or extra voting right. On the other hand creator of UNO have created discriminating rules and reserved for them special powers and privileges in decision making and other matters, which lead' to dominance of some power on the UNO regime. Such discriminating rules in fact made the system paralyzed as such international regimes became unable to perform judiciously and failed to qualify as to law in true sense. WTO regime in this aspect is also democratic, representative and legal. There are some voices for change in the decision making process. It should be noted that although this is very tiring business to have a consensus of all the members on an issue but it is in fact key to success of the system and it should not be reversed. General Most-Favoured-Nation Treatment: One of the most important basic principles of the WTO is MFN treatment, which means that all the members should provide to other members the treatment accorded to nation which is most favoured one. Article 1 of GATT 1994 states as, "With respect to customs duties and charges of any kind imposed on or in connection with importation or exportation or imposed on the international transfer of payments for imports or exports, and with respect to the method of levying such duties and charges, and with respect to all rules and formalities in connection with importation and exportation, and with respect to all matters referred to in paragraphs 2 and 4 of Article III, any advantage, favour, privilege or immunity granted by any contracting party to any product originating in or destined for any other country shall be accorded immediately and unconditionally to the like product originating in or destined for the territories of all other contracting parties". This legal provision is implemented generally and stops any type of discrimination against any member irrespective of his being stronger or weaker one. Most of other international law lack such comprehensive provision for discouraging all type of biases and discrimination. National Treatment on Internal Taxation and Regulation: "National Treatment" is the second important principle of WTO embodied in Article III of GATT 1994. It also discourages all type of biases and discrimination between the domestic products and product coming from any other member's territory. It is stated as, "The products of the territory of any contracting party imported into the territory of any other contracting party shall not be subject, directly or indirectly, to internal taxes or other internal charges of any kind in excess of those applied, directly or indirectly, to like domestic products. Moreover, no contracting party shall otherwise apply internal taxes or other internal charges to imported or domestic products in a manner contrary to the principles set forth in paragraph .The products of the territory of any contracting party imported into the territory of any other contracting party shall be accorded treatment no less favourable than that accorded to ' like products of national origin in respect of all laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use". Post Cancun Situation: Although Cancun Ministerial Meeting could not produce expected results and it is predicted that the future of this regime is endangered. It is also predicted that it is an end to multilateral negotiation and now there will be bilateral arrangements, which are not as such effective. But when we see the history of WTO it transpires that this is not the first chance of such deadlock rather many a time some powers tried to' do so for their vested interests but the system was not abundant and it continued to march. forward. Reason is' only the effectiveness of the multilateral system. Which is also evident from the fact that prior to this multilateral system all the nations had the choice of entering in mutually agreed bilateral arrangements and many of such arrangements were done but the purposes could not be served till the creation of this multilateral system. Most recent post Cancun developments are also strongly corroborating this argument. APEC a regional arrangement, has reached to a consensus to resume multilateral negotiation rather to prefer the bilateralism. Similarly during the visit of Director General of WTO to Pakistan and all other roundtable discussions and seminars all over the world, it has continuously been emphasized on resuming multilateral negotiations. In these circumstances one should not have doubt in continuity and revival of the multilateralism. Successful step towards Harmonization: An Ex-Director General of WTO has declared WTO as an important step towards globalization. Once a writer declared this statement as an illegal and mistaken marriage of WTO with Globalization but now it not only seems very much legal and correct marriage rather WTO in fact took birth for this very purpose. Keeping in view the above discussion it can be hoped that WTO regime is a very successful step in evolutionary process of harmonization of humanity and globalization rather it has bring the destination very much nearer and it's a matter of just few decades to reach the ultimate destination . It has given a wider rights to weaker of invoking the judicial system for redressal against any form of injustice or abuse of power at-least in one of the important sectors of human civilization i.e. trade and commerce. Successes in this regime will of course force the other fields of international law to follow it. So as to tiring humanity across a wider Social Contract and a great union of nations can be done. Regarding the clash of civilization none needs to worry. Because basic norms and principles of all the civiliza tions/religions are based on general welfare of humanity and we know that majority of humanity can't agree upon an unjust and wrong law. Human vision and wisdom is near to a stage where it can defeat the hypercritical slogans and is able to find out that in what principles its real welfare lies. Where, rising above all kinds of biases, it can perfectly differentiate between right and wrong. It is natural and universal truth that consensus of humanity will only be in complete, right and perfect code of conduct and we should not have any doubt in it. Law in true sense with binding force: Now one says that international law developed under WTO regime is able to qualify the definition of law in its true sense. WTO system may provide a true judicial system. Which may be able to uphold the justice and rule of law in international trading system, which will ultimately result in interpretation, development and evolution of more effective and authoritative judicial system. It may also result in further harmonization and unity of nations of the world. Keeping in view "The Social Contract Theory" of law wherein Jean Jacques Rossue establishes and elaborates the evolutionary stages of development of human civilizations and their legal systems. He argues that human is a social animal and can't survive without a society; secondly he argued that after a long experience man came to know that unless he respects rights, needs, and desires of others he himself can't enjoy all these. For this he has to take some obligations and to withdraw from some desires for attainment of others as such man entered into a Social Contract, whereby men established a code of conduct comprising of rights and obligation. When this code of conduct was implemented, problems arose. Those were solved through interpretation, which resulted in the establishment of more procedural regime and organs. These developments remained continued till man of our modern time was able to develop perfect laws and legal system for their implementation resulting in foundation of civilized States. According to him this social contract is also in a process of further development. J. J. Rossue and his political theories enjoys consensus in western political thoughts and practice. Islamic political thoughts and knowledge also recognizes the evolutionary process of development of human thoughts and civilization. We know that 1,24,000 Messengers (PBUT) of God Almighty and three codes of conduct (Shorae) were sent till the humanity could have able to receive the complete code of life which is eternal, global, complete and perfect. Which requires Momeneen (faithful) to bring whole the humanity under one flag. This code urged them that there should be a team amongst you who orders for welfare and prohibit from non-desirous things. It told them there is no geographical boundary for you; whole the world is your homeland and all of the humanity is your responsibility. Islamic thoughts have firm stand in bringing whole the humanity under one flag. Some of the jurists consider this a real urge for globalization & harmonization and a strong argument for the eternity & perfection of the last Divine code. Suggestions: WTO regime is out come of an exhaustive negotiation spread over more than half a century and all historical experiments in different international regimes have been kept in view while preparing the final agreement. Although the system seems to be comprehensive & efficient but many suggestions are there for further betterment of the system. Amongst those, following few suggestions may also be considered: 1. This system lacks extraordinary speedy remedy in emergency like cases or in cases where a violation for a short period is sufficient to fulfil the objectives of violator or cause irreparable losses to the opponent. Here should be some provision of direct action from WTO to restrain such violation. Some temporary injunction/recommendation should be introduced to be effective from the very first day of grievance. It may be conditional like levying a duty or submitting a financial bond with WTO/ DSB, to be refunded to the party proving his case. 2. It is felt that investigating authorities may have some inclinations or favours towards their domestic industries. Secondly evidence and recommendation from a prosecuting side are not considered to be a very good piece of evidence and in criminal law statements and recommendations of prosecution are not reliable unless corroborated- by some independent piece of evidence. It is suggested that if a neutral observer from WTO is sent to join the investigation of domestic authorities it may provide more equitable and reliable recommendations. 3. Forms of safeguard measures are not prescribed in WTO regime. It will be very much useful if forms, duration & limitation for all possibly known safeguards may' be specified like specification for different type of subsidies. It will not only help in stopping any abuse of process in this sector but also provide guidance for new measures arising out of' any new situation. 4. It is agreed that, any member applying a safeguard measure should provide an equalant concession to the opponent member. It is not a proper rule and it must be amended otherwise it will be reducing sanctity attached to this remedy and may also cause multiplicity of litigation. 5. While adopting report of a panel or appellate body, DSB have power to remand the case to panel but this provision does not provide sufficient rules to be followed for remanded hearings. It needs to be more elaborative and comprehensive. 6. Another important issue is that if a person is not afforded an opportunity to be heard or any of other defects therein, what will be the fate of the recommendations or investigations so made. It needs to be interpreted and elaborated. One important principle to stop the abuse of process in this regard is to make any remedy provided in this behalf conditional upon that such procedural violation must had been pointed out during allegedly defective proceedings. 7. Although there is emphasise that the proceeding should not be unduly influenced or affected through political or other pressurizing. It is also urged that WTO regime should be free of any type of pressurizing from other influential institution like UNO, WB, IMF & NATO etc. Some individual developed members may also influence the weaker economies dependant upon their funding and supports. But there are no punitive provisions for such intruders. It will be very much useful if huge fines are prescribed for any of such influencing efforts etc. The article is a summary of the study project, as part of PGD WTO & IPR Laws done at IIU Islamabad, by the author, who is Director Law of "Consumers Association of Pakistan" and also working as associated consultants of TRAITS centre for WTO and Business Studies, Islamabad and trade liberalization, which aims at providing to the consumer best quality and price effective products and also to provide fuller opportunity to the producers and creator for exploiting such products. Injurious Violations & Trade Remedies: Although WTO system is developed with the objectives of raising standards of living, ensuring full employment, growing volume of real income and effective demand, expanding the production of and trade in goods and services etc. But as we know that there have always been some powers who wish to get undue advantages out of any noble system through either their natural supremacy or abuse of the process. The fact is keenly recognized in WTO system and effective remedies are provided against any of such efforts for taking undue advantages or benefits. For instance, if a member, due to its inherent drawbacks, has too week economy to compete the developed economies in an open competition and its industry is at stake due to such liberalization, WTO allows him to take measures to safeguard his legitimate interests. Similarly if any country tries to misuse this liberalization and dumps its products in the market of any other member at lower or subsidies rates, for such situation WTO also provides effective remedies in the shape of retaliatory duties. Followings are remedies against possible injurious consequences: Æ Anti-dumping measures; Æ Subsidies and countervailing measures; Æ Safeguard measures; Æ Remedies under other trade-related agreements like, balance of payments provisions, AOA, TRIMS and TRIPS etc. These remedies are supported by detailed agreements, which includes all the minute details for implementation in judicious manner. The agreements are adopted with all the details in domestic legislation of member countries. Member countries have also established domestic authorities to monitor and help implementation of these agreements. This very aspect of WTO regime makes it more effective as compared to other regimes of International Law. WTO authorizes member's domestic authorities to enforce these remedies and invoke the jurisdiction of dispute settlement body of WTO if the other side is not implementing the recommendations of such authority or is violating any other provision. Compulsory jurisdiction: As it has been discussed above DSU and trade remedy procedure have provided compulsory and exclusive jurisdictions to call the parties to appear before the legal authorities and clear their positions. If a party refuses to appear and join the proceeding then the authorities have definite powers to proceed against him on the basis of best information available. He who will not surrender till a prescribed time before the authorities has to bear the consequences. That's why; no such case is reported till now where a party complained against at any level might have refused to appear and clarify his position. On the other hand Courts and Tribunals in other regimes of international law have to seek willingness of the parties and nor can compel their attendance neither can enforce their recommendations against their will. So many examples can be given in this behalf like Palestine issue, aggression by different country, in violation of Article 2 of UN Charter, subsequent cases and their fate. In most of the cases we see the international law as a failure. But so for as the settlement of disputes under WTO is concerned we can find many examples where a weaker party was able to avail the remedy against a stronger party. Amongst so many others, the example of Shrimps Turtle case is a best one, where parties like Pakistan and Bangladesh were able to enforce the available remedy against USA. Detailed and comprehensive procedure: As compared to other international regimes including ICJ, procedural code incorporated for WTO is very much comprehensive and have all the details. GATT 1994 is an exhaustive code of law and provides detailed procedural rules for implementation and interpretation of its principles laid down in articles and so many complete agreements are incorporated regarding almost all of the important Articles of GATT 1994. It describes most of the issue of implementation and enforcement in reasonable details and also provides grounds and guidelines for the interpretation and construction of equitable solutions in case of any possible controversy between the parties. It is only because WTO regime is an out come of a long negotiation spread over almost more than a half century; during which historical experiments of all relevant international regimes have been discussed and taken care of. This is an evolutionary success and its comprehensiveness shows the sincerity of its creators/developers. Right to be heard As it has already been discussed that no legal system can dispense the justice or exist for a long time without following the important legal principle, "Nobody can be condemned unheard". The maxim is very keenly followed by WTO regime and it is made obligatory for all the officials' and authorities, acting at any level, that before making any determination or taking any step they must inform all the interested parties well in time and facilitate them to clarify their position and argue their case. Opportunity to defend and time-frame: The authorities are also bound to provide all information to and to facilitate all the parties to defend their case by tendering all the informations and evidences available to them and submitting their defensive arguments. An obligatory time frame is prescribed for defendant's reply at all the stages. Although for some stage a longer time is provided but yet it is nearer to have a balance between two famous sayings i.e. "justice delayed is justice denied" and "justice hurried is justice buried". Equality before law The maxim "all the parties are equal before the law" is also upheld in all the agreements and superior powers have not been provided any extra right or privileges like have been the case in UNO. Here there is no veto and all the parties have equal right and powers to negotiate, vote, adjudicate and invoke the WTO regime against the others. Recent decision under WTO dispute settlement system in US Steel Duty Case is a hall-mark in this behalf. A super power like USA was literly forced to bow before judicial decision under the system and stop violating the rights of other partners. Rule based system: WTO regime is based on specific rules prepared with consensus of all the parties under agreements signed by them. It simply operates under these agreed rules and any thing done out of the four corners of these rules is not legally binding upon other members rather they have definite remedies against any loss or danger caused due to such violation. Balancing between natural superiority and weakness: WTO has not only upheld the principle of equality before law but it has gone a step forward to balance the natural supremacy of big powers with economy of scale as against the smaller economy nations, by introducing the provisions of special & preferential treatment for developing and least developed nations. It has also provided a long grace/exceptional period for such nations to be able to cope with developed powers. It is urged that big power should always take special care of developing nation and try to restrain from taking any retaliatory measures against them. Besides WTO has provided great facilities and funds for human resource development and advancement of industries of such nations so that they may be able to face the outcomes of open competition. Decision Making Process: Another distinct characteristic of WTO system is its decision making process which is based on the democratic principle of one member one vote and decisions with fuller consensus. WTO rules require full consensus for decision making and no member can dominate the proceedings. Similarly all members have equal and only vote and no one have veto power or extra voting right. On the other hand creator of UNO have created discriminating rules and reserved for them special powers and privileges in decision making and other matters, which lead' to dominance of some power on the UNO regime. Such discriminating rules in fact made the system paralyzed as such international regimes became unable to perform judiciously and failed to qualify as to law in true sense. WTO regime in this aspect is also democratic, representative and legal. There are some voices for change in the decision making process. It should be noted that although this is very tiring business to have a consensus of all the members on an issue but it is in fact key to success of the system and it should not be reversed. General Most-Favoured-Nation Treatment: One of the most important basic principles of the WTO is MFN treatment, which means that all the members should provide to other members the treatment accorded to nation which is most favoured one. Article I of GATT 1994 states as, "With respect to customs duties and charges of any kind imposed on or in connection with importation or exportation or imposed on the international transfer of payments for imports or exports, and with respect to the method of levying such duties and charges, and with respect to all rules and formalities in connection with importation and exportation, and with respect to all matters referred to in paragraphs 2 and 4 of Article III, any advantage, favour, privilege or immunity granted by any contracting party to any product originating in or destined for any other country shall be accorded immediately and unconditionally to the like product originating in or destined for the territories of all other contracting parties". This legal provision is implemented generally and stops any type of discrimination against any member irrespective of his being stronger or weaker one. Most of other international law lack such comprehensive provision for discouraging all type of biases and discrimination. National Treatment on Internal Taxation and Regulation: "National Treatment" is the second important principle of WTO embodied in Article III of GATT 1994. It also discourages all type of biases and discrimination between the domestic products and product coming from any other member's territory. It is stated as, "The products of the territory of any contracting party imported into the territory of any other contracting party shall not be subject, directly or indirectly, to internal taxes or other internal charges of any kind in excess of those applied, directly or indirectly, to like domestic products. Moreover, no contracting party shall otherwise apply internal taxes or other internal charges to imported or domestic products in a manner contrary to the principles set forth in paragraph. The products of the territory of any contracting party imported into the territory of any other contracting party shall be accorded treatment no less favourable than that accorded to like products of national origin in respect of all 'laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use". Post Cancun Situation: Although Cancun Ministerial Meeting could not produce expected results and it is predicted that the future of this regime is endangered. It is also predicted that it is an end to multilateral negotiation and now there will be bilateral arrangements, which are not as such effective. But when we see the history of WTO it transpires that this is not the first chance of such deadlock rather many a time some powers tried to do so for their vested interests but the system was not abundant and it continued to march forward. Reason is only the effectiveness of the multilateral system. Which is also evident from the fact that prior to this multilateral system all the nations had the choice of entering in mutually agreed bilateral arrangements and many of such arrangements were done but the purposes could not be served till the creation of this multilateral system. Most recent post Cancun developments are also strongly corroborating this argument. APEC a regional arrangement, has reached to a consensus to resume multilateral negotiation rather to prefer the bilateralism. Similarly during the visit of Director General of WTO to Pakistan and all other roundtable discussions and seminars all over the world, it has continuously been emphasized on resuming multilateral negotiations. In these circumstances one should not have doubt in continuity and revival of the multilateralism. Successful step towards Harmonization: An Ex-Director General of WTO has declared WTO as an important step towards globalization. Once a writer declared this statement as an illegal and mistaken marriage of WTO with Globalization but now it not only seems very much legal and correct marriage father WTO in fact took birth for this very purpose. Keeping in view the above discussion it can be hoped that WTO regime is a very successful step in evolutionary process of harmonization of humanity and globalization rather it has bring the destination very much nearer and it's a matter of just few decades to reach the ultimate destination . It has given a wider rights to weaker of invoking the judicial system for redressal against any form of injustice or abuse of power at-least in one of the important sectors of human civilization i.e. trade and commerce. Successes in this regime will of course force the other fields of international law to follow it. So as to bring humanity across a wider Social Contract and a great union of nations can be done. Regarding the clash of civilization none needs to worry. Because basic norms and principles of all the civiliza tions/religions are based on general welfare of humanity and we know that majority of humanity can't agree upon an unjust and wrong law. Human vision and wisdom is near to a stage where it can defeat the hypercritical slogans and is able to find out that in what principles its real welfare lies. Where, rising above all kinds of biases, it can perfectly differentiate between right and wrong. It is natural and universal truth that consensus of humanity will only be in complete, right and perfect code of conduct and we should not have any doubt in it. Law in true sense with binding force: Now one says that international law developed under WTO regime is able to qualify the definition of law in its true sense. WTO system may provide a true judicial system. Which may be able to uphold the justice and rule of law in international trading system, which will ultimately result in interpretation, development and evolution of more effective and authoritative judicial system. It may also result in further harmonization and unity of nations of the world. Keeping in view "The Social Contract Theory" of law wherein Jean Jacques Rossue establishes and elaborates the evolutionary stages of development of human civilizations and their legal systems. He argues that human is a social animal and can't survive without a society; secondly he argued that after a long experience man came to know that unless he respects rights, needs, and desires of others he himself can't enjoy all these. For this he has to take some obligations and to withdraw from some desires for attainment of others as such man entered into a Social Contract, whereby men established a code of conduct comprising of rights and obligation. When this code of conduct was implemented, problems arose. Those were solved through interpretation, which resulted in the establishment of more procedural regime and organs. These developments remained continued till man of our modern time was able to develop perfect laws and legal system for their implementation resulting in foundation of civilized States. According to him this social contract is also in a process of further development. J. J. Rossue and his political theories enjoys consensus in western political thoughts and practice. Islamic political' thoughts and knowledge also recognizes the evolutionary process of development of human thoughts and civilization. We know that 1,24,000 Messengers (PBUT) of God Almighty and three codes of conduct (Shorae) were sent till the humanity could have able to receive the complete code of life which is eternal, global, complete and perfect. Which requires Momeneen (faithful) to bring whole the humanity under one flag. This code urged them that there should be a team amongst you who orders for welfare and prohibit from non-desirous things. It told them there is no geographical boundary for you; whole the world is your homeland and all of the humanity is your responsibility. Islamic thoughts have firm stand in bringing whole the humanity under one flag. Some of the jurists consider this a real urge for globalization & harmonization and a strong argument for the eternity & perfection of the last Divine code. Suggestions: WTO regime is out come of an exhaustive negotiation spread over more than half a century and all historical experiments in different international regimes have been kept in view while preparing the final agreement. Although the system seems to be comprehensive & efficient but many suggestions are there for further betterment of the system. Amongst those, following few suggestions may also be considered: 1. This system lacks extraordinary speedy remedy in emergency like cases or in cases where a violation for a short period is sufficient to fulfil the objectives of violator or cause irreparable losses to the opponent. Here should be some provision of direct action from WTO to restrain such violation. Some temporary injunction/recommendation should be introduced to be effective from the very first day of grievance. It may be conditional like levying a duty or submitting a financial bond with WTO/ DSB, to be refunded to the party proving his case. 2 It is felt that investigating authorities may have some inclinations or favours towards their domestic industries. Secondly evidence and recommendation from a prosecuting side are not considered to be a very good piece of evidence and in criminal law statements and recommendations of prosecution are not reliable unless corroborated by some independent piece of evidence. It is suggested that if a neutral observer from WTO is sent to join the investigation of domestic authorities it may provide more equitable and reliable recommendations. 3. Forms of safeguard measures are not prescribed in WTO regime. It will be very much useful if forms, duration & limitation for all possibly known safeguards may be specified like specification for different type of subsidies. It will not only help in stopping any abuse of process in this sector but also provide guidance for new measures arising out of any new situation. 4. It is agreed that any member applying a safeguard measure should provide an equalant concession to the opponent member. It is not a proper rule and it must be amended otherwise it will be reducing sanctity attached to this remedy and may also cause multiplicity of litigation. 5. While adopting report of a panel or appellate body, DSB have power to remand the case to panel but this provision does not provide sufficient rules to be followed for remanded hearings. It needs to be more elaborative and comprehensive. 6. Another important issue is that if a person is not afforded an opportunity to be heard or any of other defects therein, what will be the fate of the recommendations or investigations so made. It needs to be interpreted and elaborated. One important principle to stop the abuse of process in this regard is to make any remedy provided in this behalf conditional upon that such procedural violation must had been pointed out during allegedly defective proceedings. 7. Although there is emphasise that the proceeding should not be unduly influenced or affected through political or other pressurizing. It is also urged that WTO regime should be free of any type of pressurizing from other influential institution like UNO, WB, IMF & NATO etc. Some individual developed members may also influence the weaker economies dependant upon their funding and supports. But there are no punitive provisions for such intruders. It will be very much useful if huge fines are prescribed for any of such influencing efforts etc. The article is a summary of the study project, as part of PGD WTO & IPR Laws done at IIU Islamabad, by the author, who is Director Law of "Consumers Association of Pakistan" and also working as associated consultants of TRAITS centre for WTO and Business Studies, Islamabad.