The EU/Korea FTA Panel Decision: An Overview and Some Personal Reflections

What the paper says

The Panel of Experts proceeding constituted under the ‘Trade and Sustainable Development’ chapter of the European Union (EU)-Korea FTA offers an important occasion to assess the contribution of the ‘sustainability’ chapters in recent trade agreements. The EU-Korea panel proceeding shows the close connection between trade and sustainability issues, and the utility of trade agreements in promoting and achieving the sustainability objectives. It also suggests the viability of a non-binding dispute settlement mechanism in dealing with sensitive matters in order to achieve a long-term solution in an amicable manner. At the same time, the panel proceeding also raises some structural issues for the consideration of states in their future trade agreements. States may consider adopting detailed procedural rules and structured logistical support in advance to ensure the completion of the proceeding in a shortened timeframe. They may also consider clarifying textual language in the agreements as regards the role of other treaties in the interpretation and application of the trade agreement at issue. Also, future trade agreements need to elaborate post-proceeding steps so as to achieve the goal of the panel proceeding. Future agreements may also wish to explore a more comprehensive review scheme through a sustainability chapter where the same or similar measures of both parties of trade agreements are reviewed comprehensively from the same legal standard so as to ensure a long-term solution of the matter between the parties in a symmetric manner.