26
discussed by Hoekman and Mavroidis (2000), for many of the smallest and poorest countries is their
inability to utilize the dispute-settlement process because of their lack of legal and informational
resources.
When we turn to measures to defend against alleged “unfair” trade, the problems are different. It
has long been recognized in trade agreements that trading partners should have the freedom to set aside
their trade obligations unilaterally under certain circumstances. Thus, the WTO Agreements permit
member countries to take action against predatory pricing, the subsidization of imported goods, or import
surges. The difficulty is that the freedom is open to abuse — as frequently happens when domestic
producers exploit the provisions to obtain protection for their industries. The provisions are especially
vulnerable to such abuses since they rely on administrative decisions within the importing countries for
their application. While efforts were made during the Uruguay Round to specify more carefully the
criteria and procedures that countries were obliged to adhere to in considering defensive action, it remains
a fact that the semi-judicial function is carried out by the administrative authorities in the importing
countries. Still more exact specification of the criteria and procedures to be applied under the
Agreements could further narrow the scope for administrative discretion in their application, but some
room for interpretation would inescapably remain. What would do still more to enhance procedural
fairness would be the transfer of the semi-judicial function to more independent bodies.
7. Fairness and the Doha Round
Having reviewed at some length the different concepts of fairness that in our view are of paramount
importance, we now consider how the issues of fairness can be applied in the context of the Doha Round.
We begin by discussing the principles of fairness that Stiglitz and Charlton (2004) recommend to be
applied in the Doha Round and that have attracted considerable attention. Thereafter, we draw upon the
two concepts of fairness — equality of opportunity and distributive equity — with reference to their
applicability to the Doha Round negotiations.
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