USTR Creates New Phase One Dispute Settlement Office

WASHINGTON, DC – As the new Phase One agreement with China is implemented, the Office of the U.S. Trade Representative (USTR) is outlining the process to deal with evaluation and dispute resolution. The new Bilateral Evaluation and Dispute Resolution Office will monitor China’s implementation of its commitments and will be responsible for working with China’s corresponding Bilateral Evaluation and Dispute Resolution Office to address disputes that arise over implementation matters. As part of the agreement, either country can formally initiate a dispute by submitting an “Appeal”. Consultations then take place in an attempt to resolve the dispute, first at the “designated official” level and then, if needed, at the Deputy United States Trade Representative-Vice Minister level and finally at the United States Trade Representative-Vice Premier level. If the dispute is not resolved through these consultations, the complaining party is allowed to take proportionate responsive action that it deems appropriate. The entire dispute resolution process will take approximately 90 days and will allow both countries to avoid dealing with the World Trade Organization (WTO) and its dispute settlement process.