РУАЭСТ (RUAEST)
SHOULD THE WTO HAVE RULES ON FRIVOLOUS CLAIMS IN ITS DISPUTE SETTLEMENT UNDERSTANDING?
The globalization of economic relations gives rise to a number of international disputes. The necessity for an international dispute settlement organ is beyond doubt. However, the interdependence of politics and economics creates significant hurdles for the disputes settlement procedure. International courts not only settle disputes but also protect parties against groundless claims. This article addresses frivolous claims in international disputes and in WTO dispute settlements, in particular. It analyzes the legal nature of frivolous claims compared with de minimis claims, outlining the negative and destructive impact on international economic relations of the former. The author analyzes various approaches to handling frivolous claims in some international jurisdictions, including the ICJ as a well-known international dispute settlement body. Special attention is given to ICSID practice, which has many examples of dismissing frivolous claims. The author also analyzes the possibilities for adapting the equivalent mechanism in the WTO Dispute Settlement Understanding. The author suggests that a procedure for dismissing frivolous claim should be introduced at the consultation level and that the injured party should be entitled to compensation.