AUSTRALIA TO CHAIR WTO DISPUTE SETTLEMENT BODY

Australia's Ambassador to GATT, Mr Don Kenyon, has been appointed Chair of the World Trade Organisation (WTO) Dispute Settlement Body, the Minister for Trade, Senator Bob McMullan, said today.

Mr Kenyon's appointment was decided at the first WTO General Council in Geneva yesterday.

"The broad range of support from many developed and developing countries for Australia to chair the Dispute Settlement Body reflects our stature and credibility in the international trade arena and in the WTO," Senator McMullan said.

"It is a significant achievement for Australia.

"A major new institution in the multilateral trading system, the Dispute Settlement Body will bring together dispute settlement mechanisms currently under the various WTO Agreements, the existing GATT, and the new WTO Appellate Body.

"The GATT dispute settlement system has been critical to the successful functioning of a fair multilateral trading system and the orderly conduct of world trade.

"A strong international dispute settlement system is essential if the trading interests of small to medium sized countries such as Australia are to be safeguarded.

"It will be a challenge for the WTO to maintain the effectiveness of dispute settlement within a more extensive set of trade rules flowing from the Uruguay Round.

"The Body will also need to deal with a system which now embraces many more countries than under the GATT system.

"Mr Kenyon's appointment will not inhibit Australia's position in dispute settlement, or constrain our flexibility to take positions on issues of importance to us.

"When Australia has an interest in WTO disputes, Mr Kenyon will not serve as a panellist."

Mr Kenyon's appointment is initially for one year.

Further information: John Flannery, (06) 277 7420