The Revised Enforcement Regulation (No 2021/167) and Some Possible Effects on EU Trade Disputes

The European Union has enacted revisions to its previous Enforcement Regulation. This overview will describe some of the main changes introduced by the amendments and their possible effects on trade disputes between the EU and its opposing party. The Revised Enforcement Regulation has filled some lacuna in the aftermath of the decapitation of the Appellate Body and has broadened the scope of the previous Enforcement Regulation. Areas such as services and intellectual property rights have now come into the Regulation’s ambit. The Revised Enforcement Regulation is a part of the EU’s ‘Carrot and Stick’ strategy, which seeks to promote the use of the Multiparty Interim Appeal Arbitration Arrangement (MPIA) rather than parties escaping their responsibilities in the aftermath of a Panel report by appealing into ‘the void’. The Regulation has also expanded towards bilateral and regional trade agreements, including where provisions of Trade and Sustainable Development (TSD) are at stake. This overview will also briefly discuss the compatibility of the Revised Regulation with the EU’s World Trade Organization (WTO) obligations. The fact that other Members may be incentivized to join a rational and alternative means of dispute resolution is a successful outcome in itself. Whether the Revised Enforcement Regulation will ever be used is another question altogether. The lesser need for its use may actually signify the success of its existence. EU, Trade, Revised Enforcement Regulation, Disputes, WTO, MPIA, Regulation 2021/167, Appellate Body, Panel, Article 25 DSU, Implementation And Retaliation, Suspension of Concessions, International Law, Bilateral Trade Agreements, TSD