WTO disputes explained as report puts Newcastle United takeover in further doubt

The World Trade Organisation's confirmation of a dispute against Saudi Arabia could provide another obstacle to a buy-out of the Magpies

A World Trade Organisation dispute has cast fresh doubt over Saudi Arabia's Public Investment Fund’s proposed takeover of Newcastle United.

The dispute centres around questions regarding Saudi Arabia and TV piracy after claims that the WTO’s report looking into TV piracy in the Middle East has found that the Saudi Arabia government is behind it.

The WTO have confirmed to Chronicle Live that a panel has been looking into the actions of TV piracy within Saudi Arabia since December 2018 - three months after neighbouring Qatar raised concerns.

The dispute could provide a major obstacle to the takeover of the Magpies, which has already proven to be a controversial matter, getting the green light from the Premier League.

Here’s a look at the process undertaken during the dispute, and what it could mean for Saudi Arabia and Qatar.

How does a dispute arise?

According to the WTO: “A dispute arises when a member government believes another member government is violating an agreement or a commitment that it has made in the WTO.”

In this case, it’s Qatar that has initiated the dispute against Saudi Arabia, regarding the protection of intellectual property rights.

How is a dispute settled?

It’s down to the Dispute Settlement Body (DSB), which consists of all WTO members, to hear the case.

The DSB establishes panels of experts to consider the case, and to accept or reject the panels’ findings or the results of an appeal.

It then monitors the implementation of the rulings and recommendations, and has the power to authorise retaliation should a country not comply with a ruling.

How long does it take to settle a dispute?

The settlement process is a lengthy procedure, with each stage taking weeks, if not months.

The WTO aim to settle a dispute in around a year, assuming there are no appeals to the rulings handed out – if there are, you can expect around another three months to be added on to that figure.

What happens once the dispute is settled?

If a country is found to be in the wrong, it must swiftly correct its fault. In this case, if Saudi Arabia is found to be in the wrong, it would most likely have to offer compensation to Qatar.

The losing “defendant” is then given time to bring its policy into line with the ruling or recommendations. The dispute settlement agreement stresses that “prompt compliance with recommendations or rulings of the DSB is essential in order to ensure effective resolution of disputes to the benefit of all Members”.

However, either side can appeal a panel’s ruling, and sometimes both sides will do so. Appeals have to be based on points of law such as legal interpretation — they cannot re-examine existing evidence or examine new issues.

The appeal can uphold, modify or reverse the panel’s legal findings and conclusions. The Dispute Settlement Body has to accept or reject the appeals report within 30 days — and rejection is only possible by consensus.