Dispute Settlement Mechanism
The Dispute Settlement Mechanism was established under the Protocol on Rules and Procedures of the AfCFTA Agreement. It focuses on amicable, transparent and swift resolution of disputes between State Parties. The key institutions of the Dispute Settlement Mechanism are the Dispute Settlement Body, the Adjudicating Panels and the Appellate Body for second-tier review.
The Dispute Settlement Body (DSB)
The Dispute Settlement Body comprises all State Parties. The body adopts the reports of the Panels and the Appellate Body and ensures that the rulings and recommendations are upheld.
The Adjudicating Panels
The members of the Adjudicating panels are selected from an Indicative List. The Panel comprises competent individuals with experience in law, international trade, and other matters covered by the Agreement. Each State Party nominates two individuals to the Indicative List maintained by the AfCFTA Secretariat.
The Appellate Body
The Appellate Body of the Agreement is the tribunal of a final instance. It upholds, modifies or reverses the legal findings and conclusions of the Adjudicating Panel. Generally, if a Party disagrees with any aspect of a Panel Report, it may appeal to the Appellate Body for redress. Once the Dispute Settlement Body adopts decisions by the Appellate Body, they become legally binding on the disputing parties.
The Appellate Body comprises seven persons of recognised authority with demonstrated expertise in law, international trade, and the subject matter of the Agreement.
In addition to the arbitration process featuring the Dispute Settlement Body, Adjudicating Panel, and the Appellate Body, State Parties may also choose to settle disputes through the Office of the Secretary-General or conciliation and mediation.
