The Contents and Features of Dispute Settlement under the US – Jordan FTA
A strong dispute resolution mechanism is a core component of FTAs which must provide a reliable and stable venue to address meritorious claims and deliver enforceable results and demonstrates the commitments of each government to comply with the contractual obligations. Without this commitment, businesses will be reluctant to risk capital. FTAs require legal foundation incentivizing stability, transparency, and compliance with obligations.
In the area of dispute resolution, the U.S. FTAs with Arab countries share some commonalities. However, the US – JO FTA clearly differs from other U.S. FTAs with Arab countries. Areas of difference include treatment of perishable goods, appeal, panel report, and implementation of panel report. The dispute settlement mechanism in the US – JO FTA can be improved in several concrete ways.
The purpose of the article is to analyse and assess the dispute settlement mechanism provided for by the US – JO FTA. The article concludes by proposing improvements to the US – JO FTA dispute resolution mechanism and additions to its existing provisions. These improvements will address potential concerns and should contribute to a higher utilization of the FTA as well as serve as a template for a more expansive US-led regional FTA.