WTO Dispute Settlement Mechanism(3)/刘成伟(29)
The fundamental importance of a panel's terms of reference has been stressed on more than one occasion. For example, the Appellate Body rules in Brazil-Coconut（DS22）that, a panel's terms of reference are important for two reasons: “First, terms of reference fulfil an important due process objective -- they give the parties and third parties sufficient information concerning the claims at issue in the dispute in order to allow them an opportunity to respond to the complainant's case. Second, they establish the jurisdiction of the panel by defining the precise claims at issue in the dispute.” 1
However, with regard to the issue of panel’s terms of reference, what we will firstly get down to is the relationship between the terms of reference and the consultation process.
II Effect of Consultations on Terms of Reference of Panels
Consultations are a crucial and integral part of the DSU and are intended to facilitate a mutually satisfactory settlement of the dispute, consistent with Article 3.7 of the DSU. However, as noted previously, what takes place in those consultations is not the concern of a panel. With regard to the issue discussed here, the Panel in Turkey-Textile and Clothing (DS34) rules that:2
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