Problem
Country A and Country B are both WTO members; they respectively adhered to the WTO Agreements in 1994 and 1997. Bilateral economic relations between A and B are excellent but since the spread of the COVID-19 pandemic, Country B is facing economic and financial challenges.
Country B believes that companies from Country A are manipulating its domestic market and distorting competition with unfair practices. Thus, B decided to ban access to its domestic market to products from A. Also, service providers from Country A are not allowed to exercise in Country B anymore.
Country A argues that all measures adopted by B violate the WTO Agreements, especially the GATT (trade in goods) and the GATS (trade in services). As a consequence, A initiated a claim against B in front of the WTO DSS (Dispute Settlement System).
Barques that the WTO is not competent as a bilateral treaty concluded in 1993 specifies that any commercial dispute will be settled through arbitration. Also, B argues that it made reservations on the competence of the WTO DSS when it adhered to the WTO in 1997. What do you think?