financial compensation is not specified in the text of the treaty and is rare in practice.
The TPP DSM also makes two improvements to the WTO system as regards the procedures at the implementation phase. First, the TPP DSM clarifies the sequence of steps for the review of compliance measures taken by the responding party and the application of the temporary remedies. The ambiguity regarding this sequence in the legal text of the WTO DSM led to some controversy in the past and has resulted in the adoption of ad hoc sequencing agreements between WTO disputing parties that reach this stage of dispute settlement.
Second, whereas the WTO DSM provides for separate proceedings to review compliance, on the one hand, and the form and level of retaliation, on the other, under the TPP DSM the two processes are consolidated. Thus, a decision can be taken by the same panel, in a single proceeding, on whether the inconsistency has been eliminated, and where this is not the case, the level of concessions that can be suspended.
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