Non-Violation Complaints (NVCs) are a unique concept/provision within the dispute settlement system of the World Trade Organization (WTO), preserved under Article 26 of the Dispute Settlement Understanding (DSU). Unlike standard complaints, an NVC is filed when a member country's action, while not violating a specific WTO agreement, still deprives another member of an "expected benefit". The concept originated in the General Agreement on Tariffs and Trade (GATT), specifically Article XXIII:1(b) of the original 1947 text, to prevent countries from undermining negotiated tariff concessions with new, non-tariff measures.
The mechanism requires the complaining member to prove three elements: the application of a 'measure,' the identification of a 'benefit' under a WTO agreement, and a demonstration that the measure has 'nullified or impaired' that benefit. If a panel finds in favour of the complainant, the recommendation is not to withdraw the measure, but for the member to make a "mutually satisfactory adjustment". NVCs are applicable to the GATT 1994 and the General Agreement on Trade in Services (GATS), but their application to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is highly contentious.
Since the TRIPS Agreement came into effect on January 1, 1995, a moratorium on NVCs has been in place for intellectual property matters under Article 64.2 of TRIPS. This moratorium protected countries like India, which rely on policy flexibilities—such as compulsory licensing under Section 3(d) of the Indian Patents Act—to balance innovation with public interest. However, the moratorium on TRIPS NVCs expired for the first time since 1995 after member countries failed to reach a consensus at the 14th Ministerial Conference (MC14). This lapse creates immediate uncertainty, as it exposes WTO-compliant policies, including those related to medicines, seeds, and agriculture, to potential challenges on the grounds of nullifying expected profits.