The World Trade Organisation or WTO has over 140 members including all of the major trading countries and trade disputes are likely among these members as WTO agreements may be interpreted or applied differently by different WTO members1 . Considering the possibilities and of trade disputes, the Dispute Settlement Understanding has been used by the WTO as a legal and administrative tool to settle disputes between trading members…
The members of the WTO are aware of the clear and well established legal procedures available for smooth trading and enforce the relevant rules to settle disputes among themselves. These rules are contained in the understanding on Rules and Procedures Governing the Settlement of Disputes (through Dispute Settlement Understanding or DSU)2 .
The strict legal and policy framework of the DSU helps in promoting adherence to rules which are negotiated by WTO Members and since the rule of law rather than the rule of power is applicable and important, the DSU rules are beneficial for small and medium sized countries engage in worldwide trade so that there is very little scope for unilateral trade actions by large countries3. There are automatic establishments of panels to review complaints and disputes by WTO members and specific timelines are also established throughout the process so that all disputes are resolved quickly and efficiently. If the disputes are addressed in favour of a particular member, there are also provisions for a right to appeal against panel decision to a permanent Appellate Body on issues of law and automatic adoption of panel reports4. The WTO Members are encouraged to resolve disputes through consultations and for most disputes, reaching to the state of panel decision may also not be necessary5.
If panel decisions are taken, the panel report and the Appellate Body report are adopted by WTO members and at a meeting of the Dispute Settlement Body, it becomes a WTO ruling. The members who are found to violate obligations are given a period of time to comply with the ruling in whatever manner possible. The member is given a time period within which it has to comply with the ruling. If the member fails to comply with the ruling, within the prescribed time limits, then it has to offer compensation to the complaining member during the time of pending compliance with the ruling. When there is disagreement on compensation, then the complaining member may be authorised to retaliate and take action until the other member has actually complied with the ruling. A rule based system seems to provide for a framework that helps to manage international trade relations and the trade disputes. The best method of resolving trade disputes have been considered as consultations and negotiations and when the consultations fail, then the dispute settlement provisions are utilised and panel decision may be sought.6 When even panel decisions fail, appeals are made to the Appellate Body and the legal provisions are identified and implemented. The DSU facilitates smoother trade transactions and exports between countries and also helps individual member countries to defend measures which may be challenged by the other trading partners7.
In this assignment we will discuss the effects of Article 4, 6 and 23 of the ...
Cite this document
(“Dispute Settlement Understanding Essay Example | Topics and Well Written Essays - 3500 words”, n.d.)
Retrieved from https://studentshare.net/politics/274038-dispute-settlement-understanding
(Dispute Settlement Understanding Essay Example | Topics and Well Written Essays - 3500 Words)
“Dispute Settlement Understanding Essay Example | Topics and Well Written Essays - 3500 Words”, n.d. https://studentshare.net/politics/274038-dispute-settlement-understanding.
The WTO itself has acknowledged that the dispute resolution system established under the General Agreement on Tariff and Trade 1947 were significant for facilitating the resolution of trade disputes. However, the changes introduced via the WTO’s DSU have “strengthened very substantially” the role of dispute resolution in international trade disputes sans a centralized governance system.
Many countries exchange goods and services irrelevant of the distance, monetary form, local laws, and even international laws. In fact, many individuals now conduct their own international exchanges without going through necessary legal procedures that used to restrict inter-trade between countries.
The World Trade Organization claims that the changes implemented by the World Trade Organization’s dispute settlement system strengthens the role that dispute resolution plays in success of the World Trade Organization’s multilateral trade regime
There are several ways through which these conflicts can be resolved; these ways are both violent and nonviolent. In this writing we will focus on different ways of solving international disputes including: alternative dispute resolution (ADR) and international tribunals.
The authors of these agreements are the member governments themselves — the agreements are the outcome of negotiations among members (World Bank Group 1994). Ultimate responsibility for settling disputes also lies with member governments, through the Dispute Settlement Body.
Yet there are many who question the viability of the dispute settlement system of the WTO.
While the leading superpowers of trade, the United States and Europe, struggle over questions of a seemingly intractable nature, the poorer nations find it difficult to find the financial means to come to the podium to be heard.
Article 33(1) of the United Nations Charter also discusses direct and peaceful settlement of international disputes where states are to settle their disputes by means of negotiation, inquiry, mediation, conciliation, arbitration, judicial settlement, regional agencies or arrangements, and other peaceful settlements decided on by them.
ispute resolution system established under the General Agreement on Tariff and Trade 1947 were significant for facilitating the resolution of trade disputes. However, the changes introduced via the WTO’s DSU have “strengthened very substantially” the role of dispute
It was reached during this round to an agreement for the settlement of disputes between different parties, where the World Trade Organization has been authorized the settlement of bilateral disputes between
Breach of WTO agreements could consequently result in disputes between member governments, thus the need to have a mechanism within which such disputes are addressed1. DSU provisions are enforced by the Dispute Settlement Board (DSB), under the rules and regulations
3 Pages(750 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Dispute Settlement Understanding for FREE!