WTO Dispute settlement

WTO Dispute settlement

Subject : International Relations

Section: International organisations

Concept :

• In 2022, the member-countries of the World Trade Organization (WTO) resurrected the dispute settlement system (DSS), also called WTO’s ‘crown jewel’, by 2024.

Dispute Settlement System (DSS)

• The Dispute Settlement System (DSS) was established to settle trade disputes between WTO members.
• Since its inception in 1995, this multilateral trading system has faced unprecedented hurdles.
• Dispute settlement is the core pillar of the multilateral trade system, and the WTO makes a distinctive contribution to global economic stability.
• The WTO mechanism promotes the rule of law while also making the trading system more secure and predictable.
• The Dispute Settlement System (DSS) is the second tier of the World Trade Organization’s DSS, hearing appeals from WTO panels.

Stages in a WTO Dispute Settlement

• Once a complaint has been filed with the WTO, there are two main ways to resolve a dispute:
• Mutually Acceptable Solution: The parties reach a mutually acceptable solution, particularly during the phase of bilateral consultations;
• Adjudication: It includes the subsequent implementation of the panel and Appellate Body reports, which are binding on the parties once adopted by the DSB.
• The WTO dispute settlement process is divided into three stages:
  • Parties’ discussions;
  • Adjudication by panels and, if relevant, by the Appellate Body.
• Ruling implementation includes the potential of countermeasures if the losing party fails to implement the ruling.

De-judicialisation of trade multilateralism

• The World Trade Organisation was established in a world dominated by the neoliberal consensus that evolved during the Cold War and the collapse of communism.
• The United States’ wider game plan appears to be the de-judicialization of trade multilateralism.
• Nations’ sovereignty is eroded as they lose authority over vital decision-making. De-judicialisation is the opposite process in which governments undermine international courts in order to regain decision-making power.