WTO Dispute Settlement System

WTO Dispute Settlement System

Introduction

The following paper is all about the different stages in a typical WTO dispute settlement case. However, generally there are two main ways to settle the case in WTO, once the complaint filed in WTO;

The parties reached a mutual agreed solution, especially during the bilateral consultation phase;

The other way is through the adjudication, which is based on the subsequent implementation of the panel and the Appellate Body reports, however, these reports are considered to be binding upon the parties, once the case adopted by Dispute Settlement Body (DSB).

Beside the two main ways of settling the dispute in WTO, the main purpose of the paper is to highlight the different stages of the WTO Dispute Settlement process;

The first step is the consultation among the disputing parties;

The second step is the arbitration by the panels, however, if applicable by the Appellate body;

The third step of the process is reviewing the proceeding of the Appellate Body;

The third step in the process is the implementation of the ruling that includes the possibility of the countermeasures in regards to the failure of the losing party to implement the ruling.

In the following paragraphs, the author discussed the stages in detail.

Stages of DSB

First Stage; Consultation

One of the preferred objectives of the Dispute Settlement Understanding (DSU) is that the disputed members concerned to settle the dispute among them in a way that is consistent with the WTO agreement, article 3.7 of the agreement is for the DSU. As stated above, bilateral consultation among the disputed parties is the first stage of formal dispute settlement. Under this consultation, WTO provides the opportunity to the disputed parties to discuss the matter and try to reach to a satisfactory solution without reinstate the litigation. However, if the disputed parties did not reach to a mutual agreement during the consultation phase, only then the members can file a case within a time period of 60 days for adjudication by the Appellate panel. In this regard, WTO showed relaxation in a way, even when the consultation failed to resolve the conflict and case has been taken to the Appellate panel, yet the members of the case are allowed to reach the mutual agreement at any later stage of the proceedings.

As per the evidence, it has been stated that majority of the disputes that brought to WTO did not proceed beyond the consultation stage. The reason behind that the disputing parties reach the mutual agreement or the complaint filed by a member decided not to pursue to case anymore. The best party of consultation stage is that sometimes consultation serves as an effective instrument to bring the disputing parties to a mutual consensus because once the ruling came by the Appellate body than it would be necessary for the parties to implement the ruling. Therefore, a healthy and positive approach to the dispute is to settle it through consultation.

Second Stage: The Panel Stage

As the consultation stage failed to settle the ...