Challenges for the Developing Countries and the LDCs in the DSU: Strengthening the Dispute Settlement System of the WTO

Abstract

The World Trade Organization (WTO)’s Dispute Settlement Understanding (DSU) has obligations to protect the contractual rights of developing countries against the power politics of developed countries. Although the dispute settlement system gives special economic security to developing and the least developed countries (LDCs), there are complains that developed countries have still influence in the DSU due to a lack of balancing political and economic power among members. Many members proposed to strengthen the consultation and mediation processes of the DSU system in the interest of developing countries and the LDCs. The paper examines the constraints and challenges faced by developing member countries against developed countries regarding lodging complaints in the DSU. The paper argues that the DSU should take developing countries’ complaints and proposals to strengthen the dispute resolution processes such as mediation and consultation into consideration for the betterment of the world economy and trade. The paper analyses that trade liberalization and special but differential treatment for developing and least developed countries can balance the power and economic politics among all members of the WTO.