Cross Retaliation under the WTO-DSM

Abstract

The WTO dispute resolution system provides mechanism for finding out a solution for dispute occurred between the member nations. In respect to the same Dispute Settlement Body (DSB) authorized sanctions to be imposed when a member country is unwilling to comply. However, the retaliation process has some ambiguities and difficulties and also has undesirable economic features. In fact, in the traditional retaliation, trade concessions may cause economic loss to the less powerful member using them. Hence term cross retaliation is invented and the same is used as a weapon against the developed nations to make them comply with the World Trade Organization (WTO) obligations. This chapter discusses in brief the dispute settlement process, traditional retaliation and its drawbacks, the introduction of cross retaliation in the WTO dispute settlement process. The leading cases in which cross retaliation is allowed by the appellate board and use of cross retaliation under the Trade-Related Aspects of Intellectual Property (TRIPS) agreement.