Dispute Settlement Mechanism Under WTO: Opportunities and Challenges

Abstract

As WTO follows rules based mechanism, it works as a forum of world trade system. As dispute is an inevitable issue of the world even in trading system and in the procedure of application of rules, WTO provides forum for the settlement of dispute. It recommends member country to resolve their dispute themselves. If they are not successful to solve problem, negotiation or similar measures are applied to settle dispute. If all those mechanisms fail, then panel will be formed. There is the provision of appeal on the decision of panel. Failure to the compliance to the decision may result the possibility of countermeasures to the losing party. Amount of Compensation is determined through negotiations. Arbitration may also settle an issue. A trade sanction emanates suspension of concessions or obligations. Level of suspension of concessions shall be equivalent to the level of nullification or impairment. Developing countries used to get additional time frame for implementation of the decision of dispute settlement body. The operation of the Most Favoured Nation treatment and special and differential treatment to developing and least developed countries even in the time of dispute settlement can be more positive and constructive policy and action for them.