The Changing Status of Developing Countries under the World Trade Organization Dispute Settlement Mechanism

Abstract

This paper explores the changing status of developing countries under the World Trade Organization (WTO) Dispute Settlement Mechanism (DSM). Based on the analysis of WTO dispute dates for the last 14 years, we find that developing countries' participation in the WTO DSM has increased significantly since 2001, which implies their successful adaptation to the new legal system. In spite of concerns regarding various disadvantages on the part of developing countries, such as insufficient legal resources and biased decisions unfavorable to developing countries, the dispute outcome demonstrates that many developing countries have successfully defended their interests as complainants or defendants under the WTO DSM, and that there is no significant bias in the operation of the court that is unfavorable to developing countries. In a broader aspect, this study helps us understand the distributive consequences of the legalized dispute settlement system of the WTO.