The Role of World Trade Organization (WTO) in Trade Dispute Settlement: A Study

Abstract

In essence, unfulfilled promises are at the heart of WTO disputes. WTO members have decided not to act unilaterally in the event that they suspect other members are breaking trade regulations; instead, they will resolve issues through the multilateral system. This entails following the established protocols and honoring decisions. When a nation adopts a trade policy measure or does something else that some other WTO members believe violates the agreements or falls short of responsibilities, a dispute often results. A third set of nations may indicate their interest in the matter and be granted certain privileges. Under the previous GATT, there was a dispute resolution process in place, but it lacked specified deadlines, verdicts were more easily overturned, and many cases took a very long time to reach a conclusion. The Uruguay Round accord brought in a more organized method with more precisely defined steps. With adjustable timelines set at different phases of the process, it offered additional discipline for how long a case should take to settle. The agreement highlights that timely settlement is necessary for the WTO to operate efficiently. It lays forth in great detail the steps and schedule that must be taken in order to settle disputes.