Pranav Das, UPES, Dehradun
ABSTRACT
The dispute settlement mechanism of the World Trade Organization (WTO) is a process designed to resolve trade disputes between member countries in a timely and impartial manner. It is one of the most effective dispute resolution mechanisms in the world. The dispute settlement mechanism of the WTO is based on the principles of transparency, predictability, and the rule of law. It is a two-stage process, consisting of consultation and litigation. The consultation stage is initiated when a member country lodges a complaint against another member country for violating WTO rules. The parties are expected to enter into consultations within 60 days and attempt to resolve the dispute amicably within a period of 90 days.
If the consultation stage fails to resolve the dispute, the complaining party may request the establishment of a panel to hear the case. The panel is made up of three independent experts appointed by the WTO Secretariat. The panel has 6 months to issue a report, which includes findings of fact, conclusions of law, and recommendations for resolution. Either party can appeal the panel's decision, and the appeal is heard by an appellate body made up of seven judges appointed by the WTO. The appellate body has up to 3 months to issue a report.
The outcome of the dispute settlement mechanism is binding, and the losing party is required to bring its measures into compliance with WTO rules. If it fails to do so, the winning party can request the authorization to impose retaliatory measures against the violating country. In summary, the dispute settlement mechanism of the WTO provides a fair and impartial process for resolving trade disputes between member countries. It ensures that countries abide by agreed-upon rules, promotes transparency, and encourages trade relations among member countries.
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