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Challenges Of WTO Dispute Settlement Mechanism




Abhishek Nair, BA LLB, KIIT School of Law


ABSTRACT


The World Trade Organization (WTO) plays a role, in promoting trade and resolving disputes among member countries but it faces certain challenges within its Dispute Settlement Mechanism (DSM) that hinder its effectiveness. This abstract examines the obstacles encountered within the WTO DSM and their implications.


To begin with non compliance presents a challenge to the DSM. Despite rulings issued by WTO panels and the Appellate Body some member countries fail to implement recommended actions. This undermines the systems authority. Creates an atmosphere of uncertainty. Moreover the absence of enforcement mechanisms limits the WTOs ability to ensure compliance.


Another significant hurdle lies in the deadlock regarding the appointment of Appellate Body members. The DSMs functionality is severely impacted by a number of adjudicators leading to delays and backlogs in resolving cases. As a result timely dispute resolution becomes challenging for the WTO potentially causing aggrieved parties to resort to retaliatory measures.


Additionally the growing complexity of trade issues adds to the DSMs effectiveness challenges. Disputes concerning areas like intellectual property rights, agricultural subsidies and technical barriers to trade require expertise for proper resolution.


By considering these aspects and making adjustments accordingly you can enhance the texts, like qualities while maintaining its original meaning and intent.The DSMs limitations, in addressing these intricate issues pose obstacles, to the resolution process.The World Trade Organization’s (WTO) Dispute Settlement Mechanism which was established in 1995, is used to settle trade related issues between WTO member states. Since its founding, it has received more than 500 complaints and uses both political negotiation and adjudication to settle disputes. The WTO dispute Settlement Procedure is a crucial method for resolving trade disputes between member nations of the WTO. Four Stages make up the process: Consultation, Panel Body, Appellate Body and Enforcement. Although the process has been effective in many cases of dispute resolution, however this mechanism faces formidable obstacles that jeopardise its efficiency. The process of resolving disputes is becoming more and more politicised, with some nations utilising it to advance political rather than economic goals. The intricacy of contemporary trade issues, which can be challenging to resolve within the current legal framework, is another difficulty.


Numerous solutions and suggestions have been made to overcome these difficulties. In order to provide parties more time and resources to settle issue without turning to more formal legal procedures, is to look into alternative dispute resolution process like arbitration or mediation which may be more effective in solving intricate trade issues.


This paper analyses the challenges that are often faced during and after the dispute settlement procedure. The Paper aims to introduce the WTO dispute Settlement Mechanism in detailed format, the challenges which arise due to non-compliance of decisions, remedies/recommendations and effective solutions to the challenges faced in the WTO Dispute Settlement Mechanism as well as relevant case studies. The Paper demonstrates the pros and cons of the WTO dispute Settlement Mechanism and their relevant solutions in International Trade Law.

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Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878

Website: www.ijllr.com

Accessibility: Open Access

License: Creative Commons 4.0

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