Question

Describe the Dispute Settlement Procedure of the World Trade Organization (WTO).

Explain how its collapse could lead to a collapse of the WTO?

Answer 1

Q) Describe the Dispute Settlement Procedure of the World Trade Organization (WTO)? Explain how its collapse could lead to a collapse of the WTO?

Answer- Dispute settlement or dispute settlement system (DSS) is regarded by the World Trade Organization (WTO) as the central pillar of the multilateral trading system, and as the organization's "unique contribution to the stability of the global economy".A dispute arises when one member country adopts a trade policy measure or takes some action that one or more fellow members consider to be a breach of WTO agreements or to be a failure to live up to obligations. By joining the WTO, member countries have agreed that if they believe fellow members are in violation of trade rules, they will use the multilateral system of settling disputes instead of taking action unilaterally — this entails abiding by agreed procedures—Dispute Settlement Understanding—and respecting judgments, primarily of the Dispute Settlement Board (DSB), the WTO organ responsible for adjudication of disputes.

A former WTO Director-General characterized the WTO dispute settlement system as "the most active international adjudicative mechanism in the world today." Chad P. Bown of the Peterson Institute for International Economics and Petros Mavroidis of Columbia Law School remarked on the 20th anniversary of the dispute settlement system that the system is "going strong" and that "there is no sign of weakening"The dispute settlement mechanism in the WTO is one way in which trade is increased.

There are three main stages to the WTO dispute settlement process:

1) consultations between the parties.

2) adjudication by panels and, if applicable, by the Appellate Body.

3) the implementation of the ruling, which includes the possibility of countermeasures in the event of failure by the losing party to.

Explain how its collapse could lead to a collapse of the WTO?

The WTO's powerful appellate body which upholds, modifies or reverses ruling in trade disputes is set to lose two judges, who finish their terms on December 10, leaving the panel with just one member.

the World Trade Organisation will no longer be able to fulfill its role as the arbiter of global trade disputes. The WTO’s powerful appellate body which upholds, modifies or reverses ruling in trade disputes is set to lose two judges, who finish their terms on December 10, leaving the panel with just one member. The Trump administration has blocked new appointments to the appellate body, claiming it has overstepped its mandate. The US has also threatened to block the WTO’s budget, which could cause the international organisation with 164 members to entirely shut down on January 1, 2020.