WTO Dispute Settlement Body Developments in 2010: An Analysis

Abstract

The WTO dispute settlement mechanism has been widely acclaimed as one of the most critical and useful features of the multilateral rules–based trading system. The Uruguay Round Understanding on Rules and Procedures Governing the Settlement of Dispute (DSU) has established an independent judicial system for the enforcement of agreements or commitments made by member countries in the WTO through the Dispute Settlement Body (DSB). The agreements or commitments represent the outcome of negotiations among the member governments themselves. This brief comment highlights some of the developments relating to the key elements of both the working of the WTO dispute system and recent trade disputes in 2010, which marked the 15th anniversary of the system. Having recorded over 400 trade disputes, the WTO dispute settlement system is considered as remarkably efficient, more so as disputes run significantly faster than cases in other international or regional institutions. There has been an increase in the participation of member countries in the dispute settlement system in 2010. In particular, the majority of cases filed during the year were initiated by developing countries, who also participated in many other cases as third parties. The improved effectiveness of the system has enabled member countries, both big and small, to exercise greater international legal scrutiny on the protectionist policies and practices of trading partners, thereby promoting a transparent and predictable environment that allows trade to flow more smoothly.