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The WTOs procedure for resolving trade quarrels under the Dispute Settlement Understanding is vital for enforcing the rules and therefore for ensuring that trade flows smoothly. A dispute arises when a member government believes another member government is violating an agreement or a commitment that it has made in the WTO. The authors of these agreements are the member governments themselves the agreements are the outcome of negotiations among members. Ultimate responsibility for settling disputes also lies with member governments, through the Dispute Settlement Body. |
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How
does the WTO settle disputes? > Video: Case studies of WTO dispute settlement The Dispute Settlement Understanding (DSU) — the main WTO agreement on settling disputes. Like the bulk of the WTO agreements, this was one of the outcomes of the Uruguay Round negotiations.
Rules of Conduct on rules and procedures for settling disputes, adopted in December 1996 Working Procedures for Appellate Review Made up of all member governments, usually represented by ambassadors or equivalent. The current chairperson is H.E. Ms. Amina MOHAMED (Kenya).
The permanent seven-member Appellate Body is set up by the Dispute Settlement Body and broadly represents the range of WTO membership. Members of the Appellate Body have four-year terms. They have to be individuals with recognized standing in the field of law and international trade, not affiliated with any government. A 1994 Ministerial Decision says dispute settlement rules should be reviewed by 1 January 1999. The review started in the Dispute Settlement Body in 1997. The deadline was extended to 31 July 1999, but there was no agreement. In November 2001, at the Doha Ministerial Conference, member governments agreed to negotiate to improve and clarify the Dispute Settlement Understanding. Ministers said that the new negotiations should be concluded not later than May 2003. These negotiations take place in special sessions of the Dispute Settlement Body (DSB). On 24 July 2003, acknowledging the fact that the DSB special session needed more time to conclude its work, the General Council agreed to extend the special session's timeframe by one year, to May 2004.
Buy
the book: Dispute Settlement Reports from Cambridge
University Press (co-publisher). This is the only WTO-authorized paginated version.
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