Dispute Resolution in the World Trade Organization (WTO)

Dispute Resolution in the World Trade Organization (WTO),
[Author Name(s), First M. Last, Omit Titles and Degrees]
[Institutional Affiliation(s)]
Author Note

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Introduction
States consider the dispute resolution systems of the World Trade Organization (WTO) as
the most reliable and effective device in handling international trade disputes. The mechanisms
have even been referred to as the “Jewel in the Crown” due to its efficacy. Firstly, the success of
WTO is evident from the large number of disputes they have settled. Other proof of its efficacy is
the fact that members seek help whenever there is an unresolved dispute. The entire WTO system
and its processes remedy infringements of the rules thus restoring the balance as expected for the
realization of trade benefits. The main dispute settlements (commonly called DSU) that WTO
awards are compensations and suspensions of obligations or temporary remedies. This paper will
be an examination of how WTO dispute settlement systems have been effective. In this objective,
the paper will look at the system, and discuss the progress that WTO has made as examples of
illustrating its efficacy. The aim is to provide examples through the discussion as an illustration
of the efficiency of the system. Some of the proof this paper provides are the increasing members
who join WTO to receive the benefits. The increasing number of cases demonstrates that
members trust WTO decisions, the mechanism of enforcing the rulings are also factors discussed
in this paper.
World Trade Organization (WTO)
The efficiency of WTO can be summarized as lying within three main pillars; the
efficiency in providing timely dispute resolutions, the inclusiveness of the system where the
number of members has been increasing, and the various mechanisms for ensuring compliance.1
The WTO opened its doors to dispute resolutions in 1995, and it came with a dispute settlement
1 Soo Yeon Kim, ‘The Effectiveness of the World Trade Organization’s Dispute Settlement System’
[2017] Oxford Research Encyclopedia of Politics
<https://oxfordre.com/view/10.1093/acrefore/9780190228637.001.0001/acrefore-9780190228637-e-
536> accessed 6 May 2019.

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system (DSS) that was not available in other international laws. A few observers found that the
system fitted a description of a represented the ‘jewel in the crown’ in WTO.2 Compared to other
dispute settlements provisions that exist in other areas of international legal frameworks, the
WTO’s DSS is acting as the best system that is providing a judicial system in the times these
times of intense diplomatic, economic, and political disagreements in terms of legalization,
timely efficiency, and attracts a higher level of compliance from member states.3 A recent
analysis provided in Reich showed that WTO had solved close to 600 cases, the International
Criminal Court (ICC) had handled 23 cases, the International Tribunal for the Law of the Sea had
handled 25 cases.4 The report showed that the only system that was close to WTO was
International investment arbitration.5 Along with this evidence, the fact that members show
confidence with WTO demonstrates the efficacy of WTO’s system. While most of the states have
problems dealing with their own backlog of cases, WTO has shown its capabilities in avoiding
this backlog by resolving disputes in a reasonable time. This is an important factor in trade as it
quickly resets the obstacles that can highly affect international trade. More specifically, WTO has
been observing fairness in issuing remedies and sanctions to both large and small nations
regardless of their economic status. Similarly, WTO has been upholding the rule of law in its
decisions irrespective of the parties disputing parties’ imbalance in their economic power.6
2 World Trade Organization[WTO], ‘WTO | 2009 Press Releases - WTO Disputes Reach 400 Mark -
Press/578’ (2009) <https://www.wto.org/english/news_e/pres09_e/pr578_e.htm> accessed 4 May
2019.
3 Robert Howse, ‘The World Trade Organization 20 Years On: Global Governance by Judiciary’ (2016)
27 European Journal of International Law 9.
4 Arie Reich, ‘The Effectiveness of the WTO Dispute Settlement System: A Statistical Analysis’ (Social
Science Research Network 2017) SSRN Scholarly Paper ID 2997094
<https://papers.ssrn.com/abstract=2997094> accessed 4 May 2019.
5 ibid.
6 World Trade Organization, ‘APPELLATE BODY ANNUAL REPORT FOR 2013’ (2013)
<https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/WT/AB/20.pdf>.

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The supremacy of settlement by WTO lies in its automaticity. Any WTO Member can
freely bring a case for settlement if it has a dispute with another member. Once a member states
signs to become a party, it accepts even the WTO jurisdiction. Cases brought to WTO are placed
under strict time table and parties should anticipate a binding decision from either the panel or
the Appellate Body. A binding decision initiates an implementation requirement by WTO.
WTO Achievements
The last announcement by the WTO Director-General (DG) stated that WTO had reached
its 500th cases to be settled with the WTO settlement mechanism.7 Mr., Roberto Azevêdo argued
that the results demonstrated WTO’s efficiency in the dispute settlement mechanism.8 The DG
also pointed out that the tremendous increase is a sign of confidence that WTO has from its
member, see value in its fair, efficient, and effective mechanism in solving trade problems. This
500th dispute came to WTO’s panel on 10th November 2015.9 The dispute was between Pakistan
and South Africa which the state of Pakistan filed requesting consultations regarding the South
African’s provisions for antidumping duty Pakistan cement.10 Apart from just the benefit of the
settlement that these parties received, the dispute itself is significant as it proved that even
developing countries can benefit WTO. Furthermore, this was a case which showed that
developing nations can come to WTO either as complainants or respondents and receive a trade
remedy which is one of the important features of WTO.11
The news from DG also included comments on data revealing the success of DSS.12 Apart
from the data, the DG also mentioned that WTO success is evidenced by the general acceptance
7 World Trade Organization, ‘Dispute Settlement Activity in 2015’ (2015)
<https://www.wto.org/english/res_e/booksp_e/anrep_e/anrep16_chap6_e.pdf>.
8 ibid.
9 ibid.
10 Pervaiz Khan, ‘Effective Utilisation of the WTO Dispute Settlement System by Pakistan: A Public–
Private Partnership Approach’.
11 ibid.
12 World Trade Organization, ‘Dispute Settlement Activity in 2015’ (n 7).