Dispute Settlement Procedures

Dispute settlement procedures, in the context of the World Trade Organization, are contained within the Understanding on Rules and Procedures Governing the Settlement of Disputes. This agreement was negotiated and signed at the 1994 Conference in Marrakesh and outlines the procedures, including consultation and adjudication, members of the WTO must move through to reach a final decision in trade disputes.

The WTO dispute settlement understanding refers to the Understanding on Rules and Procedures Governing the Settlement of Disputes. Negotiated and signed by the members of the World Trade Organization, the Understanding explains the substantive and procedural rules that govern disagreements and trade disputes between member nations of the WTO.

While a variety of opinions exist with respect to the efficacy of dispute settlement at the WTO, there is a general consensus that dispute settlement at the WTO works more effectively than those addressed through a previous international body, the General Agreement on Trade and Tariffs (GATT). That said, critics have identified the lack of any powerful enforcement mechanisms and a lack of speed as negatives in the process.