News 09 Apr. 2024
Curtis Announces New Partners and Counsels Across Offices in Spring 2024
more
News 25 Jan. 2024
Counsel Mohannad A. El Murtadi Suleiman Addresses “Africanization” of International Investment Law
Event 18 Aug. 2023
Partner Borzu Sabahi Speaks at FDI Moot Shenzhen
News 25 Jul. 2023
Partner Eric Gilioli Ranked in Top 10 Influential Energy & Natural Resources Lawyers in Kazakhstan in Business Today
Client Alert 28 Dec. 2023
U.S. to Impose Secondary Sanctions on Non-U.S. Banks For Financing Russia’s Defense Industry
News 28 Aug. 2024
Curtis Recognized for Excellence in Arbitration in Chambers Latin America Guide 2025
Event 22 Aug. 2023
Partner Dr. Claudia Frutos-Peterson to Speak at Arbitration and ADR Commission of the ICC Mexico
News 15 Aug. 2023
Legal Reader Publishes Article on Dr. Majed Alotaibi’s Arrival as Senior Counsel in Curtis’ Riyadh Office
News 31 Jul. 2023
Curtis Welcomes Senior Saudi Advisor, Dr. Majed Alotaibi, to its Riyadh Office
News 24 Aug. 2023
Curtis Attorneys Quoted in CoinDesk on FTX Founder Sam Bankman-Fried’s Strategy Ahead of His Criminal Trial
Client Alert 10 Jul. 2024
EU Adopts New Restrictive Measures Against Belarus
Client Alert 26 Jun. 2024
The EU Adopts its 14th Sanctions Package Against Russia
news
Legal 500 UK Recognizes Curtis Practices and Attorneys in 2025 Edition
Curtis Attorneys Featured in IBA Insolvency and Arbitration Working Group’s New Reports
International Trade
The World Trade Organization settles international trade disputes with a multi-step process outlined in the Dispute Settlement Understanding (DSU) agreed to by member nations in 1994. The process includes various stages of consultation between the member nations, the formation of an ad hoc Dispute Settlement Panel, examination of the member nations and third parties by the panel, the issuance of a report, and, if necessary, authorized compensatory or retaliatory measures.
Insofar as the purpose of WTO trade law is to preserve the rights of WTO member nations and to provide predictability and uniformity to the resolution of WTO trade disputes, the dispute settlement mechanism of the World Trade Organization could reasonably be said to serve its purpose. Of course, there are examples of disputes between member nations that have not been satisfactorily resolved by the WTO.
WTO decisions are enforced by consensus. The WTO itself holds no leverage over the member nations and relies on its members to enforce sanctions, retaliatory measures, and compensatory measures. Unlike some agencies, whose bureaucracies can threaten to withhold credit to an offending nation, WTO trade law is entirely consensus-based.
The World Trade Organization hears allegations of violations of its trade agreements via its Dispute Settlement Body. Decisions of and reports by the DSB must be enforced by member nations, who have previously agreed to the DIspute Settlement Understanding which requires a multilateral approach to dispute resolution. The WTO has no authority or leverage to unilaterally impose resolutions of international trade disputes.
The WTO dispute process begins with a consultation period, during which the affected member nations engage in negotiation and mediation. If consultation is unsuccessful, each party is examined by an ad hoc dispute resolution panel made up of three or five members. The panel prepares a report and provides it to the involved parties. The unsuccessful party submits an implementation report to the panel. If implementation is unsatisfactory, the successful party may be authorized to take retaliatory measures.
A trade dispute can refer to a wide variety of situations, from a full-scale “customs war” or “trade war” to a less intense conflict about the alleged violation of a trade agreement, custom, or rule by one of a country’s trading partners. International trade disputes often involve allegations of dumping or abusive national subsidy practices.
The dispute settlement mechanism is a crucial part of WTO trade law. When an international trade dispute occurs, the World Trade Organization encourages consultation between the affected parties to resolve the dispute. When no resolution is forthcoming, the World Trade Organization convenes an ad hoc dispute settlement panel to examine each of the parties and any involved third parties. The panel prepares a report, the recommendations of which must be implemented by the unsuccessful party.
Trade disputes can be handled in a variety of ways. The majority are dealt with by way of informal and formal negotiations between nations. Those that require further adjudication often go before the Dispute Settlements Body at the World Trade Organization. International trade disputes that require this level of formal resolution move through different levels of consultation, litigation, and adjudication.
Daniel Porter
Partner
WTO and International Trade Dispute Settlement
Washington, D.C.
+1 202 452 7373
Beijing
+86 10 8564 6200
Brussels
+32 2 313 37 31
Geneva
+41 22 718 3500
We use cookies on our website to enhance your browsing experience, match your interests and assess our website performance. We do not share information with any third-party for marketing purposes. Please view our privacy policy to learn more about the use of cookies on our website. By continuing to browse our website, you consent to our use of cookies.