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Dispute Settlement

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Chapter Summary

A particularly remarkable aspect of the World Trade Organization (WTO) is that it has a strong legally based element of dispute settlement and enforcement. WTO Dispute Settlement pursues various aims: primarily, the settlement of disputes between individual Members in a legally prescribed and court-like procedure, in which the Dispute Settlement Understanding (DSU) explicitly favours an amicable solution and therefore points to political opportunities for settlement of trade conflicts. Dispute settlement under the WTO, secondly, serves to protect the reciprocal rights and obligations of the Members, and therefore, to maintain the functioning of the legal framework and the WTO itself. The strength of the dispute settlement system of the WTO lies in the fact that the entire procedure is strictly regulated. This regulation is accompanied by institutionalization, which is provided in the WTO Agreement. The dispute settlement procedure is divided into three parts: consultation, Panel or Appellate procedure, and enforcement.

Keywords: dispute settlement; law enforcement; reciprocal rights; trade conflicts; World Trade Organization (WTO)



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