ABSTRACT

This chapter discusses how world trade organization (WTO) members may settle their disputes arising out of International Trade and in accordance with the WTO rules. Notwithstanding, some rules exist to settle disputes about the construction and enforcement of International Trade rules and about the bodies that have the jurisdiction to lead these processes as well. This is the goal of the dispute settlement understanding (DSU), one of the WTO's most important agreements, so important that it had been called the "jewel of the crown." Indeed, the DSU is regarded as a quantum leap. It introduced a more structured process, with clearly defined stages and penalties for non-compliance as well. The dispute settlement body (DSB), composed of all WTO members, is the body in charge of settling trade disputes. The DSB also monitors the implementation of the rulings and recommendations, having the power to authorize retaliation when a country does not comply with a ruling.