ABSTRACT
This chapter investigates the dispute settlement mechanism of the World Trade Organization (WTO). Given the role of state power in international relations, it is commonly assumed that richer states win compliance in WTO disputes, mainly because they can make creditable threats of retaliation against the noncomplying member. The WTO continues to be the foundation of global trade liberalization, based on the principles of equalization of tariffs among all members and national treatment of international goods. The General Agreement on Tariffs and Trade increased its membership with each consecutive round of negotiations, and it continued to eliminate trade barriers. Between 1947 and 1992, various rounds, which often went on for decades, resulted in significant reductions in tariffs and freer trade. The volume and complexity of WTO agreements, as well as the cost of litigation, place a proportionally higher burden on lower-income countries than on developed countries.
