IMPACT AND EFFECTIVENESS OF DISPUTE SETTLEMENT MECHANISMS OF WORLD TRADE ORGANIZATION

Abstract

The World Trade Organization was established on 1st January, 1995 at Geneva in Switzerland to reduce tariffs and other related trade barriers and also regulate trade among member states. The dispute settlement Mechanisms created under Article 17 of the Dispute Settlement Understanding have played a pivotal role in dispute settlement of member States of the World Trade Organization. The Dispute Settlement Body is saddled with the duty of deciding the outcome of trade disputes on the recommendation of a dispute panel set up by the World Trade Organization. The Appellate Body was established to hear appeals from the reports issued by the panel in disputes brought by the World Trade Organization members. This work examined the achievements and Impact of World Trade Organization Dispute Settlement Mechanisms. This work also considered the prospects of the World Trade Organization Appellate Body in hearing of appeals, adoption, modification and reversing of panel report. The doctrinal methodology have been used and adopted in this research study with a focus on the Primary and Secondary sources. The primary source is the General Agreement on Trade and Tariffs and Dispute Settlement Understanding. The secondary sources used in this work include textbooks, journals and articles as well as Internet. Flowing from the above, the work found that there have been serious challenges in hearing of appeals and adoption of panel reports. This work concluded that the World Trade Organization Mechanisms have not effectively resolved disputing member States due to procrastination and undue technicalities. Political deceitfulness also hampered dispute settlement. The enforcement mechanisms are often caught up in lack of political will.