The Dispute Settlement System of the World Trade Organization: Institutions, Process and Practice

2001 ◽  
pp. 297-350
Author(s):  
Christiane Gerstetter

This chapter analyses how the World Trade Organization (WTO) dispute settlement bodies legitimize their decisions and by implication also the WTO Dispute Settlement System as well as the WTO as an institution more broadly. The author argues there are two relevant dimensions for understanding how judges legitimize judicial decisions: the substantive outcomes of cases, that is who wins and loses and what interpretations are adopted, and the way a judicial decision is justified. She concludes that the WTO dispute settlement bodies act strategically in order to win the acceptance of the member states, and ultimately legitimize this dispute settlement system as a judicial entity.


Author(s):  
Sivan Shlomo Agon

Recent years have confronted the World Trade Organization (WTO) Dispute Settlement System (DSS) with an intense wave of complex linkage disputes. US-Clove Cigarettes, which stands at the centre of this chapter, serves as the second case study in the investigation into the DSS’s goal-attainment endeavours in this category of WTO disputes. The chapter begins with a review of several jurisprudential milestones leading from the early US-Shrimp, examined in Chapter 5, to the more recent US-Clove Cigarettes, examined here, with a view to portraying the legitimation continuum of which the latter dispute forms a part. The chapter then discusses the intricate legitimacy setting in which US-Clove Cigarettes unfolded and, through a close goal-oriented analysis, shows how the intensified legitimacy concerns aroused shaped the goals pursued by the DSS and the judicial choices made towards their achievement. The chapter concludes by linking the goal-attainment efforts identified to the broader DSS goal-based effectiveness framework advanced in the book.


2018 ◽  
Vol 112 ◽  
pp. 315-316
Author(s):  
Kathleen Claussen

With the creation of the World Trade Organization (WTO) in 1995, major changes were made to the dispute settlement system that had previously governed international trade disputes. Prior to the WTO, the dispute settlement system that had evolved under the General Agreement on Tariffs and Trade (GATT) was widely believed to suffer from certain structural weaknesses. One perceived weakness was that the establishment of a dispute settlement panel or the adoption of a panel's report required a positive consensus of all the GATT contracting parties, effectively allowing respondents to block losing outcomes against themselves. Thus, one major change that resulted from the Uruguay Round of negotiations (which led to the creation of the WTO) was the replacement of the positive consensus rule with a negative consensus rule such that to block establishment of a panel or adoption of a panel report, all WTO members have to agree not to establish or not to adopt the report.


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