DISPUTE SETTLEMENT BODY (Syllabus: GS Paper 2 – IR)

Context: As the World Trade Organization's (WTO) ministerial conference looms just four months away, India has urged for the immediate commencement of formal discussions to revive the dispute settlement system within the global organization.

• The United States, responsible for the dysfunction of the entire dispute settlement system, has initiated informal discussions regarding reforms to the Dispute Settlement Body.

Dispute Settlement Body

• The DSB of the World Trade Organization (WTO) makes decisions on trade disputes between governments that are adjudicated by the Organization. 
• Dispute Settlement Process

o Consultations between the parties;

o Adjudication by panels and, if applicable, by the Appellate Body;

o Implementation of the ruling, which includes the possibility of countermeasures in the event of failure by the losing party to implement the ruling.

Functions

• Formation of dispute settlement panels.
• Referring issues to arbitration and endorsing reports from panels, the Appellate Body, and arbitration.
• Monitoring the enforcement of recommendations and rulings specified in these reports.
• Granting approval for trade concessions suspension in cases of non-compliance with said recommendations and rulings.