The Current Status and Future of the WTO Dispute Settlement Mechanism

Abstract

With the development of globalization, the WTO plays a crucial role in resolving international trade disputes. However, the current WTO Dispute Settlement Mechanism is unable to address the trust crisis caused by deglobalization, and issues with the procedures themselves have become increasingly prominent. This has ultimately led to a complete deadlock in the WTO dispute settlement mechanism, causing the WTO Appellate Body to cease operations. In this situation, many countries adopt political negotiations or regional settlement mechanisms instead of passing the WTO, which challenges global multilateral rules. Although major countries such as the United States and China, as well as international organizations such as the European Union, have proposed corresponding solutions, there is no systematic and effective solution to reverse the situation, which means that more comprehensive ways are still needed to promote the improvement of the WTO trade dispute settlement mechanism. The article aims to study the problems currently faced by the WTO dispute settlement mechanism and the solutions to solve them to promote the better international role of the WTO trade dispute settlement mechanism. In the sort term,in response to the criticism of the Appellate Body by the United States and the procedural deficiencies of the Appellate Body itself, the WTO should standardize its authority to interpret WTO agreements, strictly select and term judges, and enhance the transparency of the Appellate Body. In the long term, the keynote should be on rebuilding political mutual trust, enhancing the trust of major powers in the WTO, and safeguarding the rights and interests of developing countries.