Developing countries: Whether legal (and costly) settlement of disputes is better than political settlement

Abstract

The rule-oriented dispute settlement system of the World Trade Organization (WTO) is a remarkable achievement in international economic regulations in which law has a major role. Trade law, among all international legal systems, is the most advanced and used one. Bearing this in mind, this article approaches the main users of the system over the years—with a significant increase in developing countries’ participation—the advantages of using the system for all WTO Members (and whether the system works for developing economies), and how changes in the dispute settlement system’s rules could facilitate small and developing countries’ ability to pursue legal claims. This chapter is aimed at showing that even with the difficulties imposed by the system itself for developing economies’ participation, it normally provides for a safer and long-lasting solution than a purely political settlement.