Dispute settlement – clarifying rules and resolving disputes

One of the most important features of the WTO – and a major result of the Uruguay Round – is its strengthened dispute settlement system. Settling disputes has always been a core function of the multilateral trading system, but the WTO's Dispute Settlement Body (DSB) represents a significant improvement over the GATT's approach in several important respects. Above all, the system is more efficient – this is an acknowledgement of the importance of prompt dispute settlement to an effective and smooth functioning WTO. Whereas GATT disputes had no fixed timetables, the WTO instituted a more structured process with clearly defined stages and deadlines. As a result, the WTO has one of, if not the, fastest international dispute settlement mechanisms. At the panel stage, most cases are completed in about 14 months; and Appellate Body reports are, with very few exceptions, issued in no more than three months.