DSU reform: Resolving underlying balance-of-power issues

Valerie Hughes’ paper provides an excellent account of the first decade of dispute settlement in the World Trade Organization (WTO) under the new Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). On its adoption in 1995, the DSU became the first legally binding codification of dispute settlement procedures developed under the General Agreement on Tariffs and Trade (GATT). It combined past experience under the customary rules and the 1979 Understanding Regarding Notification, Consultation, Dispute Settlement and Surveillance (BISD 36/210) of the GATT, with truly revolutionary elements, in particular the establishment of a two-tier system, comprising both panels and the new Appellate Body. As Ms Hughes addresses the different stages of the system, from bilateral consultations to implementation of rulings adopted by the Dispute Settlement Body (DSB), she provides an overview both of past experience and proposals submitted for reform under the current negotiations.