The World Trade Organization Agreement includes a dispute resolution mechanism.  Simply put, a request can be made for a WTO panel to be established to determine whether a country's actions are consistent with the WTO agreements.

Settling disputes is the responsibility of the Dispute Settlement Body, which consists of all WTO members.  The Dispute Settlement Body has the sole authority to establish "panels" of experts to consider the case, and to accept or reject the panels’ findings or the results of an appeal.  It monitors the implementation of the rulings and recommendations, and has the power to authorize retaliation when a country does not comply with a ruling.

Panels consist of three (possibly five) experts from different countries who examine the evidence and decide on whether the measure in question is consistent with WTO agreements.  The panel prepares an interim report, which is provided to the two sides for a review and then a final report is issued.  The report becomes the Dispute Settlement Body’s ruling or recommendation within 60 days unless there is a consensus reached to reject it.  Both sides can appeal the report.  Appeals have to be based on points of law such as legal interpretation — they cannot re-examine existing evidence or examine new issues.

If the panel decides that the disputed trade measure is inconsistent with a WTO agreement or an obligation, it usually recommends that the measure be made to conform to WTO rules.

For further information on the WTO dispute resolution process see the WTO website.  Full copies of panel reports can also be found on the WTO website.

Current Status.