Dispute settlement mechanism of the World Trade Organization: its importance beyond the WTO framework

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The Dispute Settlement Mechanism of the World Trade Organization was recognized as one of the most successful mechanisms of settlement of inter-State disputes. Due to recent developments, however, the functioning of the WTO Appellate Body has been suspended, which could give the impression that the WTO dispute settlement mechanism might lose its importance. The present article explores the idea that the importance of the WTO mechanism goes beyond the framework of this organization. In particular, the WTO mechanism has strongly influenced the establishment of dispute settlement mechanisms in regional trade agreements. Another important area influenced by the WTO mechanism is international investment dispute settlement, which is currently undergoing a reform under the UNCITRAL initiative. One can note the influence of the WTO Mechanism on the elements of regional dispute settlement mechanisms, as well as its importance for the reform of international investment arbitration, first of all in the establishment of an appeal mechanism. The article also discusses the meaning of the WTO DSB practice for regional mechanisms and obligations of parties to regional trade agreements to take into account decisions of panels and the Appellate Body. Besides that, there are examples of the use of WTO DSB practice in the context of international investment arbitration: although this approach caused a mixed reaction of specialists, it cannot not be excluded that arbitrators dealing with investment disputes will use WTO practice in the future. Based on the results of research presented in the article, the author comes to the conclusion that, notwithstanding current difficulties, the WTO dispute settlement mechanism remains important, beyond the WTO framework and serves as a guidance for a number of other dispute settlement systems.

About the author: Marina Trunk-Fedorova – Candidate of Sciences (Ph.D.) in Law, Associate Professor of the Department of Administrative and Financial Law, Saint Petersburg State University, Saint Petersburg, Russia.

Citation: Trunk-Fedorova M. (2021) Mekhanizm razresheniya sporov v ramkakh Vsemirnoy torgovoy orga­nizatsii: znachenie za predelami sistemy VTO [Dispute settlement mechanism of the World Trade Organization: its importance beyond the WTO framework]. Mezhdunarodnoe pravosudie, vol. 11, no. 4, pp. 117–131. (In Russian).

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