WTO Dispute Settlement Mechanism
The WTO Dispute Settlement Understanding (DSU) is the rules-based mechanism for resolving trade disputes between member states. Administered by the Dispute Settlement Body (DSB) — which is the General Council meeting in special session — it involves a mandatory consultation phase, followed by panel adjudication, then an Appellate Body review (though this is currently non-functional). The system operates on a "negative consensus" rule for panel establishment at the second request: the panel is established automatically unless all members (including the complainant) agree not to establish it.
- DSU Article 6.1: A responding member can block a panel at the first DSB meeting; cannot block at the second (negative consensus rule applies)
- Panel composition: 3 (or 5) panelists, typically trade law experts from third countries; serves as fact-finding and legal adjudication body
- Timeline: Panel proceedings typically take 12–15 months; Appellate Body review adds 60–90 days
- Appellate Body crisis: Since December 2019, the Appellate Body has been non-functional due to the US blocking new appointments — all panel reports can be appealed into a legal vacuum; WTO members are using the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) as an alternative
- If India loses: must bring its measures into WTO conformity or face authorised retaliation (DSU Article 22) — the complainant can request permission to impose countermeasures equivalent to the nullified trade benefit
● Tracked since February 24, 2026 · last seen May 22, 2026 · updates as the daily brief publishes
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