The Future of WTO Dispute Settlement

Paper Info
Page count 6
Word count 1492
Read time 6 min
Subject Economics
Type Essay
Language 🇺🇸 US


The WTO member states have since 1995 been using this system to solve disputes. The mechanism of finding solutions to issues brings onboard interested countries, whether developing or developed, to help them solve trade cases as a way of honoring the predictability and security of this multilateral trade system (Alotaibi, 2015). The WTO has two primary functions, namely judicial and legislative. The mandate is a path through which the mechanism used to offer equality among members would accomplish the demands of the trade agreement, as stated during November 2001 inauguration of the organization (Alotaibi, 2015). This system’s latter function has advanced to characterize trade on a global level, making great achievements from it.

However, the effectiveness of the WTO has been controversial, with some scholars concluding the system to be a failure in reference to its framework. The majority of researchers, however, acknowledge the influential ability of the system in terms of helping solve disputes. Irrespective of the present controversy about this organization’s effect, the WTO’s objective is to guarantee security and permit for predictability of this multilateral firm (Alotaibi, 2015). The WTO understands business as the flow of services and goods between members; however, the transaction is not the responsibility of the member states but of private economic operators. The WTO holds an essential position to commercial law even though some stakeholders are reluctant to consent to this reality. It is agreeable that commercial law, which some individuals refer to as international legal order, has evolved causing some great empires to vanish into historical annals.

The WTO has worked as a global organization which is responsible for linking international law concepts. The organization remains an agency with an ability to solve problems as stipulated by the commercial law order in its functionality attributes (Alotaibi, 2015. These features include enforcement mechanisms and validity rules, which act as supporting aspects to the available operational specification.

The Research Methodology

The research uses a twofold approach to address the analysis that investigates the WTO’s future in terms of the dispute settlement mechanism. The first method entails using available literature about the organization, the WTO official documents, and scientific journal and books to establish and document information related to the WTO’s area of participation in the context of dispute settlement proceedings. The second method involves applying real-life cases to support more comprehension of commercial law’s functionality (Alotaibi, 2015). This technique ascertains how both developing and the developed states operate in this era, which earnestly demands commercial law adherence and the WTO’s dispute mechanisms.

Data collection will conform to the panel of data structure methods for convenience. In this regard, it is significant to note any parameters vital for estimation, as contextual regression analysis is suitable for cross-sectional data, following the least estimation technique. Importantly, the regression model tends to approximate the required assessment in an appropriate manner and without bias (Zulfikar, 2018). Since the study investigates the future of the WTO’s dispute settlement mechanism, regression is vital as it measures unit sections at various times.


The Commercial Law

Under the influence of the WTO, the international legal order has gone through immeasurable upheavals. The general evolution was not confined to homogeneous or linear perspectives, a fact that reveals the reason as to why international society still has the mark of its historical progress.

A Unique System within Commercial Law

The WTO has become a unique legal system, which confines itself to commercial law, how it operates, and its power. It took the WTO approximately 50 years to achieve its prestigious international position although it was founded through a treaty (Zulfikar, 2018). According to the international commercial law commission, an organization that exists because of a treaty under international law governance needs to have its accustomed international legal personality as one of the dispute settlement mechanisms (Zulfikar, 2018). From a perspective of avoiding possible ambiguity, the WTO’s establishment aligns in agreement with article VIII, which stipulates such an organization to have a legal character. The resultant revelation makes the WTO enjoy the immunities and privileges as significant in the execution of its functions or mechanism to settle disputes. This international personality makes the WTO dispute settlement mechanism execute its directive comfortably at the international level. The organization still owns the obligation of accomplishing contracts for its daily operational purposes, though its future implicit competencies are limited by specialized principle.

A True International Organization

Currently, the WTO has a distinct and integrated legal order to help the organization offer sets of legal rules, govern a community, and make a system. The unfortunate aspect is that its body appears to be unable to work clinically independent (Alotaibi, 2015). This occurs as a presumption of the principles of international commercial law. In this context, the WTO’s respect conforms to legal order as inter alia to another settlement mechanism and technique. This makes the agency become the states’ sovereign firm for equality. It is an international cooperation, and a good faith firm with obligation to clear disputes in peace. The body also is able to interpret Appellate law contentiously without any hesitation. Contextually, the WTO operates under general commercial law while simultaneously adhering to international trade realities.

Therefore, because of conjoining with the international commercial legal order, the organization has been empowered to produce its own system of law to work as a mechanism managing disputes. Today and in the future, economic commercial law causes the WTO to apply international commercial law circumstantially. Therefore, being truly international gives this organization a future.

Dispute Settlement Mechanism

States require admitting to sovereign equality when complying with the demands of the WTO regardless of their varied power and size. Fortunately, this principle is adhered to by the WTO agency in full capacity to the extent of encouraging most of the international economic systems to have a restricting body accompanying the agency’s plenary group. The WTO, therefore, has ensured its members participate widely from ministerial conferences to the general council as a matter of obeying commercial law (Hofmann & Kim, n.d.). Thus, the statements above show all members work in unity to conform to the demand of the organizations dispute settlement mechanism.

It is also notable that the aspects of equity are reflective of the rules of the WTO organization. For instance, the principle of non-discrimination exists in the clause of the most favored state governed by the national treatment rule. Dispute settlement mechanisms work best in the context of reciprocity, which is a central fact in the managing negotiation mechanism. Just as stated by the UN Secretary-General, equality is a fundamental factor for smooth dispute settling mechanisms (Hofmann & Kim, n.d.). The organization understands that when it comes to trading and solving disputes in countries with varied capacity, certain flexibilities become vital. Flexibility, therefore, is another dispute settlement mechanism the organization uses.

For the organization to remain stable in the future, the management understands the inter-state framework’s preservation as crucial. Conservation in this agenda is not the entire subject that would stabilize the agency unless there is the inclusion of non-state members representing civil society. This act would seek a balance between the commercial law’s demand and the firm so that the execution of the duties would be for a general interest (Alotaibi, 2015). Therefore, it means the WTO has been a great determinant of the impact of commercial law or international law in its modern operational form.

The WTO’s command of execution is peaceful as it represents the general concept of commercial law. This is the principle, which demands commitment when it comes to settling disputes. The obligation principle, which tends to lie at the pivotal point of commercial law, is also enshrined in the U.S’s Charter (Alotaibi, 2015). Solving disputes in a nonviolent way shows an envisioning of international responsibility. As a result, all states are transforming to accept responsibility for any negative impact occurring from detrimental acts.


Globalization has provoked the need for states to trade together to develop the economy. Both developed and developing states are at liberty of trading with respect to each country’s capacity. However, disputes are always bound to occur when various entities share a common agenda, such as engaging in trade. These disagreements attracted the formation of the WTO (dispute settling scheme) to help settle opposing countries for the sake of advocating for peace.

The future of this organization is somewhat unclear, which is why this study utilizes already available literature and data through a panel data structure to estimate its future. Conversely, the WTO dispute settlement scheme gets its operative powers under the influence and direction of commercial law. With the help of international legal order, the functionality of the WTO is admirable, and that is why the organization has existed for many years. It is vital to note that if the dispute settlement mechanism for the WTO will comply with commercial law, its future is guaranteed. Commercial law is refined to advocate for a smooth trading environment for all member states.


Alotaibi, N. N. (2015). The WTO’s dispute settlement body and its impact on developing countries: Problems and possible solutions. [A thesis submitted for the degree of Doctor of Philosophy in Law]. University of Essex.

Hofmann, T., & Kim, S. Y. (n.d.). Does trade comply? The economic effectivenes of WTO dispute settlement [PDF document]. Web.

Zulfikar, R. (2018). Estimation model and selection method of panel data regression: An overview of common effect, fixed effect, and random effect model. Research Gate Journal. Web.

Cite this paper


EduRaven. (2022, February 26). The Future of WTO Dispute Settlement. Retrieved from


EduRaven. (2022, February 26). The Future of WTO Dispute Settlement.

Work Cited

"The Future of WTO Dispute Settlement." EduRaven, 26 Feb. 2022,


EduRaven. (2022) 'The Future of WTO Dispute Settlement'. 26 February.


EduRaven. 2022. "The Future of WTO Dispute Settlement." February 26, 2022.

1. EduRaven. "The Future of WTO Dispute Settlement." February 26, 2022.


EduRaven. "The Future of WTO Dispute Settlement." February 26, 2022.


EduRaven. 2022. "The Future of WTO Dispute Settlement." February 26, 2022.

1. EduRaven. "The Future of WTO Dispute Settlement." February 26, 2022.


EduRaven. "The Future of WTO Dispute Settlement." February 26, 2022.