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World Trade Organization and Judicial Enforcement of International Trade Law

Title

World Trade Organization and Judicial Enforcement of International Trade Law

Author

Pelc, Krzysztof J.

Research Area

Social Processes

Topic

International Relations

Abstract

The Dispute Settlement Understanding (DSU) of the World Trade Organization (WTO) is an international court of unprecedented ambition. This essay examines why countries agreed to delegate as much power as they did to this international legal body, by looking to the rise of US unilateralism during the 1970s. I then offer an overview of the DSU's functioning, which concludes that its effectiveness derives more from the way it forces countries to negotiate in the shadow of the law than from the threat of material sanctions following noncompliance. Finally, I assess some widespread concerns about how developing countries fare in the system. I show that while there does exist a cleavage between rich and poor countries in dispute settlement, it does not lie where conventional wisdom often has it.