Tilting the Balance Against the South
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The World Trade Organization and its Dispute Settlement System: Tilting the balance against the South (Trade and Development Series No. 9) By Chakravarthi Raghavan -------------------------------------------------------------------------------- Preface The Dispute Settlement Understanding (DSU) has been the flagship of the World Trade Organization (WTO), proclaimed as the most important pillar of the rules-based WTO system. The developing countries, in particular, had expected that the new dispute settlement process would help the weaker trading partners in enforcing the rights and obligations under the various WTO agreements. In fact, the supposed benefits of such an effective dispute settlement system were one of the main persuasive factors for several developing countries to agree to the Uruguay Round agreements. Though the DSU has brought about some degree of predictability and efficiency in the resolution of disputes, the utility of the system in actual operation has fallen far short of the initial expectations and euphoria. Furthermore, in some respects, it has operated against the interests of the developing countries. Mr Chakravarthi Raghavan's paper analyzes in detail the problems that have come to the fore in the last five years of the operation of the system. It cites some specific cases to highlight the problems. In fact, his analysis of the issues suggests an urgency in bringing about improvement in the system. It needs the serious attention of the General Council of the WTO, in particular, that of the developing- country Members. The dispute settlement process is very costly for the developing countries. Most of the time, they have to call upon the assistance of the law firms of major developed countries which charge heavy fees. The developing countries would therefore not be as prompt and willing to initiate the dispute settlement process for exercise of their rights as would a developed country. Hence there is a basic imbalance in rights and obligations between a developing country and a developed country, because of a vast differential between the capacities of these two sets of countries to invoke the enforcement process.
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