Using the dispute settlement mechanism (DSM) as an indicator for the participation of developing nation in WTO

Abstract

The dispute settlement mechanism (DSM) of the World Trade Organization (WTO) can best be described as a referee in a boxing match between two opponents from two different countries. Each has his own tricks and strategies, but without a referee the match would be unfair and unregulated. While this undeniably reflects its performance, the program is far from flawless and has received scrutiny from inside and outside the ranks of its users. This paper presents an analysis of more than 20 years of the WTO DSM, with emphasis on issues if developing counties can use the DSM as indicator for their continuous participation in the WTO. The questions analysed include: Who are the Member States that use the WTO DSS? Is it used equally by developed, developing and least-developed countries? Are developing countries more likely to resolve disputes than wealthy ones? Is there a correlation between the Gross Domestic Product (GDP) or GDP per capita of WTO members and the extent to which they are using the system? What is the extent to which Member States comply with the DSB 's binding recommendations? Who are the members who do, and who are the ones who do not? How long do the DSM procedures take on average, from the consultation request to the adoption of recommendations?