ANNEX 2 UNDERSTANDING ON RULES AND PROCEDURES GOVERNING THE
What is the Dispute Settlement Understanding of the rules and procedures?
The Dispute Settlement Understanding of the World Trade Organization (WTO) establishes a set of rules and procedures and provides a forum for resolving trade disputes between WTO member countries.
Who sets out the procedures and rules that define today's dispute settlement system?
The current dispute settlement system was created as part of the WTO Agreement during the Uruguay Round.
What is Article 25 of the WTO dispute settlement understanding?
Article 25 allows for “expeditious arbitration within the WTO as an alternative means of dispute settlement [. . .] of certain disputes that concern issues that are clearly defined by both parties [. . .] which shall agree on the procedures to be followed.” The vague language of Article 25 implies that members are
- The rules are enforced by the members themselves under agreed procedures that they negotiated, including the possibility of trade sanctions.
But those sanctions are imposed by member countries, and authorized by the membership as a whole.
Annex 2 incorporates the Understanding on rules and procedures governing the settlement of disputes. Annex 3 relates to the Trade Policy Review Mechanism (TPRM) of WTO members.