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Essay text:
It does not impose new |
|obligations, but it does enforce those already agreed. |
|The rationale behind the Dispute Settlement Understanding (DSU) of the WTO is to provide Members with a clear legal framework for solving |
|disputes which may arise in the course of implementing WTO agreements. Clearly, agreed solutions between Members are the most desirable way|
|of solving disputes. However, if this is not possible, Members can ask for panels and (possibly) appeal procedures where the WTO, by |
|interpreting the rules, solves the dispute. If a Member does not comply with WTO recommendations on bringing its practice in line with WTO |
|rules, then trade compensation or sanctions, for example in the form of duty increases or suspension of WTO obligations may follow...
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