International Commercial Law. How does the Dispute Settlement System (DSS) Work?

Essay from the year 2019 in the subject Law - Civil / Private / Trade / Anti Trust Law / Business Law, grade: A+, , language: English, abstract: This paper will discuss how the Dispute Settlement System (DSS) works and the problems the system has been encountering. The paper will also discuss the problems affecting the system including adherence of the DSS to the Dispute Settlement Understanding (DSU), US domination and criticism, compliance, and constraint of resources.The Dispute Settlement Understanding is used by the World Trade Organization (WTO) as one of the supporting pillars in the multilateral trading system. The efficient resolution of disputes is the organisation’s way to contribute to global economic stability. The system is the WTO's judicial arm developed to help the member countries solve trade disputes that might arise between them; it also has enforcement mechanisms.When compared to the previous system, the General Agreement on Tariffs and Trade (GATT 1947), DSS is formal and well designed with clear stages and demands more discipline when settling disputes . However, despite the paramount success the system has achieved over the twenty-four years of its existence, the DSU has had various problems.