The Effectiveness of the WTO Dispute Settlement System: A Statistical Analysis

The dispute settlement system (DSS) of the World Trade Organization (WTO), which is considered as the “Jewel in the Crown” of the WTO, is also the busiest of its kind. While this no doubt reflects its success, the system is far from perfect, and has drawn criticism both from within and without the ranks of its users. This chapter presents a statistical analysis of over 20 years of WTO DSS, with a particular emphasis on questions of effectiveness. Questions examined include: 1. Who are the member states using the WTO DSS? Is it used equally by developed, developing and least developed countries? Are poor countries more likely than rich ones to settle cases? Is there a correlation between the Gross Domestic Product (GDP) or GDP per capita of WTO members and the extent to which they use the system? 2. What is the extent of compliance with binding recommendations of the DSB by member states? Are compliance disputes bona fide disputes about the meaning of a DSB ruling, or are they part of delaying tactics? Who are the members that do comply and who are the ones that do not? 3. How long do DSS procedures take on the average, from request for consultations to adoption of recommendations? Has this time changed over time, from when the system began until today? 4. Finally, the chapter will address the problem of the Appellate Body’s inability to remand the case to the original panel for reconsideration and determination of relevant facts. It will examine how often this lack of authority frustrates the system’s ability to conclude the DSS procedures with a clear ruling on all the disputed issues.