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    THE WTO DISSPUTE SETTLEMENT

    MECHANISM

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    WTO Dispute Settlement Understanding

    Dispute settlement is regarded bythe World Trade Organization (WTO)

    as the central pillar of the multilateraltrading system and as the

    organization's "unique contribution tothe stability of the global economy

    dispute arises !hen one membercountry adopts a trade policy

    measureor taes some actionthatone or more fello! membersconsiders to a breach of WTO

    agreements or to be a failure to li#eup to obligations

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    Steps in a WTO Dispute

    Be!re t"e #rst "earing$irst "earing% At t"e #rstsustentati&e meeting ! t"e

    panel%E'perts%

    $irst drat$

    Interim rep!rt%(e&ie)%

    $inal rep!rt%

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    H!) l!ng it ta*e t! settle adispute%& Days consultations mediation etc

    * Dayspanel set up and panellist+s appointment

    % months,nal panel report to parties- !ees,rst panel report to WTO members

    %& DaysDispute .ettlement /ody adopt reports

    Total01year(!ithout appeal)

    %&2& Daysappeals report-& Days Dispute .ettlement /ody adopt appealreports

    Total01y-m(!ith appeal)

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    Bene#ts !r de&el!ping +!untries

    Impr!&ement in Bargaining P!)er%

    Independen+e t! De&el!ping

    C!untries,eneral Spirit ! C!mplian+e )it"t"e DSM (esult%

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    O-sta+les $!r

    De&el!ping C!untries

    O-sta+les $!r De&el!ping Countries

    Limited Legal Resources

    Inade.uate C!mpensati!n

    La+* ! En!r+ement Capa-ilit/

    T"e DSU Pr!&isi!ns 0 Ine.ualit/-e"ind t"e Arti+les

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    W"/ Parti+ipati!n in WTO Dispute Settlement Matters%

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    W"/ M!st De&el!ping C!untries D! N!tParti+ipate

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    CONCLUSION

    The D.3 of the WTO is a multilateral ruleorientedmechanism4 lthough many problems still e5ist !ith its

    recently acno!ledged special concern aboutde#eloping countries+ particular needs and interests it

    has brought about many positi#e and fa#orablechanges to de#eloping member countries+ status4 6romthe perspecti#e of equality !eaer states no! possess

    a relati#ely better en#ironment and more po!er todefend their WTO interests through this ne! dispute

    settlement system47o!e#er de#eloping countries stilldo not en8oy a really neutral playing ,eld !here they

    can really trade equitably and e9ciently !ith de#elopedstates4 Though the D.: pro#isions are not biasedliterally de#eloping countries are not able to fully tae

    ad#antage of the D.3 in practice e#en if certainpro#isions are supposed to fa#our them in principle

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    THAN1 2OU