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Today every dispute has to be settled within a fixed time period.

Normally this was not there in any dispute settlement mechanism. The mechanism

is time bound.

Steps taken:

1. If any dispute arises the consultation process has to start within 60 days.

2. If any solution is not found within 60 days, then the next process starts like

conciliation, mediation, good offices, etc. DSB (Dispute settlement body)

establishes panels.

3. Terms of references: DSB calls both the parties to come face to face and decide

the terms

4. Composition of panels: director general of WTO directs the entire process.

5. Panel examination: once director general appoints panel, the panel has to finish

the proceedings within 6 months. If matter is relating to perishable goods, it would

be 3 months. Urgency decides the term.

6. Submission of report: panel submits interim report to the concerned parties.

7. Circulate: after discussion with the concerned parties, panel circulate the report

to DSB.

8. DSB adopts panel reports within 60 days unless there is an appeal. If it is an

appeal not exceeding 90 days.

9. Final stage: DSB monitors implementation of recommendations by the panel.

DSB: DSB is nothing but WTOs general body composition. DSB has a power to establish

panels with recommendation of DG, adopt panel reports, appellate body reports, maintain

surveillance of implementation and rulings and recommendations, and authorities suspension of

concessions and obligations.

WHO CAN BE THE PANEL MEMBERS? Panel members should be well qualified, government

and non-government officials. Panel approved by the general council. Apart from trade or law

officers, they can pick up from other officials also. Person should be in the body of WTO.

RETAILATION OF DISPUTE: enforcement in sovereign countries no police force. WTO is

different from other intl organisations. Retaliate against the respondent to extract compensation

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arbitration is a accepted dispute settlement mechanism. This means that even WTO need not

ignore the imp of arbitration in intl trade or comm. Related matters.