WTO Challenges: Dispute Settlement System and the reasons of non-compliance of Developing Countries

Abstract

Developing Countries in WTO system are facing the non – compliance under Dispute Settlement Body (DSB) in cases where respondent mainly developed country is not following the DSB recommendations and proceedings within reasonable period of time. As a remedy for that WTO includes compensation and suspension of concessions or other obligations. By other obligations is meant retaliation. Recently more and more works are underlining the weak sides of retaliation process. Thesis is focused on better understanding the language of law stated in DSB as well as analysing the available options for developing countries to use as retaliatory measures vis-à-vis developed states. Throughout the research they have been pointed out the usage of cross – retaliation under Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement for developing countries to face the economic and political power of developed states. For better understanding there is provided detailed analysis of the working structure of DSB system as well as there are presented relevant cases. Furthermore, there is discussed both positive and negative sides of cross – retaliation implementation. In the end of the thesis, there would be offered possible enhancements and solutions for making DSB to work even in a more efficient way.