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Economics on the Net:

How the World Trade Organization Settles Trade Disputes

A key function of the WTO is to adjudicate trade disagreements that arise among nations. This application helps you learn about the process that the WTO follows when considering international trade disputes.

Title: The World Trade Organization: Settling Trade Disputes

Navigation: Go to http://www.wto.org/english/thewto_e/whatis_e/tif_e/disp1_e.htm to access the WTO's Web page titled Understanding the WTO: Settling Disputes.

Application: Read the article; then answer the following questions.

  1. As the article discusses, settling trade disputes often takes at least a year. What aspects of the WTO's dispute settlement process take the longest time?

  2. Does the WTO actually "punish" a country it finds has broken international trading agreements? If not, who does impose sanctions?





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