DISPUTE SETTLEMENT IN THE GATT AND IN THE WTO

The author describes how the WTO dispute settlement procedure differs from its predecessor in the GATT, and asks if the number of complaints can be expected to decrease as a result of the reform. A major aspect of the new procedure is clear and strict deadlines at all stages of t he process. Furthermore, the GATT's traditional consensus principle ha s been turned on its head in matters of dispute settlement, Thus, in t he WTO a consensus is required to stop the process at any stage. In co nsequence, it is very difficult to block the establishment of a panel or the adoption of a panel report. Because of the enhanced deterrence effect, the overall number of violations will probably be smaller with this reform than it would otherwise have been. Nevertheless, other fa ctors make it likely that the number of disputes is going to increase rather than decrease. For one thing, the new dispute settlement proced ure is probably more effective, and hence more attractive for a compla inant. In addition, the WTO agreement includes a broader spectrum of p roducts than did the GATT.