How does the WTO settle disputes between nations?

The World Trade Organization (WTO) is the global body responsible for regulating international trade and settling disputes between nations. In California, a dispute between two nations can be resolved through the WTO Dispute Settlement Mechanism (DSM). The DSM is a procedural process used to resolve conflicts in international trade between two or more nations. The dispute settlement process begins when one nation files a complaint against another nation with the WTO. The two sides then submit their arguments to a dispute settlement panel, which is composed of three independent trade experts. The panel will then conduct a fact-finding investigation and issue a ruling on the dispute. The ruling is binding and can include compensation for the wronged party. The WTO can also set up an implementation period, which allows the nations involved in the dispute to work together to reach an agreement while still following WTO rules. The WTO will oversee the implementation period, and if necessary, may step in and negotiate a resolution between the two nations. If the two nations are unable to reach a resolution during the implementation period, the WTO will refer the matter to arbitration. Arbitration is a process that involves mediating an agreement between the two parties. Arbitration allows the two parties to come to a mutually agreeable resolution, and the final decision is binding.

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How does the WTO settle disputes between nations?

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