How does the WTO settle disputes between nations?

The World Trade Organization (WTO) is responsible for resolving disputes between nations that arise out of international trade activities. When two or more countries have a trade-related disagreement, they may request that the WTO mediate the dispute. To begin the dispute resolution process, countries submit a request for consultations. In this document, the countries outline the issues they disagree on and suggest what the resolution should be. After the WTO receives the request for consultations, it will select a suitable panel of experts to review the case and provide a recommendation. The appointed experts will review the facts presented by both sides and attempt to construct a mutually agreeable solution. They will also consider relevant trade regulations and international laws when making their recommendation. If the countries do not agree to the panel’s recommendation, the WTO will attempt to bring about a mutually acceptable solution. This may involve inviting the countries to negotiate a settlement or referring the case to an arbitral tribunal. The tribunal will hear arguments from all sides and then decide on the most appropriate solution. Ultimately, the WTO’s decisions are binding and must be followed by the countries that are involved in the dispute. The WTO will also monitor the situation to ensure that the countries comply with the agreement. If the agreement is not honored, the WTO may impose trade sanctions on the offending country.

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How does the WTO settle disputes between nations?

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