How does the WTO settle disputes between nations?

The World Trade Organization (WTO) is an international body that serves to promote free and fair trade between nations. As part of its mission, the WTO also resolves disputes between nations that are related to the international trading system. The WTO accomplishes this by working to settle disputes between nations through agreeing on a mutually acceptable solution. When a country raises a dispute with another country, the two countries might attempt to settle the dispute by negotiating a mutually acceptable solution. The WTO can be called upon to provide assistance during such negotiations. If the two countries are unable to reach a solution, the WTO can also provide a ruling. A panel of experts from both countries may gather to review the dispute and provide a ruling. A ruling by the WTO is legally binding, meaning that the countries must abide by the ruling or face penalties for not following it. For instance, if the ruling was in favor of the country claiming the trade violation, the offending country would be expected to comply by providing compensation or taking measures to prevent future violations. On the other hand, if the ruling was in favor of the country accused of the trade violation, the accusing country would be expected to take appropriate steps to comply with WTO rulings. In South Dakota, state government entities and organizations may become members of the WTO and use its dispute settlement mechanism when necessary. This allows South Dakotans to resolve disputes related to international trade, as well as benefit from the protections and welfare of international trade laws that the WTO enforces.

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How does the WTO settle disputes between nations?

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