What is the process for resolving a dispute between two countries?

Resolving disputes between two countries that involve international trade law can be a complicated process, but there are specific steps that both countries can take to ensure that their interests are heard and addressed. First, if two countries are engaged in a dispute, they can attempt to settle the matter privately by negotiating and reaching an agreement between themselves. The parties may decide to use a mediator to help facilitate negotiations and may consider alternative dispute resolution (ADR) methods such as arbitration and conciliation. Parties can also seek to resolve disputes through the World Trade Organization (WTO) dispute settlement system. If negotiations and attempts at private settlement are unsuccessful, the parties may move to a more formal process of adjudication. The parties may pursue litigation in a national court system or may turn to an international tribunal for a formal dispute resolution. For example, the parties may choose to litigate in a WTO dispute settlement panel or utilize a regional dispute settlement body, such as the North American Free Trade Agreement (NAFTA). Each state must adhere to the laws of international trade and any dispute resolution process must take into account the interests of all affected countries and individuals. This includes considering the implications of any ruling, including the economic and political impacts, and how the dispute resolution process may affect future trade relations between two countries. Ultimately, the parties must find a resolution that is satisfactory to all parties involved, while abiding by international trade law.

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