Use of the WTO Trade Dispute Settlement Mechanism by the Latin American Countries Dispelling Myths and Breaking Down Barriers

Abstract

The WTO's Dispute Settlement Mechanism (DSM) has been hailed as a fundamental aspect of the Multilateral Trading System for developing countries. At the same time developing countries face many challenges to ensure their effective participation in the mechanism. This paper presents statistical evidence of how Latin-American countries have been very active in their use of the DSM, especially when their use of the mechanism is compared to their participation in world trade. This paper also analyses why, to a large extent, Latin American countries have overcome the challenges of participating in the DSM; and have done so by coming up with innovative and creative solutions, without deviating from the guidelines established by WTO rules.

Keywords: Dispute settlement, Latin-America, participation, challenges, litigation, retaliation, consultations, negotiations, panel

JEL Classification: F13, F51, F53, K33, K41, K42