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International Business

notes Totals are also approximate.

60 days Consultations, mediation, etc
45 days Panel set up and panelists appointed
6 months Final panel report to parties
3 weeks Final panel report to WTO members
60 days Dispute Settlement Body adopts report (if no appeal)
total = 1 year (without appeal)
60-90 days Appeals report
30 days Dispute Settlement Body adopts appeals report
total = 1 year 3 months (with appeal)

Source: Understanding the WTO: Settling Disputes - A unique contribution
The operation of the WTO dispute settlement process involves the DSB panels, the Appellate
Body, the WTO Secretariat, arbitrators, independent experts and several specialized institutions.
The General Council discharges its responsibilities under the DSU through the Dispute
Settlement Body (DSB). Like the General Council, the DSB is composed of representatives of
all WTO Members. The DSB is responsible for administering the DSU, i.e. for overseeing the
entire dispute settlement process. If a member state considers that a measure adopted by another
member state has deprived it of a benefit accruing to it under one of the covered agreements, it
may call for consultations with the other member state. If consultations fail to resolve the dispute
within 60 days after receipt of the request for consultations, the complainant state may request
the establishment of a panel. It is not possible for the respondent state to prevent or delay the
establishment of a panel, unless the DSB by consensus decides otherwise. The panel, normally
consisting of three members appointed ad hoc by the Secretariat, sits to receive written and oral
submissions of the parties, on the basis of which it is expected to make findings and conclusions
for presentation to the DSB. The proceedings are confidential, and even when private parties are
directly concerned, they are not permitted to attend or make submissions separate from those of
the state in question.
The final version of the panel’s report is distributed first to the parties, and two weeks later it is
circulated to all the members of the WTO. The report must be adopted at a meeting of the DSB
within 60 days of its circulation, unless the DSB by consensus decides not to adopt the report or
a party to the dispute gives notice of its intention to appeal. A party may appeal a panel report
to a standing Appellate Body, but only on issues of law, and legal interpretations developed by
the panel. Members may express their views on the report of the Appellate Body, but they cannot
derail it: an Appellate Body report shall be adopted by the DSB and unconditionally accepted by
the parties, unless the DSB decides by consensus within thirty days of its circulation not to adopt
the report.
Within thirty days of the adoption of the report, the member concerned is to inform the DSB of
its intentions; if the member explains that it is impracticable to comply immediately with the
recommendations and rulings, it is to have a “reasonable period of time” in which to comply. If
no agreement is reached about the reasonable period for compliance, that issue is to be the subject
of binding arbitration. If there is a disagreement as to the satisfactory nature of the measures
adopted by the respondent state to comply with the report that disagreement is to be decided by
a panel, if possible the same panel that heard the original dispute, but apparently without the
possibility of appeal from its decision.
If all else fails, two more possibilities are set out in the DSU:
1. If a member fails within the “reasonable period” to carry out the recommendations
and rulings, it may negotiate with the complaining state for a mutually acceptable
compensation.
2. If no agreement on compensation is reached within twenty days of the expiry of the
“reasonable period”, the prevailing state may request authorization from the DSB to

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