Financial Remedies in WTO Dispute Settlement System

Despite the great success of WTO dispute settlement, it includes several weaknesses and shortcomings which required to be amended. Among various proposals, monetary or financial compensation has been one of the main concerns of the members of this organization. Although financial remedies have been ruled out under Article 22.1 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), but because of its voluntary and non mandatory nature, it has not been able to lead offending members to greater adherence to the rules and regulations. This paper attempts to outline the most important predictive basis for the sanction, the critique is explained and its design is analyzed.