The USA and the Challenge of the WTO Dispute Settlement Body

WTO is an international regime which regulates the trade policies of its member states. Trade dispute among members are referred to Dispute Settlement Body, whose efficiency has been recognized by its members and other international organizations. Nevertheless, the Appellate Body’s adjudications have recently been contested by US, paralyzing its functions by blocking the nomination of new judges. The objective of this research is to know the roots and possible implications of the crisis. The methodology is descriptive-analytical and findings like countries’ approaches, DSB impact on fair trade, consequences of US position, existing proposals and prediction of future situation will be discussed. The innovation of the research is the analysis of scenarios which might reform the international trade system. The outcome of the research is that although the American position is affected by its interpretation of the jurisprudence of DSB/AB, but it is also highly motivated by US interpretation of the WTO principle of universalism, believing that Appellate Body is acting beyond the agreed terms in Uruguay Round and its modus vivendi needs to be modified. However, the uniform support of all members toward WTO Appellate Body might complicate US achievement this time.