| Transnational regional trade is the most important form of economic development of the world, regional trade dispute depends more on the development of international laws. Based on the theory that international laws can be divided into"soft laws"and"hard laws", this paper draws the conclusion that the mechanism of dispute settlement is indispensable to the application of international laws, strengthening the power of rules of international law . This is the central theory of"hard laws". The initial aspect of"hard laws"lies in that the mechanism of trade disputes settlement can enable regional trade agreement to function effectively The mechanism of dispute settlement of regional trade has two functions : one is judicial interpretation ,the other is dispute settlement. By the first function, judicial interpretation can remedy the flaws of regional trade agreement and transform"standard"which is characteristic of soft laws into"rules". By applying regional trade agreement to a specific , the mechanism of dispute settlement can re-allot rights and obligations, ensure the proper performance of rights and obligations, and have the trade disputes settled judicially . This paper draws another two conclusions: 1,mechanism of dispute settlement needs justice procedure ; 2,mechanism of dispute settlement can realize justice by balancing the interest of the countriesThe establishment of China—Kazakhstan Free Trade Area is on the schedule ,so it is time for the foundation of mechanism of dispute settlement of China—Kazakhstan Free Trade Area. In guidance of the theory of"hard laws", this paper analyzes the principle of laws that this mechanism should obey. According to the theory of legal values ,the paper concludes that China—Kazakhstan Free Trade Area needs justice procedure and should balancing the interest of China and Kazakhstan. This paper also emphasizes the China—Kazakhstan Free Trade Area should avoid the tendency of judicial activism.
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