The Study On The Financial Compensation In The Mechanism Of The WTO Dispute Settlement Body

Implementation of State responsibility and a relief to the victim have been a problemin international law，because of the lack of strong enforcement mechanisms.So manypeople deny its legality. In the field of international public law, when a state implementsthe internationally wrongful act, it is asked to undertake to comply with the treaty, to payof damages, to restitute and complete other national responsibilities. Compared withinternational public law, WTO dispute settlement mechanism is the platform to resolvetrade disputes between countries and to urge the country to fulfill the obligation in thefield of international economic law. WTO dispute settlement mechanism has the mostdistinctive mechanism, which are compensation and retaliation mechanism. DSB usethese mechanisms to supervise the party to compliance the rules. Retaliation mechanismand the compensation mechanism is temporary measures to induce members to complywith the Statute of as soon as possible, but they have some Shortcoming,such as limitingthe formation of the national economy, increasing the unpredictability of internationaleconomic exchanges.In order to improve the existing system of the WTO dispute settlement mechanism,the first thing is to increase an effective alternative mechanism to promote the respondentparty to comply with the rules as soon as possible. So by comparing with internationalpublic law, many scholars have proposed to reform the WTO dispute settlementmechanism. The final compensation mechanism in the WTO is the most intensediscussion settlement mechanism. The final compensation system may be a viablemechanism.It has many advantages: it requires the complainant to the give certainamount of money as compensation for the violation, which can induce compliance withthe relevant rules and rulings; Such payments may be based on the severity of theinfringement, as well as the violation of the country’s ability to pay; Final compensationmechanism avoids the disadvantages of retaliation mechanism which restricts international trade exchanges and promotes a rules-based international trading systemwhich is in line with WTO rules-based system; Final compensation avoids adverseeffects on innocent third parties and gives relief to victims of direct pecuniary industryand so on. From the current international practice, the EU legal system would clearlydefined lines final compensation system as a remedy to play a significant role resolvedisputes between EU member states.Although scholars have summed up the advantages of monetary compensationmechanism, DSB does not use it frequently in international trade disputes. The casesinclude EC-Bananas, U.S-Section110（5） Copyright Act,2010U.S-BrazilTemporary Agreement on the Cotton Dispute.The final compensation is not designed to offset the harm but to induce respondentto comply with the rules as soon as possible. WTO dispute mechanism resolves tradedisputes between the government so local government has the power to whether itaccepts the damage and how it is allocated in the private sector with. Of course, theintroduction of final compensation system can not solve all the issues in the currentdispute resolution mechanism such as the dominant powers rules. At the same time, weneed to carry out the preliminary design of the system and improvement of the finalcompensation mechanism. It includes the calculation of the amount, scope to use, theretroactivity and the allocation of money. But I am convinced that the introduction offinal compensation system will bring significant benefits to the WTO dispute settlementmechanism and its members.