On The Perfection Of The Retaliation System Under The WTO Dispute Settlement Mechanism

The rule of Retaliation in WTO dispute settlement mechanism which is discussed herein is one of the remedies that can be used by WTO members in the dispute settlement execution system. The purpose of absorbing the Retaliation rule into WTO dispute settlement system is to prompt the relevant WTO member whose trade policy violates the WTO rules or agreements exercising the rulings or recommendations which has been passed by DSB as soon as possible. However, according to the 20 years experience and the real cases, it is found that the Retaliation rule is not as effective as we think. The reason why the rules are not so good is complicated. There are a lot of problems and difficulties both in the system itself and in the process of being applied. In this article, the author will analyze and discuss the problems and dilemma faced by the Retaliation Rule from two aspects:legislation and application. What's more, recommendations for the rules of Retaliation will be put forward on the basis of the above analysis. In addition, there are also many revelations for developing countries in dealing with the rule of Retaliation. While, according to the roles of developing countries in the disputes, the revelations will be different.The full article contains four parts, as described below:The first part introduces the rules of Retaliation, which contains its history and development and implementation situation; Specifically describes the contents of WTO retaliation system and collects the cases since the establishment of WTO that involve rules of retaliation and makes a summary about them.The second part focuses on the analysis of the dilemma that the rule of Retaliation under WTO has to face. The dilemma is analyzed mainly from two aspects, one is the problems in the legislation, and the other one is the difficulties in applying and implementing the rule of Retaliation.The third part is the recommendations for the rule of Retaliation under WTO. This part contains two suggestions:one is to modify the defects of the Retaliation System itself in legislature; and the other is to absorb other forms of Retaliation System into the DSU.The fourth part is the suggestions for developing countries in dealing with the rule of Retaliation. The revelation and suggestions provided for developing countries are based on the roles of developing countries in the disputes.