9 - Remedies

Summary

This chapter discusses the remedies that are available under WTO law. It explains that the preferred solution to a dispute is a mutually agreed solution. If this is not possible, and the defending party does not implement any adverse rulings, the defending party may offer compensation (in the form of equivalent trade concessions). The last and least desirable option is retaliation, or the suspension of concessions. The chapter explains the procedures for each of these possible remedies, with a particular focus on the arbitration under Article 22.6 of the DSU of the amount of retaliation proposed by the complaining party. The chapter also discusses the “sequencing” problem arising out of the deadlines to request the right to retaliate in the DSU. Finally, the chapter discusses the special rules governing disputes over subsidies and the role played by suggestions by the panel and Appellate Body on implementation.