THE ROLE OF THE WTO IN RESOLVING TRADE DISPUTES: A COMPARATIVE ANALYSIS OF WTO DISPUTE SETTLEMENT AND COMMERCIAL ARBITRATION

AUTHORS – MS. SUSHMITA SINGH* & DR. MANISH KR. SINGH **

* STUDENT AT NIMS UNIVERSITY JAIPUR

** ASSISTANT PROFESSOR AT NIMS UNIVERSITY JAIPUR

BEST CITATION – MS. SUSHMITA SINGH & DR. MANISH KR. SINGH, THE ROLE OF THE WTO IN RESOLVING TRADE DISPUTES: A COMPARATIVE ANALYSIS OF WTO DISPUTE SETTLEMENT AND COMMERCIAL ARBITRATION, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (8) OF 2025, PG. 1068-1074, APIS – 3920 – 0001 & ISSN – 2583-2344

ABSTRACT

In an era marked by increasing globalization, trade disputes have become inevitable. The mechanisms for resolving such conflicts are pivotal for sustaining economic cooperation and legal certainty. This research proposes to examine the role of the World Trade Organization (WTO) Dispute Settlement Body (DSB) in resolving international trade disputes, juxtaposed against the framework of commercial arbitration. While the WTO DSB is widely regarded for its structured and enforceable adjudication process, commercial arbitration offers a flexible and private resolution method, often preferred in corporate circles. The comparative analysis seeks to highlight the strengths and limitations of both mechanisms with a view to proposing hybrid models that could enhance global trade governance. The World Trade Organization (WTO) plays a pivotal role in maintaining the stability and predictability of the global trading system through its Dispute Settlement Mechanism (DSM). In recent years, however, the mechanism has come under scrutiny due to procedural delays and the paralysis of the Appellate Body. In parallel, commercial arbitration has emerged as a preferred mode for resolving trade-related conflicts, especially in the private sector. This research aims to critically examine the effectiveness, efficiency, and enforceability of WTO dispute resolution vis-à-vis international commercial arbitration. Through a comparative lens, this study will evaluate the procedural architecture, stakeholder satisfaction, and institutional legitimacy of both mechanisms. Ultimately, it seeks to explore whether these mechanisms are complementary or competitive in the broader context of international trade governance.

Keywords: WTO, Dispute Settlement Body, Commercial Arbitration, Trade Disputes, International Trade Law, Alternative Dispute Resolution, Legal Framework, Enforcement, Confidentiality, efficiency, confidentiality, cost-effectiveness, business relationships, enforceability, legal framework, dispute resolution