The Demise of WTO Dispute Settlement: Are Dispute Settlement Mechanisms Under Free Trade Agreements a Viable Substitute?

Abstract

With the likely demise of the WTO dispute settlement mechanism as of December 11, 2019, the question arises as to whether regional trade agreement (RTA) dispute settlement mechanisms such as those in the recent US-Mexico-Canada Agreement can provide an acceptable alternative. The paper concludes that the answer is "no," largely because most such mechanisms can be blocked by respondents simply by their refusal to appoint panelists.

Keywords: WTO, USMCA, CPTPP, free trade agreements, dispute settlement

JEL Classification: F1, F11, F13