First Stage: up to 60 days
Before taking any action countries in dispute are allowed to resolve their differences themselves.
Second Stage: up to 45 days
If consultations fail, complaining country can ask for a panel to be appointed. The panel makes ruling and recommendations to help the Dispute Settlement Body.
What does it really mean? Do some research to find an actual example or make an example up to illustrate the process in more detail.
The World Trade Organization formulated a guideline to follow in situations where two or more countries engage in some form of trade dispute. The WTO's dispute settlement agreement is known as the Understanding on Rules and Procedures Governing the Settlement of Disputes. The WTO dispute settlement guideline underscores the rule of law thus enabling the trading system to be more secure and more predictable. The WTO dispute settlement rules are very clear and they are furnished with timetables within which the case must be settled.
In case of a trade dispute, member countries of WTO cannot take actions unilaterally. They must use the multilateral system of settling disputes and must respect the outcome of the settlement. ...
This solution illustrates the process that is used by the WTO and GATT to settle disputes