Dispute settlement mechanism in the World Trade Organization and inequality: A comparative approach from the perspective of developed and developing countries

Since the barter system, foreign trade has continuously developed, leading to the emergence of international economic organizations. As global accessibility between countries has improved, trade has increased accordingly. In such an environment, commercial disputes have become inevitable. Initially, countries established the General Agreement on Tariffs and Trade (GATT) to regulate this trade environment, and later, to address the shortcomings of this system, the World Trade Organization (WTO) was formed. Within the WTO, the Dispute Settlement Mechanism (DSM) was structured to provide a legal framework for resolving disputes. The DSM functions as a mechanism through which member countries can file complaints against one another on various issues, with cases being examined in panel proceedings. In this study, the foreign trade data and development levels of the 164 WTO member countries were first examined. Then, a total of 630 cases filed between January 1, 1995, and November 2024 were evaluated through document analysis. By analyzing the cases brought by member countries through the WTO's DSM, data related to the outcomes of the disputes were obtained. Subsequently, countries were categorized as developed or developing, with examples presented based on dispute outcomes. The cases were also classified by sector based on their subject matter. The study concludes that the DSM generally mediates in favor of developed countries, with both panel and appellate outcomes predominantly favoring these nations. Furthermore, it was found that the Agriculture and Food sector constitutes the most frequent subject of disputes within the DSM.