The scope of rules that regulate international trade expanded significantly
with the emergence of the present international trading system
following the conclusion of the Uruguay Round of trade negotiations in
1995 that led to the creation of the World Trade Organization (WTO).
TheWTO is an organization that seeks to implement a rules-based, open
trading system. A rules-based system is one that offers predictability in
terms of the regulatory framework within which trade takes place.
Maintaining a predictable trading environment in turn requires transparency
and rule of law.
Within theWTO system, transparency is achievedmainly through the
peer review of the notification obligations contained in the WTO
Agreement and the rule of law through the dispute settlement mechanism.
Since 1995 WTO dispute settlement has proved most helpful in
resolving trade disputes between WTO members and thereby providing
the security and predictability needed to ensure a well-functioning
international trading system. This mechanism has received extensive
attention in academia and in government circles.
However, in today’s highly complex world, the WTO alone cannot
tackle all the legal issues that arise from the implementation of its many
different agreements, each dealing with a different aspect of international
trade. There is a great deal that governments which are WTO
members can do at the domestic level which may contribute to the
common ultimate objective: creating as seamless and as predictable as
possible an environment in which commercial entities can conduct their
commerce. Thus, the involvement of domestic courts in the resolution of
legal disputes affecting international trade is an important element of
providing the ideal rules-based trading environment.