Transformation of the WTO Dispute Settlement System in Facing the Trends of Deglobalization and Protectionism: A Developing Country Perspective A Developing Country Perspective.
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Abstract
The World Trade Organization (WTO) dispute settlement system has been a crucial pillar of the multilateral trading system, ensuring legal certainty and stability in international trade. However, in recent years, this system has faced an unprecedented crisis due to the paralysis of the Appellate Body, triggered by the persistent blockade of judicial appointments, primarily by the United States. This institutional deadlock coincides with the growing trends of deglobalization and economic protectionism, characterized by increasing unilateral trade measures, escalating trade wars, and the erosion of trust in multilateral institutions. These developments have disproportionately impacted developing countries, which rely on a rules-based dispute settlement mechanism to protect their trade interests against more powerful economies. Despite their majority representation in the WTO, developing countries face structural challenges in accessing and utilizing the dispute settlement system effectively, including limited financial and legal resources, procedural complexities, and the risk of economic retaliation. This paper examines the ongoing transformation of the WTO dispute settlement system from the perspective of developing countries, assessing the challenges they face, the proposed reform initiatives, and their implications for global trade governance. Employing a normative legal approach with qualitative analysis, this study highlights the urgency of inclusive reforms to ensure a more equitable and effective dispute resolution mechanism within the WTO framework.
Article Details
How to Cite
Wala, G. (2026). Transformation of the WTO Dispute Settlement System in Facing the Trends of Deglobalization and Protectionism: A Developing Country Perspective: A Developing Country Perspective. Padjadjaran Journal of International Law, 9(2), 67-85. https://doi.org/10.23920/pjil.v9i1.2203
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This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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CoinUnited. “Perang Dagang AS-China: Kisah Tak Berujung Tarif dan Ketegangan.” March 19, 2025. https://coinunited.io/learn/id/us-china-trade-war-the-unending-saga-of-tariffs-and-tensions.
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Fobia, Maranatha L.H., Tri Budiyono, and Jumiarti. “Pemisahan dan Pembagian Kekuasaan terhadap Appellate Body World Trade Organization.” Refleksi Hukum: Jurnal Ilmu Hukum 8, no. 2 (April 2024): 183-202. https://doi.org/10.24246/jrh.2024.v8.i2.p183-202.
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Hoda, Anwarul. WTO reform: Issues in special and differential treatment (S&DT). Working Paper No. 406, 2021.
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Kusnowibowo, Ahmad Saleh. Penyelesaian Sengketa Dagang Antar Negara dalam Free Trade Agreement (FTA) dalam Kerangka WTO dan ASEAN. Edisi pertama. Jakarta: Kencana, 2020.
Latifah, Emmy. “Eksistensi Prinsip-Prinsip Keadilan Dalam Sistem Hukum Perdagangan Internasional.” PADJADJARAN Jurnal Ilmu Hukum 2, no. 1 (2015): 64-85. https://doi.org/10.22304/pjih.v2n1.a5.
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Meagher, Niall. “Representing developing countries before the WTO: the role of the Advisory Centre on WTO Law (ACWL).” Robert Schuman Centre for Advanced Studies Research Paper No. RSCAS (2015).
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Morse, J.C., and R.O. Keohane. “Contested Multilateralism.” Review of International Organizations 9, no. 4 (2014): 385-412. https://doi.org/10.1007/s11558-014-9188-2.
Mustomi, Otom, Indra Ferianto, Asep Supena, M. Taufik Hidayatullah, Neneng Siti Maryam, Dadan F. Annisa, Ahmad Susanto, and Said Minardi. Globalisasi dan Perubahan Sosial Politik. Medan: PT Media Penerbit Indonesia, 2024.
Nia, Zairotul Ma'rifah, Fitriyah Fitriyah, and Maretha Ika Prajawati. “Analisis reaksi pasar terhadap perubahan auto rejection 15% menjadi auto rejection simetris.” Jurnal Ecogen 6, no. 4 (2023): 616-626.
Nurhayati, Irna, and Aminoto. “Kebijakan Impor Indonesia Atas Produk Hewan Pasca Putusan Mahkamah Konstitusi Nomor 129/PUU-XIII/2015.” Jurnal Konstitusi 19, no. 1 (March 2022). https://doi.org/10.31078/jk1917.
Peres, Ana. “WTO: Challenges and Opportunities.” Research Briefing, March 25, 2024. https://commonslibrary.parliament.uk/research-briefings/cbp-9942/.
Schram, Ashley, Ronald Labonte, Phillip Baker, Sharon Friel, Aaron Reeves, and David Stuckler. “Kerangka Konseptual untuk Menyelidiki Dampak Perjanjian Perdagangan dan Investasi Internasional terhadap Faktor Risiko Penyakit Tidak Menular.” Kebijakan dan Perencanaan Kesehatan 33, no. 1 (January 2018): 123-136. https://doi.org/10.1093/heapol/czx133.
Soeparna, Inayatun, and Nilam Andalia Kurniasari. “Analisis Pengaruh Brexit dan Kebijakan De-Globalisasi Perdagangan Amerika Serikat terhadap Indonesia Ditinjau dari Hukum Perdagangan Internasional.” (2017).
Solikhin, Riyadus. “Sistem Penyelesaian Sengketa Dagang Internasional dalam Kerangka WTO: Mekanisme, Efektivitas Pelaksanaan Putusan dan Tindakan Retaliasi sebagai Upaya Pemulihan Hak.” Padjadjaran Law Review 11, no. 1 (2023): 114-127.
Suhradi, Denan Reina Andini. Kebijakan Perdagangan Amerika Serikat Terkait Kebangkitan Tiongkok di Kawasan Asia Tenggara. Thesis, Universitas Katolik Parahyangan, 2019.
Suherman, Ade Maman. “DISPUTE SETTLEMENT BODY-WTO dalam Penyelesaian Sengketa Perdagangan Internasional.” Jurnal Hukum & Pembangunan 42, no. 1 (March 2012): 1-20.
Tempo.co. “WTO Akan Hidupkan Lagi Pengadilan Banding.” April 26, 2023. https://www.tempo.co/ekonomi/wto-hidupkan-lagi-pengadilan-banding-825531.
Wahyuni, Rani Sri, Zulfikar Jayakusuma, and Ledy Diana. “Eksistensi Multi-Party Interim Appeal Arbitration Arrangement sebagai Arbitrase Pasca Kekosongan Anggota Appellate Body World Trade Organization.” Pattimura Legal Journal 3, no. 3 (December 2024): 144-158. https://doi.org/10.47268/pela.v3i3.15745.
World Trade Organization. “The Multi-Party Interim Appeal Arbitration Arrangement (MPIA).” https://wtoplurilaterals.info/plural_initiative/the-mpia/.
World Trade Organization. “Understanding on Rules and Procedures Governing the Settlement of Disputes.” https://www.wto.org/english/tratop_e/dispu_e/dsu_e.htm.
World Trade Organization. Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). Geneva: WTO.