Dispute Settlement Mechanism

A Dispute Settlement Mechanism (DSM) is a process used by organizations, like the World Trade Organization (WTO), to resolve disagreements between member countries over trade rules. When two countries have a conflict—such as disputes over tariffs or trade practices—they can submit their case to the DSM. This system provides a structured way for these countries to present their arguments, have an impartial panel review the issues, and reach a fair resolution. If a country disagrees with the decision, there are procedures to ensure compliance, helping maintain trust and stability in international trade relations.