The Binding Force of Precedent under the Shadow of the Legal Reasoning of the WTO Dispute Settlement Understanding (DSU) Mechanism

Abstract

The Dispute Settlement Understanding mechanism works as a legal instrument to the WTO Agreement which works as a pivotal pillar in the process of the multilateral trading system. The legal credibility of the WTO Jurisprudence which has been dependent on the GATT interpretations underlying the Panels and Appellate Body reports remains controversial. The Panel and Appellate Body report following the previous decisions unless there is a good decision for deciding otherwise. This article will investigate the Panels and Appellate Body reports interpretations from a constitutional, political, and practical perspective and their impact to build a precedent under the shadow of legal reasoning.