This article reflected upon dispute settlement mechanism of World Trade Organisation and its significance in international trading. It starts with a brief introduction that states structure of WTO and the objective of WTO. It also describes what is the legal body prior to the WTO for resolving trade disputes and the. The article than provides a historical background of Dispute settlement mechanism of WTO and how Dispute Settlement Understanding will come into force. It also provides information regarding article XVIII of GATT 1947 and Uruguay round negotiation and summarizes the dispute settlement body and powers of DSB. The article also describes various methods of disputes settlement that are adopted by the WTO like consultation, mediation, panel proceedings and appellate body procedures. It also states how India become the part of WTO dispute settlement and what challenges faced by the WTO in resolving trade disputes. Conclusion and suggestions include there should be some openness in negotiations proceedings and there should be some judicial body for timely resolving trade disputes and there must be some provisions regarding assistance of legal competence for preserving the rights of the developing countries.
