The WTO's Dispute Settlement Body establishes panels and adopts reports unless there is a consensus against it
Background
The World Trade Organization's General Council discharges its responsibilities under the Dispute Settlement Understanding through the Dispute Settlement Body (DSB). Like the General Council, the DSB is composed of representatives of all WTO Members — governmental delegates who take instructions from their capitals — so it is a political body rather than a court. The DSB administers the Understanding and oversees the whole dispute settlement process: it has the authority to establish panels, adopt panel and Appellate Body reports, maintain surveillance of implementation of rulings and recommendations, and authorize the suspension of obligations under the covered agreements. The general rule is that the DSB takes decisions by consensus, which is achieved if no WTO Member present at the meeting formally objects to the proposed decision. But at three key stages — establishing a panel, adopting panel and Appellate Body reports, and authorizing retaliation — the DSB must approve the decision unless there is a consensus against it. This procedure, commonly called negative or reverse consensus, means a losing Member cannot block a ruling on its own. The DSB usually has one regular meeting per month, and the WTO Secretariat provides its administrative support.
In plain words
DSB Dispute Settlement Body — The WTO body of all Members that establishes panels, adopts reports and authorises retaliation.
DSU Dispute Settlement Understanding — The WTO agreement setting out the rules and procedures governing the settlement of disputes.
Negative consensus Negative or reverse consensus — A rule under which a decision is taken automatically unless every Member agrees not to take it.
Appellate Body WTO Appellate Body — The standing body that hears appeals on points of law from WTO dispute panels.
Suspension of obligations Suspension of obligations — Retaliation a winning Member may be authorised to apply when the losing Member does not comply.