The Trans-Pacific Partnership Agreement – How Parties Will Resolve Disputes
Chapter 28 of the Trans-Pacific Partnership Agreement (TPP) establishes a State-to-State Dispute Settlement Mechanism (DSM) for settling disputes among the 12 TPP Parties. The TPP DSM may provide a faster and more transparent forum to resolve State-to-State disputes than that of the World Trade Organization (WTO). Moreover, unlike the WTO, the TPP expressly provides for monetary compensation as a remedy. On the other hand, with its well-developed procedures, professional secretariat and an appeal mechanism, the WTO may well remain a forum of choice for those that prize consistency and predictability in dispute resolution.
Comparative Overview of the Key Features of the WTO and TPP DSMs Table 1 - compares key design features of the WTO and TPP DSMs.