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A WTO member wins a dispute, but the losing member does not bring its measure into conformity within the reasonable period. Which step is available to the winning member under the Dispute Settlement Understanding?

The winning member can seek authorisation from the Dispute Settlement Body to suspend concessions or obligations, effectively retaliating, against the non-complying member. The WTO does not levy fines, a member cannot expel another by itself, and the UN Security Council has no role in this process.

  1. AExpel the losing member from the WTO by its own decision
  2. BSeek authorisation from the Dispute Settlement Body to suspend concessions or obligations towards the losing memberCorrect
  3. CDirectly impose penalty fines collected by the WTO Secretariat
  4. DRefer the matter to the UN Security Council for sanctions

Explanation

If compliance fails, the complainant may negotiate compensation or request DSB authorisation to retaliate by suspending concessions, such as raising tariffs on the other's goods. The WTO has no power to fine or expel on one member's own decision, and the Security Council is not part of its process.

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