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    Question

    Under the WTO, which feature most clearly distinguishes

    its Dispute Settlement Understanding (DSU) from earlier GATT practice?
    A Voluntary consultations with no binding outcomes Correct Answer Incorrect Answer
    B Automatic adoption of panel reports unless there is consensus to reject Correct Answer Incorrect Answer
    C Appellate Body opinions that members can choose to ignore Correct Answer Incorrect Answer
    D Disputes confined strictly to tariff issues on goods Correct Answer Incorrect Answer
    E Outcomes that require UN General Assembly ratification Correct Answer Incorrect Answer

    Solution

    • The WTO’s DSU ushered in quasi-automaticity: panel/appeal reports are adopted unless all members—including the winning side—agree to reject (negative consensus). • This binding and time-bound system contrasts with GATT’s weaker, more diplomatic approach where losing parties could more easily block outcomes. • Options A and C understate binding force; D is wrong because the WTO covers goods, services (GATS), and IP (TRIPS); E has no basis in the WTO process.

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