Recent Dispute Settlement Dynamics at the WTO and the Attraction of RTAs

The multilateral trading system under the World Trade Organization (WTO) is experiencing unprecedented stress. The paralysis of the Appellate Body and the rise of unilateral tariff wars have weakened the predictability and authority of multilateral trade governance. In response, states are increasingly turning to regional trade agreements (RTAs) as functional substitutes, relying on their dispute settlement provisions to fill the enforcement gap left at the WTO. This article examines how the WTO’s crisis has shaped the design and use of RTA dispute settlement systems. It shows how recent RTAs have adopted features such as exclusive forum clauses and broader regulatory coverage, including environmental, labour and digital economy considerations. Drawing on a comparative analysis of RTAs, the article argues that while regionalisation risks further fragmentation, it can also generate models and momentum for WTO reform. JEL Codes: F13, F15, K33, F02, F53