Non-adherence to the rules and regulations of international trade will give rise to the legal dispute. Unethical commercial dealings like sub-standard quality affect trade relations. Settlement of dispute must be given primacy over the delivery of judgment. According to a survey, only 136 cases out of 369 had reached to the full panel process. The settlement authority establishes a panel of experts to implement the rulings and recommendations.
The given information should be kept in mind while dealing with a dispute:-
First of all, disputed parties must talk if they can decide the matter on their own. If that fails, both countries can go for the appointment of a panel. Only parties to the dispute can file an appeal and not the third party.
However, arbitration is quicker than litigation process. Arbitration maintains privacy as disputed matter does not come before the public. To keep a distance from a dispute, constant check on terms and conditions must be given. An arbitration clause can be added the end of the agreement. The arbitration process can take place in either country of parties.it consists of both judicial and diplomatic procedures.Arbitrator’s award can be enforced in a court of law. Negotiation is back-and-forth communication between parties with an aim of solving legal matters.
The advantage of a Negotiable agreement is its enforceability. However, negotiation does not succeed every time. Litigation is filing the lawsuit, attending court proceedings and following specific rules and regulations. If parties to settle on a particular question then the judge will decide the disputed matter. The disadvantage of Litigation process is that that the losing party may have to pay the legal expenses to the other party for that other party’s advocate fees. The decision is final and binding and right of appeal always exists.
Related Topic: Pre-Shipment Inspection (PSI)