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Abstract

The World Trade Organization (WTO) operates as a central institution for resolving international trade disputes within a fragmented global economy characterized by economic anarchy. Its Dispute Settlement Mechanism (DSM) offers a rules-based structure aimed at promoting fairness, predictability, and stability in global trade. However, developing and least-developed countries (LDCs) often face considerable barriers when engaging with the DSM due to limited financial resources, inadequate legal expertise, and institutional constraints. These disadvantages affect their ability to participate effectively in consultations, panel proceedings, and implementation phases. Through a comparative case study of the WTO disputes concerning the European Communities’ sardine labeling standards and banana import regime, this research analyzes the structural and strategic limitations faced by developing countries in trade litigation. Particular attention is given to Peru’s role in the sardine dispute, where insufficient legal capacity hindered the development of coherent argumentation, interpretation of WTO rules, and articulation of trade interests. The study highlights the challenges of navigating the dispute process without strong third-party support or coordinated strategy, and concludes by offering policy recommendations that concentrate on strengthening legal capacity through initiatives of the China Programme. Expanding access to targeted legal training and increasing multilateral support are essential steps toward improving inclusive participation in the global trade system.

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