In international trade, common methods for resolving trade disputes include:
Negotiation and consultation: Both parties resolve disputes through direct negotiation and consultation, seeking a win-win solution. This is the most common solution, which can reduce costs and maintain a stable relationship between the two sides.
2. Dispute settlement institutions: For instance, the dispute settlement mechanism of the World Trade Organization (WTO) can provide an independent and impartial arbitration institution to resolve disputes.
3. Arbitration: Both parties may agree to have a third-party arbitration institution conduct the arbitration. The award has legal effect and can reduce long-term disputes.
4. Litigation: In some cases, both parties may choose to resolve disputes through court litigation, which usually requires both parties to engage in legal proceedings in the relevant countries.
5. Mediation: Both parties can seek the assistance of an independent mediation institution to resolve disputes. Mediation is usually more flexible than arbitration and litigation and can find solutions more quickly.
