Abstract: The dispute settlement system has become increasingly important in the general agreement of taxes and trade. The need and the opportunity for fundamental reformation of the international system of trade are apparent. It is also clear that in this process an evaluation taking into account all countries of the world must play a crucial role in such reformation. Just as there can not be genuine development in all countries of the world without a just environment for them to grow, so there can not be a truly stable system of global relations without broad international development. Accordingly, the salient features of the international system we envisage are 2 folds: It should provide the framework for rational, coherent and democratic management of international economic and political relations that can ensure peace, stability, prosperity and human dignity within the global community as a whole. Its central objective should the support of the efforts of less developed countries to resume growth and to undertake a process of sustainable and self reliant development. To achieve these objectives, what is required is a fundamental reform of the international financial monetary trading systems, including the establishment of contingency mechanisms for resource flows to ensure the orderly development despite unforeseen problems. The international system of dispute settlement needs an overhaul of its mechanism to allow compromise according to the provisions and circumstances. It should be stated in a special agreement including general rules and principles regulating the relationship between the disputed members. The obedience to which it is enforced by the suggested committee of jurists and each party has the right to appeal its decisions, if necessary. In order that this above stated statements may materialize, however, there must be an explicit recognition of the establishment of a dispute settlement body and different elements of its structure. Other trends in the international sense shall be discussed in part 2. The dispute settlement its general rules and principles and main procedures that are necessary for its application.