Transparency is one of the most contested aspects of international organizations. While observers frequently call for greater oversight of policy making, evidence suggests that settlement between states is more likely when negotiations are conducted behind closed doors. The World Trade Organization's (WTO) legal body provides a useful illustration of these competing perspectives. As in many courts, WTO dispute settlement is designed explicitly to facilitate settlement through private consultations. However, this study argues that the privacy of negotiations creates opportunities for states to strike deals that disadvantage others. Looking at product-level trade flows from all disputes between 1995 and 2011, it finds that private (early) settlements lead to discriminatory trade outcomes -complainant countries gain disproportionately more than the rest of the membership. When the facts of a case are made known through a ruling, these disproportional gains disappear entirely. The article also finds that third-party participation -commonly criticized for making settlement less likely -significantly reduces disparities in post-dispute trade. It then draws parallels to domestic law and concludes with a set of policy prescriptions.How much transparency should there be in global governance? While public opinion is quick to call for greater openness in international institutions, political scientists remain ambivalent. Recent findings show that when bargaining is conducted in public view, negotiators are vulnerable to influence by powerful domestic interests. These domestic pressures create incentives to adopt more aggressive stances, which significantly reduce the prospects for compromise between parties. 1 As a result, bargaining may be more productive behind closed doors, shielded from the view of hardline interests. The supposed relationship between privacy and effectiveness explains why countries frequently conduct diplomacy and international bargaining in private. 2 The benefits of low transparency are evident in various international institutional settings. For example, privacy allows governments to shift blame to international institutions like the European Union (EU) and the International Monetary Fund (IMF), reducing the political fallout over painful economic reforms, and making these reforms more likely. 3 For example, greater transparency in international financial institutions reduces the effect of such interventions. In addition, despite considerable pressure for change, there is evidence that investment disputesincluding those that proceed under the World Bank's International Centre for the Settlement of