WTO: Interim Arrangement In The Works To Resolve Global Trade Disputes

European Union suggests multi-party interim appeal arbitration arrangement

- D Ravi Kanth

Attempts are being made to set up a “stop-gap” arrangement to resolve global trade disputes through arbitration, even as members mourned the loss of the highest adjudicating body at the World Trade Organization, said, trade envoys.

The European Union, along with several key members, has intensified its efforts to finalize a “multi-party interim appeal arbitration arrangement” in the absence of the Appellate Body at the WTO.

The WTO’s Appellate Body has become dysfunctional from December 11 with the US blocking the filling of six vacancies at the disputes settlement body. Consequently, the Appellate Body will not be able to take up new appeals, thereby, undermining “the members’ right, under the WTO agreements, to a binding adjudication of disputes and their right[s] to appeal review,” it is argued.

Two initiatives

Nevertheless, two contrasting initiatives are being pursued by the European Union on the one hand, and Australia on the other to erect an interim arbitration mechanism.