Modernizing the WTO’s Dispute Settlement Understanding Description video: This video explains how the WTO’s dispute settlement function operates and what proposals could be considered to modernize it. Learn more at http://www.cigionline.org/wto\n\nResolving trade disputes is one of the World Trade Organization’s […]
Modernizing the WTO’s Dispute Settlement Understanding
This video explains how the WTO’s dispute settlement function operates and what proposals could be considered to modernize it. Learn more at http://www.cigionline.org/wto\n\nResolving trade disputes is one of the World Trade Organization’s (WTO) main tasks. Since its inception in 1995, some 595 disputes have tested the WTO’s Understanding on Rules and Procedures Governing the Settlement of Disputes, also known as the DSU. For 20 years, the DSU and its Appellate Body continued to operate as they did in 1995, even though concerns were raised about the need to modernize, and reforms were proposed but never adopted.\n\nIn 2017, this negotiating paralysis led the United States to start blocking the appointments of new Appellate Body members. Members failed to reach consensus on new appointments, and as a result, there was only one member left in office by December 11, 2019. This effectively suspended the work of the Appellate Body.\n\nFor media inquiries, usage rights or other questions please contact CIGI: https://www.cigionline.org/contact/
EU, China and Others Agree to Appeal System for WTO Dispute Resolution
On Friday, 17 World Trade Organization members, including the European Union and China, agreed to create an interim mechanism to settle trade disputes after the United States paralyzed the WTO’s appellate body last month..
The European Commission said that participating WTO members agreed that this contingency move would maintain the WTO’s two-tier dispute resolution system until its own appellate body is operational again.
Washington froze the appellate body, which acts as the supreme court for international trade, blocking appointments for more than two years. Two of the three members of this body came to the end of their term in December, which prevented him from taking decisions.
Previously, the EU teamed up with Norway and Canada to form a separate appellate body that could resolve disputes.
Other countries that signed on Friday are Australia, Brazil, Chile, China, Colombia, Costa Rica, Guatemala, South Korea, Mexico, New Zealand, Panama, Singapore, Switzerland, and Uruguay.
While the United States is outside the group, US President Donald Trump, speaking Wednesday in Davos, promised «very dramatic» actions for the Geneva-based WTO. WTO CEO Roberto Azevedo to visit Washington soon.
An EU source said the bloc welcomes the fact that the Trump administration is engaging with the WTO. The organization, according to many of its members, needs to be reformed to reflect changes in the global economy, including the rise of China..