WTO dispute settlement body revival faces delays over country differences: GTRI
- According to the Global Trade Research Initiative (GTRI) report, the reinstatement of a fully functional WTO dispute settlement body is facing delays.
- This is due to significant differences between developed and developing countries.
Protectionism and US Involvement
- The absence of a functional dispute settlement body has led to an increase in protectionism.
- Since 2017, the US has been obstructing the appointment of new judges to the WTO's appellate court, claiming that it is detrimental to its interests.
- Over a quarter of all disputes involve challenges to US laws or measures.
India's Priority at MC13
- The GTRI, emphasizes that reforming the dispute settlement system is a crucial priority for India at the 13th ministerial conference (MC13).
- Without a reliable method for resolving conflicts, WTO rules remain ineffective.
WTO Dispute Settlement
- A dispute arises when a member government believes another member government is violating an agreement that it has made in the WTO.
- There are two main ways to settle a dispute once a complaint has been filed in the WTO
- The parties find a mutually agreed solution, particularly during the phase of bilateral consultations.
- Through adjudication which are binding upon the parties once adopted by the Dispute Settlement Body.
- There are three main stages to the WTO dispute settlement process
- Consultations between the parties.
- Adjudication by panels and, if applicable, by the Appellate Body.
- Implementation of the ruling
- It includes the possibility of countermeasures in the event of failure by the losing party to implement the ruling.
WTO’s Appellate Body
- The Appellate Body, set up in 1995, is a standing committee of seven members.
- It presides over appeals against judgments passed in trade-related disputes brought by WTO members.
- Countries can approach the Appellate Body if they feel the report of the panel set up to examine the issue needs to be reviewed on points of law.
- However, existing evidence is not re-examined but legal interpretations are reviewed.
- The Appellate Body can uphold, modify, or reverse the legal findings of the panel that heard the dispute.
- The appellate body at the WTO stopped functioning from December 2019, but the panels are still working.
Prelims Takeaway
- World Trade Organisation
- WTO Dispute Settlement