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REFORMING THE APPELLATE BODY OF THE WORLD TRADE ORGANIZATION (WTO)...
28/12/2023
REFORMING THE APPELLATE BODY OF THE WORLD TRADE ORGANIZATION (WTO) IN THE CONTEXT OF ESCALATING GEOPOLITICAL TENSIONS
Published: International Conference on Digital transformation, cooperation and global integration in the new normal, hosted by Ho Chi Minh City University of Economics and Finance, Vietnam, 2023
Link: REFORMING THE APPELLATE BODY OF THE WORLD TRADE ORGANIZATION (WTO)...
Abstract
In today’s world, with escalating tensions in the trade relations among major economies worldwide, the surge in retaliatory trade measures, economic sanctions, and the rise of protectionism, the role of the WTO in resolving disagreements, conflicts, and trade disputes among its members has become increasingly crucial. However, in recent times, the dispute settlement mechanism of the WTO seems to be paralyzed due to the suspension of operation and crisis of the WTO’s Appellate Body (“WTO AB”), which is responsible for ensuring consistency and predictability in the application of WTO law, and the limitations of "negative reports" issued by the Dispute Settlement Body. The main reason for the suspension of operation of WTO AB is United States' opposition to the appointment of the AB’s members. Confronting this reality, Dr. Okonjo-Iweala, Director-General of the WTO, emphasized during the World Government Summit (WGS) 2023 on February 13 in Dubai, that one of the priorities of the WTO in the near future is to establish a fully functioning and effective two-tier dispute settlement system that all WTO members can access by 2024. Therefore, this article will: (i) clarify the role of the Appellate Body in the WTO dispute settlement system; (ii) the United States' opposition to the appointment of the AB’s members, resulting in the cessation of its operations; (iii) the shortcomings in the functioning of the AB, which is one of the reasons for the US's opposition; (iv) proposed solutions to address the current situation.
Keywords
WTO, dispute settlement mechanism, suspension of operation, crisis, appelate body, reform
Nguyen Nam Trung, LLM
Published: International Conference on Digital transformation, cooperation and global integration in the new normal, hosted by Ho Chi Minh City University of Economics and Finance, Vietnam, 2023
Link: REFORMING THE APPELLATE BODY OF THE WORLD TRADE ORGANIZATION (WTO)...
Abstract
In today’s world, with escalating tensions in the trade relations among major economies worldwide, the surge in retaliatory trade measures, economic sanctions, and the rise of protectionism, the role of the WTO in resolving disagreements, conflicts, and trade disputes among its members has become increasingly crucial. However, in recent times, the dispute settlement mechanism of the WTO seems to be paralyzed due to the suspension of operation and crisis of the WTO’s Appellate Body (“WTO AB”), which is responsible for ensuring consistency and predictability in the application of WTO law, and the limitations of "negative reports" issued by the Dispute Settlement Body. The main reason for the suspension of operation of WTO AB is United States' opposition to the appointment of the AB’s members. Confronting this reality, Dr. Okonjo-Iweala, Director-General of the WTO, emphasized during the World Government Summit (WGS) 2023 on February 13 in Dubai, that one of the priorities of the WTO in the near future is to establish a fully functioning and effective two-tier dispute settlement system that all WTO members can access by 2024. Therefore, this article will: (i) clarify the role of the Appellate Body in the WTO dispute settlement system; (ii) the United States' opposition to the appointment of the AB’s members, resulting in the cessation of its operations; (iii) the shortcomings in the functioning of the AB, which is one of the reasons for the US's opposition; (iv) proposed solutions to address the current situation.
Keywords
WTO, dispute settlement mechanism, suspension of operation, crisis, appelate body, reform
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