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The Crisis of the Appellate Body of the World Trade Organization: Its Origins and Consequences

Publication at Faculty of Law |
2020

Abstract

The World Trade Organisation (WTO) dispute settlement is in crisis. At the end of 2019, the Appellate Body at the WTO ceased to exist as we know it, and it will remain inoperative until the appointment of new Appellate Body, the timing of which is unclear.

The WTO will not deal with new appeals until the deadlock maintained by the US on the appointment of AB members is broken. As a result the situation is now, resembling how dispute settlement used to work during the GATT, before the establishment of the WTO.

Due to the failed attempts to reform the Appellate Body, there are several ways under consideration or implementation on how to provide a functional and predictable dispute settlement system. The Multi-party interim appeal arbitration arrangement championed by the EU seems the most promising.

However, after such praised system, any alternative dispute settlement arrangements will not hide a general trend of departure from multilateralism and rule-based approach.