Pressure grows on the US to reform the dispute settlement system at the WTO


The United States faced increased pressure on Wednesday from 123 members of the World Trade Organization (WTO) to reform the dispute settlement system.

In general, at a meeting of the Dispute Settlement Body on April 27, members expressed their commitment to engage in discussions on the reform of the WTO dispute settlement system.

On one side, Mexico, speaking on behalf of 123 members, presented for the 53rd time the proposal of the group to initiate the selection processes to fill vacancies in the Appellate Body.

The large number of members that submitted the proposal reflects a common concern about the current situation in the Appellate Body, which is seriously affecting the general dispute settlement system of the WTO against the best interest of the members, said Mexico on behalf of of the group.

On the other hand, the United States argued that its long-standing concerns regarding WTO dispute settlement remain unaddressed and that it does not support the proposed decision to begin appointment of Appellate Body members.

Many members share the United States’ concerns about the functioning of the system and its negative impact on the negotiating and monitoring functions of the WTO, he added.

The United States indicated that it wants to make it clear that it supports WTO dispute settlement reform and that it stands ready for continued and deeper engagement with members on the basis that such discussions should aim to ensure that dispute settlement WTO disputes reflect the real interests of members and do not prejudge what a reformed system would look like.

More than 20 delegations (including the European Union for its 27 members, Nigeria for the African Group, and Saint Vincent and the Grenadines for the Organization of Eastern Caribbean States) took the floor to reiterate the importance of the two-tier dispute settlement system of the WTO for the stability and predictability of the multilateral trading system.

They called on all members to engage in constructive discussions to restore a fully functioning dispute resolution system, which some cited as a top priority for organizational reform.

For the 123 members, Mexico reiterated that the fact that a member may have concerns about certain aspects of the Appellate Body’s operation cannot serve as a pretext to undermine and interrupt the work of the Dispute Settlement Body (DSB) and the dispute settlement in general, and that there was no legal justification for the current blockage of the selection processes, which is causing the specific nullity and impairment of the rights of many members.

The chairperson of the DSB, the Ambassador Athaliah Lesiba Molokomme of Botswanasaid he hoped that members could find a solution to this matter.

roberto.morales@eleconomista.mx



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