The provisional appeal arrangement for World Trade Organization (WTO) disputes has been in effect since Friday (31.07.2020), the European Commission announced.
According to release, Participants in the multi-party provisional appeal agreement (MPIA) notified the WTO of the ten arbitrators who will hear the appeals from the reports of the Organization's panel under the MPIA. This marks the final step in making the MPIA operational for disputes between participants. While the MPIA remains an interim solution in the absence of an operational WTO Appellate Body, it allows participants to benefit from an appeal process in the WTO dispute settlement system.
Trade Commissioner Phil Hogan, said, "With the agreed panel of arbitrators, the interim appellate arrangement for WTO disputes is now operational. I thank the arbitrators for participating in this important mechanism, and the other participants for engaging in a very constructive manner in the selection of the arbitrators. It shows that participating WTO members are willing to take concrete steps to preserve an independent dispute settlement system with an appellate function. We can now turn our attention to finding a solution to the underlying problems through reform of the WTO Appellate Body and other aspects of the WTO system that need improvement. «.
According to the MPIA, the panel of arbitrators comprises persons of recognized authority, with proven experience in law, international trade and the WTO Agreements. In a process that began in June this year, MPIA participants nominated candidates, conducted interviews and agreed on the ten individuals who will serve as arbitrators under the agreement. In any WTO dispute between the participants where one party initiates an appeal against a WTO panel report, three members of the panel are randomly selected to hear an appeal under the agreement.
The MPIA has been in force since 30 April 2020. Today, the EU and 22 other WTO members participate in this agreement with the WTO, which provides them with a functional and independent two-tier dispute settlement system for disputes between them. It will apply until the WTO Appellate Body can function again..
The EU's priority remains to resolve the current deadlock in the WTO Appellate Body as part of a broader WTO reform. This is even more important now that the public health situation has re-emphasised the need for a well-functioning, multilateral and rules-based global trading system.
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