The World Trade Organization (WTO) has entered its most critical period since its creation twenty-four years ago, due to the paralysis on Tuesday (10.12.2019) of its Appellate Body, the final instance in the system of dispute resolution between member countries.
The United States' persistent refusal to appoint the new judges required for this body to continue functioning This is the reason that has led the organization to this extreme situation, the seriousness of which its general director, the Brazilian Roberto Azevedo, has tried to downplay.
The Appellate Body, usually composed of seven judges, currently has only three. (the minimum established for its decisions to take effect), as a consequence of the United States' blockade since 2016 on the appointment of new judges. Two of these three judges, Indian Ujal Singh Bhatia and American Thomas Graham, are ending their eight-year mandate on that body (the maximum period) today, leaving Chinese judge Hong Zhao alone..
Azevedo explained that, faced with this situation, countries could opt for "temporary measures" or "alternative mechanisms", but always within the context of the dispute settlement system, which is seen as the only one that can offer equitable treatment to a small country in litigation against a commercial power.
The Appellate Body is the final instance of the WTO's trade dispute settlement mechanism.Disputes are first considered by panels of experts from the organization, whose decisions can be challenged and taken to the Appellate Body, which can amend or confirm them, in whole or in part. Their decisions are binding, i.e. mandatory, on the parties to the dispute.
The Japanese government today stressed the "urgent" need to reform the Appellate Body of the World Trade Organization (WTO), after the body was paralyzed by the US blockade.
Source: Reuters
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