The European Union and Norway agreed on Monday (21.10.2019) on a temporary system of arbitration and dispute resolution at the World Trade Organization that will replace, in cases involving both countries, the organization's Appellate Body if it is blocked by the US veto of new judges.
In a statement, the European Commission said its priority remains to ensure the functioning of the Appellate Body, the final instance for trade disputes between WTO members, which would see its powers paralyzed in December if the US continues to veto the appointment of new members.
"However, this temporary system has become necessary as a contingency measure given the prolonged deadlock in the appointments of Appellate Body members.", the EC said in a statement.
To overcome this blockage, the EU and Norway have agreed on a "binding and effective" solution that "is equivalent to the existing appeal process at the WTO", and have already informed the WTO of this alternative system.
The EU already agreed a similar solution with Canada in July this year..
The Appellate Body is usually made up of seven judges, but the United States vetoes the appointment of new members and the body is currently limited to three, the minimum required for it to continue functioning.
On December 10, the eight-year terms of two of the remaining judges expire, leaving the body with only one member, Chinese Hong Zhao, and its powers would be paralyzed.
The EU and Norway have agreed on a system for appealing potential trade disputes between them under WTO law.
It stands ready to be used in case the @wto Appellate Body is paralyzed by the blockage in appointing new members.
More here → https://t.co/83GGfRWIoV pic.twitter.com/DgMIQ1On2Y
—European Commission ?? (@EU_Commission) October 21, 2019
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