Is the WTO Appellate Body in Limbo? The Roots of the Crisis in the WTO Dispute Settlement Body and the Available Routes Navigating the Quagmire
DOI:
https://doi.org/10.17159/1727-3781/2021/v24i0a8580Keywords:
WTO, GATT, Dispute Settlement Body, Appellate Body, Appellate Body paralysis, dispute settlement mechanism, positive consensus, reverse consensusAbstract
In its over 25 years' history, the dispute settlement mechanism of the World Trade Organisation (WTO) has been touted as one of the most active and successful international adjudicatory systems in relation to other international dispute settlement fora. The process in the engagement of the system presents a tripartite structure consisting of consultation, panel and appellate stages, and the enforcement proceedings. The functions of these processes help to promote the trust and confidence of the member states in the WTO trade dispute settlement system. Now the Appellate Body (AB) is paralysed following the incapacitation and consequential suspension of the appellate function of the WTO Dispute Settlement Body (DSB), because of the insufficient membership caused by the United States blockade on the appointment process of AB members. The paper discusses the trajectory of the WTO dispute settlement reform from the GATT regime, the root cause of the suspension of the Appellate Body, and the options available for the disputants in and outside the WTO system. It concludes that the system possesses policy defects if the attitude of a single state can render the AB non-functional and should be transformed when the appellate system is resuscitated.
Downloads
References
Bagwell K, Bown CP and Staiger RW "Is the WTO Passé?" 2016 Journal of Economic Literature 1125-1231
Barton JH, Goldstein JL, Josling TE and Steinberg RH The Evolution of the Trade Regime: Politics, Law, and Economics of the GATT and the WTO (Princeton University Press New Jersey 2010)
Croome J Reshaping the World Trading System: A History of the Uruguay Round (DIANE Publishing Company USA 1996)
Danvivathana P "Is it Beneficial to WTO Members to Reform the Panel System?" in Georgiev D and van der Borght K (eds) Reform and Development of the WTO Dispute Settlement System (Cameron May Cambridge 2006)
Elsig M, Hoekman B and Pauwelyn J "Thinking about the Performance of the WTO: A Discussion Across Disciplines" in Elsig M, Hoekman B and Pauwelyn J (eds) Assessing the World Trade Organization (Cambridge University Press Cambridge 2017) 12-42
Elson A The United States in the World Economy: Making Sense of Globalization (Springer International Publishing 2019)
Feeney SP "The Dispute Settlement Understanding of the WTO Agreement: An Inadequate Mechanism for the Resolution of International Trade Disputes" 2002 Pepperdine Dispute Resolution Law Journal 99-116
Hasan MM "Special and differential treatment in the WTO: Its content and competence for facilitation of development" 2016 Nnamdi Azikiwe University Journal of International Law and Jurisprudence 41-54
Irwin DA, Mavroidis PC and Sykes AO The Genesis of the GATT (Cambridge University Press UK 2009)
Jackson JH The World Trading System: Law and Policy of International Economic Relations (MIT Press 1997)
Joergens KJ "True Appellate Procedure or Only a Two-Stage Process-A Comparative View of the Appellate Body under the WTO Dispute Settlement Understanding" 1998 Law and Policy in International Business 193-230
Kalderimis D "Exploring the Differences between WTO and Investment Treaty Dispute Resolution" in Frankel S and Lewis M (eds) Trade Agreements at the Crossroads (Routledge London 2014) 46-65
Koul AK Guide to the WTO and GATT: Economics, Law and Politics (Springer New Delhi 2018)
Lighthizer RE Report on the Appellate Body of the World Trade Organisation (Office of the United States Trade Representative Ambassador 2020)
Marceau G The History of Law and Lawyers in the GATT/WTO: The Development of the Rule of Law in the Multilateral Trading System (Cambridge University Press Cambridge 2015)
McDougall R "Crisis in the WTO: Restoring the WTO Dispute Settlement Function" 2018 Center for International Governance Innovation CIGI Papers No 194/2018 1-18
Morgan D "Dispute Settlement under PTAs: Political or Legal?" in Buckley R, lo Lo V and Boulle L (eds) Challenges to Multilateral Trade: The Impact of Bilateral, Preferential and Regional AgreementsThe Netherlands 2008) 241-259
O'Rourke KH The International Trading System, Globalization, and History (Edward Elgar UK 2005)
Palmeter D and Mavroidis PC Dispute Settlement in the World Trade Organization: Practice and Procedure (Cambridge University Press Cambridge 2004)
Pauwelyn J "WTO Dispute Settlement Post 2019: What to Expect?" 2019 Journal of International Economic Law 297-321
Pauwelyn J "WTO Dispute Settlement Post 2019: What to Expect? What Choice to Make?" 2019 Graduate Institute and Georgetown Law 1-23
Pereira C "Speaking Up in the WTO: Brazil's Voice in the Dispute Settlement Body" in do Amaral Júnior A, Sá Pires LMd-O and Carneiro CL (eds) The WTO Dispute Settlement Mechanism: A Developing Country Perspective (Springer Switzerland 2019) 25-42
Popa LE Patterns of Treaty Interpretation as Anti-Fragmentation Tools: A Comparative Analysis with a Special Focus on the ECtHR, WTO and ICJ (Springer International Publishing Switzerland 2017)
Reich A "The effectiveness of the WTO Dispute Settlement System: A statistical Analysis" 2017 European University Institute Law2017/11 1-32
Steger D "The Appellate Body and its Contribution to WTO Dispute Settlement" in Kennedy DLM and Southwick JD (eds) The Political Economy of International Trade Law: Essays in Honor of Robert E Hudec (Cambridge University Press Cambridge 2002)
Steger D "Strengthening the WTO Dispute Settlement System: Establishment of A Dispute Tribunal" in Meléndez-Ortiz R, Bellmann C and Mendoza MR (eds) The Future and the WTO: Confronting the Challenges - A Collection of Short Essays - ICTSD Programme on Global Economic Policy and Institutions (International Centre for Trade and Sustainable Development 2012) 112-118
Steger DP "WTO dispute settlement: revitalization of multilateralism after the Uruguay Round" 1996 Leiden Journal of International Law 319-236
Stewart TP and Slane D Evaluating China's Past and Future Role in the World Trade Organization (WTO): Congressional Hearing before the U.S.-China Economic and Security Review Commission (DIANE Publishing Company Washington DC 2011)
Terrence SP The Broken Multilateral Trade Dispute System (Asia Society Policy Institute New York 2018)
Trachtman J "Jurisdiction in the WTO Dispute Settlement" in Yerxa R and Wilson B (eds) Key Issues in WTO Dispute Settlement: The First Ten Years (Cambridge University Press Cambridge 2005) 131-143
Van den Bossche P "From Afterthought to Centrepiece: The WTO Appellate Body and Its Rise to Prominence in the World Trading System" 2005 Maastricht Faculty of Law Working Paper 2005/1 1-38
Van den Bossche P "The Making of the 'World Trade Court': The Origins and Development of the Appellate Body of the World Trade Organisation" in Yerxa R and Wilson B (eds) Key Issues in the WTO Dispute Settlement: The First Ten Years (Cambridge University Press Cambridge 2005) 63-79
Van den Bossche P and Zdouc W The Law and Policy of the World Trade Organization: Text, Cases and Materials (Cambridge University Press Cambridge 2017)
Van Grasstek C The History and Future of the World Trade Organization (World Trade Organization Geneva 2013)
von Daniels L, Dröge S and Bög A "Ways Out of the WTO’s December Crisis" 2019 German Institute for International and Security Affairs 1-8
Watson JKR The WTO and the Environment: Development of Competence Beyond Trade (Routledge London 2013)
World Trade Organization A Handbook on the WTO Dispute Settlement System (Cambridge University Press Cambridge 2017)
Yanovich A and Zdouc W "Procedural and Evidentiary Issues" in Bethlehem DL et al (eds) The Oxford Handbook of International Trade Law (Oxford University Press Oxford 2009) 344-377
Zeiler TW Free Trade, Free World: The Advent of GATT (University of North Carolina Press USA 1999)
Zimmermann CD "IMF-WTO Interaction: Institutional, Jurisprudential and Procedural Aspects" in Fauchald OK and Nollkaemper A (eds) The Practice of International and National Courts and the (De-)Fragmentation of International Law (Bloomsbury Publishing Oxford 2014) 57-86
Zimmermann TA Negotiating the Review of the WTO Dispute Settlement Understanding (Cameron May United Kingdom 2006)
Internet sources
Dunkel A, Sutherland P and Ruggiero R 2001 Joint Statement on the Multilateral Trading System https://www.wto.org/english/news_e/news01_e/jointstatdavos_jan01_e.htm accessed 1 May 2020
European Commission 2020 EU and 16 WTO Members Agree to Work Together on an Interim Appeal Arbitration Arrangement https://trade.ec.europa.eu/doclib/press/index.cfm?id=2106 accessed 20 June 2020
European Commission 2020 EU Puts forward its Candidate for the Pool of Arbitrators I the Multi-Party Interim Appeal Arbitration Arrangement and Encourages More WTO Members to Join https://trade.ec.europa.eu/doclib/press/index.cfm?id=2145 accessed 21 June 2020
European Commission 2020 Interim Appeal Arrangement for WTO Disputes Becomes Effective https://trade.ec.europa.eu/doclib/press/index.cfm?id=2143 accessed 20 June 2020.
Georgetown Law date unknown From GATT to WTO: A Brief Overview https://guides.ll.georgetown.edu/c.php?g=363556&p=4108235 accessed 14 April 2020.
González A and Jung E 2020 Developing Countries Can Help Restore the WTO’s Dispute Settlement System https://voxeu.org/content/developing-countries-can-help-restore-wto-s-dispute-settlement-system accessed 23 April 2020
Hillman JA 2020 A Reset of the WTO Trade Organisation’s Appellate Body https://www.cfr.org/report/reset-world-trade-organizations-appellate-body accessed 22 June 2020.
McBride J and Chatzky A 2020 How Are Trade Disputes Resolved? https://www.cfr.org/backgrounder/how-are-trade-disputes-resolved accessed 23 June 2020.
World Trade Organisation 2019 Farewell speech of Appellate Body member Peter Van den Bossche https://www.wto.org/english/tratop_e/dispu_e/farwellspeech_peter_van_den_bossche_e.htm accessed 6 June 2020
Reily H 2018 By the Numbers: Here’s How ‘Badly’ the WTO Treats the U.S. https://www.axios.com/by-the-numbers--wtos-treated-the-united-states-very-badly-1530622593-14ba45da-e0da-462f-974e-f8792a086177.html accessed 23 June 2020
Stuart A 2020 New Proposal Seeks to Save World Trade Organisation https://www.google.com/smp/s/www.forbes.com/sites/stuartanderson/2019/12/09/new-proposal-seeks-to-save-world-trade-organization/amp/ accessed 23 June 2020.
World Trade Organisation 2019 Dispute Settlement: Appellate Body Members https://www.wto.org/english/tratop_e/dispu_e/ab_members_descrp_e.htm accessed 22 June 2020
World Trade Organisation date Unknown Chronological List of Disputes Cases https://www.wto.org/english/tratop_e/dispu_e/dispu_status_e.htm accessed 14 June 2020
World Trade Organisation date unknown Dispute Settlement Reports within the Framework of the GATT 1947 https://www.wto.org/english/tratop_e/dispu_e/gt47ds_e.htm accessed 18 April 2020.
World Trade Organisation date unknown Dispute Settlement Statistics https://www.wto.org/english/tratop_e/dispu_e/stats_e.htm#fntexta accessed 25 April 2020
World Trade Organisation date unknown United States of America and the WTO https://www.wto.org/english/thewto_e/countries_e/usa_e.htm accessed 2 June 2020.
World Trade Organisation date unknown Understanding the WTO: The Agreements https://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm1_e.htm accessed 20 April 2020
Published
Issue
Section
License
Copyright (c) 2021 Nnamdi Stanislaus Umenze
This work is licensed under a Creative Commons Attribution 4.0 International License.