Recently, WTO members met at Heads of Delegation level on dispute settlement reform, with an initial focus on how to resolve issues regarding appeal/review.
Need of reforms in WTO Dispute settlement
- Since August 2017, the US opposed the launch of selection processes to fill vacancies on the Appellate Body until its systemic concerns regarding WTO's dispute settlement system are addressed.
- This denies WTO members their legal right to a binding, two-stage dispute settlement process which is a fundamental pillar of WTO system.
WTO Dispute Settlement process
- Dispute Settlement Body (DSB): Settling disputes is the responsibility of DSB (General Council), which consists of all WTO members.
- It has the sole authority to establish “panels” of experts to consider the case, and to accept or reject panels’ findings or the results of an appeal.
- It monitors the implementation of rulings and recommendations, and has the power to authorize retaliation when a country does not comply with a ruling.
- Appellate Body: Either side can appeal a panel’s ruling before the Appellate Body.
- Dispute Settlement Body has to accept or reject the appeals report within 30 days — and rejection is only possible by consensus.
About WTO Appellate Body
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