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The WTO and the Appellate Body: EU vs. 130 members

A total of 130 members of the World Trade Organization (WTO) called for the restoration of the Appellate Body, which the United States opposed. 

Indeed, Guatemala, on behalf of 130 members, submitted for the 69th time the panel’s proposal to initiate selection processes to fill vacancies on the Appellate Body. 

The large number of members submitting the proposal reflects a common concern about the current situation in the Appellate Body, which is seriously affecting the overall WTO dispute settlement system against the best interest of the membership, Guatemala said on behalf of the panel.

The United States reiterated that it does not support the proposed decision to begin appointing Appellate Body members, as its long-standing concerns with WTO dispute settlement remain unresolved. 

The United States said it is committed to working toward a fundamentally reformed and improved system and welcomes experimentation by members to find alternative means of resolving their disputes, such as increased adoption of panel reports, including through adoption agreements reached prior to distribution of a panel report; agreements among specific members to allow review of a report; and intensified discussions to find solutions to disputes.

Appellate Body

Twenty-four members then took the floor to comment, two of them speaking on behalf of groups of members. 

Many highlighted the commitment made by ministers at the 12th WTO Ministerial Conference to engage in discussions aimed at ensuring a fully functioning dispute settlement system by 2024 and pledged their support for achieving an outcome, citing the importance of a fully functioning system for the security and predictability of the multilateral trading system

Several referred to the informal discussions on dispute settlement reform currently underway.

Australia said it was satisfied with progress in these discussions, but that more work was needed, while the European Union said it was also satisfied with progress and hoped that members could continue constructive discussions with a view to finalizing text on dispute reform by December.

 

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