The recently concluded G-20 Declaration, among its many commitments, reiterated the need to pursue reform of the World Trade Organization (WTO) to improve all its functions and conduct proactive discussions “to ensure a fully and well-functioning dispute settlement system accessible to all members by 2024”.
The WTO’s dispute settlement system, conceived as a two-tier panel cum appellate body structure, has been dysfunctional since 2019, because the United States has blocked the appointment of appellate body members. Hailed as the crown jewel of the WTO, the dispute settlement system, with the scope for appellate review and mechanisms to enforce rulings, has issued over 493 rulings since its establishment in 1995. To put this in context, the International Court of Justice has dealt with only around 190 cases since 1947. The appellate body has been crucial in ensuring coherence and predictability in rulings, ensuring confidence in the WTO dispute settlement process.
While the commitment expressed in the G-20 Declaration is heartening, whether it will have an appellate process or just be a one-stage panel process, given Washington’s continued opposition to an appellate review process, remains to be seen. The U.S. seems inclined towards the dejudicialisation of international trade law — an approach whereby countries take back control from international courts and tribunals. However, as with adjudication in national courts, the appellate review process at the international level serves as an essential check on the interpretation and application of law and ensures consistency.
