WTO Dispute Resolution Drags On

In a concentrated effort to overhaul dispute resolution proceedings within the World Trade Organization (WTO), Marco Molina, Deputy Permanent Representative of Guatemala to the WTO, updated  WTO members on the progress made in resolving dispute settlement reform,

This is part of an initiative in response to the June 2022 ministerial mandate, aiming to have a fully functioning dispute settlement system by 2024.

Since his previous report to the Dispute Settlement Body (DSB) on March 31, Molina and the delegates have convened 57 meetings over April and May. 

The efforts, Molina said, are starting to bear fruit. Initially, members proposed 70 potential solutions, which were placed in a "red table." Those proposals have been refined, moved to a "yellow table," and narrowed down to more viable alternatives.

Molina also expressed satisfaction with the change in mindset among members, who no longer see the proposed solutions as fixed positions or redlines. Instead, there's a concerted effort to understand the rationale behind each proposal, with a view to reconciling any conflicting perspectives.

On the next steps, Molina said that members are making progress and identifying practical solutions for the forthcoming "green tables," which will be the basis for a drafting exercise after the WTO's summer break. 

Several members expressed concerns about the meeting's format and frequency, pointing out the difficulties that smaller, developing nations face in participating effectively. There were calls for increased transparency and inclusivity, with a few members suggesting virtual participation as an option.

Another group of members, including Canada, the United States, and the European Union, among others, welcomed the active participation and transparency of the process.

Despite the ambitious timeline, they underlined the urgency of the task at hand and the necessity of meeting the 2024 deadline for a functioning dispute settlement system.

China emphasized the urgency of the task, highlighting the importance of dispute settlement reform to members and its potential impact on the success of MC13, the 13th Ministerial Conference set for February 2024.

The United States restated its opposition to the proposal to start selecting Appellate Body members. Guatemala, representing 129 members, introduced the proposal for the 66th time, underscoring members' concerns about the current situation in the Appellate Body, which they argue is negatively affecting the WTO's dispute settlement system.

Despite these concerns, a number of delegations reaffirmed the importance of the WTO's two-tiered dispute settlement system and stressed the need to break the deadlock in this area. They highlighted the commitment made by ministers at the WTO's 12th Ministerial Conference to engage in discussions to secure a fully functioning dispute settlement system by 2024 and pledged their support for achieving this outcome within the prescribed deadline.