At Friday's meeting of the World Trade Organization’s (WTO) Dispute Settlement Body (DSB), chaired by Ambassador Clare Kelly of New Zealand, members addressed multiple active disputes, procedural developments, and the persistent impasse over the Appellate Body appointments.
China requested the establishment of a dispute panel (DS627) to examine Canadian surtax measures imposed on electric vehicles, steel, aluminum, and other Chinese-origin products. Canada blocked the request, disputing the inclusion of products on which no such measures currently apply. Canada maintained that its actions are justified under the General Agreement on Tariffs and Trade (GATT) and affirmed its readiness to defend them. China retains the right to renew its request at a future DSB session.
Separately, Canada withdrew its request for a panel in DS636 concerning Chinese retaliatory duties on Canadian agricultural and fishery goods. Canada had argued for expedited proceedings under Article 4.8 of the Dispute Settlement Understanding (DSU), citing the perishable nature of the goods. China disagreed, asserting that the standard 60-day consultation period is critical. Canada stated it would pursue the panel request in a special meeting.
For the 87th time, 130 WTO members, represented by Colombia, proposed initiating the selection process to fill vacancies on the Appellate Body. The United States again rejected the proposal, citing systemic concerns about overreach in dispute rulings and calling for comprehensive reform.
Twenty-four members reiterated support for the proposal, emphasizing the urgency of restoring a functional two-tier dispute settlement system. Colombia lamented the continued paralysis, insisting that reform discussions should not preclude compliance with obligations under the DSU.
Malaysia formally joined the Multi-Party Interim Appeal Arbitration Arrangement (MPIA), following Paraguay’s recent accession. The MPIA now includes 29 members, or roughly one-third of the WTO membership. Several delegations welcomed the new participants and encouraged broader engagement.
The United States is not a participant in the MPIA. The Arrangement was established in March 2020 by the European Union and 15 other WTO members as an interim solution to provide appellate review in WTO disputes, following the paralysis of the WTO Appellate Body due to the U.S. blocking appointments to it.
• Dispute Resolution Milestone: Guatemala and Peru reported a mutually agreed solution in DS457 concerning Peruvian import duties, highlighting the WTO’s role in facilitating peaceful resolutions.
• Russia-Ukraine War: Eleven members, including Australia, the EU, Japan, and the UK, condemned Russia’s invasion of Ukraine. Russia responded that such political issues fall outside the DSB’s mandate.
• Surveillance of Implementation: The U.S., EU, and Indonesia provided updates on implementation efforts in several longstanding disputes, including cases involving anti-dumping measures, copyright, and agricultural imports.
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