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Major WTO Reforms in Jeopardy as Appeals Court Revamp Left Blank

India and China Raise Concerns

Countries including India and China have expressed their concerns over a series of proposed reforms to the World Trade Organization (WTO). The main issue highlighted by these countries is the absence of a plan to reboot the top appeals court of the organization. This information has been shared by trade sources. The clock is ticking with a major meeting approaching, and time is running out, making it crucial for a solution to be found.

System Reforms Under Review

WTO members are currently reviewing a draft proposal that is being regarded as the most serious effort so far to reform the system. The WTO’s Appellate Body has been functioning only partially since December 2019 due to the United States blocking judges to the top court. The draft proposal, which has not been made public yet, will be the third version of the proposal.

No Plan for Appeals Court Revamp

Despite the efforts to reform the WTO, the latest draft of the proposal does not include any plan on how to restore the appeals bench. This continues to be a major concern for most countries who are aiming to reach a deal at the Abu Dhabi Ministerial Conference in February 2024. Currently, countries can file complaints to a lower body, but if they do not accept its findings, the case remains unresolved with around 30 pending appeals.

Negotiations Continue

According to Marc Molina, the Deputy Permanent Representative of Guatemala to the WTO, who is coordinating the talks, negotiations are ongoing. Delegates are actively exploring potential solutions to address the issue of the appeals court, aiming to reconcile the diverse perspectives expressed by the members. The United States, which has criticized the former Appellate Body for inefficiency and judicial overreach, believes that further progress will require creativity.


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