Syllabus: GS-III, Subject: Economy, Topic: Trade and External sector, Issue: WTO Dispute Settlement Process

Context: India advocated for the revival of the WTO’s appellate body which has remained defunct for over four years.

• The US has been blocking the appointment of its members since 2019.

WTO dispute settlement process – three main stages:

1. Consultations between the parties;
2. Adjudication by panels, and, if applicable, by the appellate body;
3. Implementation of the ruling

Adjudication process:

1. Dispute raised in Dispute Settlement Body (DSB): The General Council of WTO convenes as the DSB to deal with disputes.
2. The DSB establishes panels to adjudicate.
3. Panels submit reports to DSB which adopts them.
4. Members can appeal in the appellate body.

Appellate Body

• To review decisions made by panels in trade disputes between member countries. It can uphold, modify, or reverse findings of panels.
• Consists of 7 members.
• Became defunct due to lack of appointments

+1 Advantage for Mains:

Statement(Mains): “A credible and reliable WTO Dispute Settlement system is the bedrock of an equitable, effective, secure and predictable multilateral trading system.”

Source: Mint