THESIS TO THE TOPIC: THE CURRENT CONDITION OF THE APPELLATE BODY IN THE WTO DISPUTE SETTLEMENT SYSTEM
Keywords:
WTO, Appellate Body, Dispute Settlement Mechanism, WTO crisis, global trade, judicial overreach, WTO reforms, international trade law, multilateral trading system, trade dispute resolutionAbstract
The Appellate Body (AB) of the World Trade Organization (WTO) has been a cornerstone of the multilateral trading system, providing consistency, predictability, and fairness in dispute resolutions among member states. However, since 2019, it has faced a crisis of paralysis due to the inability of members to appoint new judges, primarily resulting from the United States blocking appointments over concerns of judicial overreach and procedural inefficiencies. This has rendered the AB non-functional, creating a legal void in the WTO Dispute Settlement Mechanism (DSM), where disputing parties can indefinitely appeal to a non-functioning body, undermining enforceability and credibility. This thesis examines the origins and implications of the AB crisis, including weakened WTO rule enforcement, inconsistent jurisprudence, and eroded trust among member states, particularly smaller economies. It further explores potential reforms to restore the AB’s functionality, such as clarifying its scope, expediting decision-making, and utilizing interim arbitration mechanisms. Addressing this crisis is critical for the preservation of a fair and stable multilateral trading system.
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