NEW DELHI – India has called for a comprehensive reform of the dispute settlement system at the World Trade Organization (WTO), seeking a package solution rather than a piecemeal approach. The WTO’s dispute settlement body has been rendered ineffective as the United States, under multiple presidents, has blocked appointments to the appellate body. This has prompted India to join forces with several other countries to submit a proposal for reform.
The proposal, submitted by India, Indonesia, South Africa, Bangladesh, Egypt, and Bangladesh, highlights concerns that the central issues regarding the revival of the appellate body have not been adequately addressed in previous discussions. These countries argue that the current approach undermines the fundamental nature of the rules-based, two-tier system with a standing appeal mechanism.
One of the proposed changes pertains to the composition of the dispute settlement panel. India and the other countries argue that altering its composition could potentially disadvantage developing and least developed nations. There are also reservations about the panel’s new powers to categorize cases into standard, complex, and extraordinarily complex, as well as expedited timeframes, which may hinder the possibility of reaching mutually agreeable solutions.
Another concern is related to the potential domination of certain geographical regions and legal systems within the reworked dispute settlement panels. These changes could impact the overall fairness and balance of the system.
The looming meeting of WTO trade ministers, scheduled for two weeks from now in Abu Dhabi, is expected to address these issues and work toward a solution. However, India and other countries find the proposals currently on the table to be inequitable, prompting them to collaborate on an alternative approach.
The dispute settlement system within the WTO is crucial as it allows member nations to challenge rules that are perceived to be against global norms. Restoring the functionality of the appellate body is seen as essential by almost all countries, except for the United States, which has consistently obstructed efforts to revive the system.
India’s stand for comprehensive reform reflects a growing urgency within the international community to address the challenges facing the WTO dispute settlement system. The proposal submitted by India and its allies seeks to ensure that the interests of developing and least developed nations are duly considered.
As the WTO trade ministers prepare to convene in Abu Dhabi, the hope is that a consensus can be reached on comprehensive reforms that will restore the effectiveness and integrity of the dispute settlement system. The outcome of these discussions will have significant implications for the future of global trade and the resolution of trade disputes based on a rules-based framework.
It remains to be seen whether the proposed package approach will gain traction among member nations and provide a viable path forward for reforming the WTO’s dispute settlement system. As the deadline for the ministerial meeting approaches, all eyes will be on the discussions in Abu Dhabi to determine the fate of this critical component of the global trade architecture.
