WTO’s APPELLATE BODY

May 20, 2019

Over 20 developing countries met in New Delhi recently to discuss ways to prevent the World Trade Organization’s (WTO’s) dispute resolution system from collapsing due to the logjam in appointments.

About:

Composition: WTO’s Appellate Body is a standing committee of seven members that presides over appeals against judgments passed in trade-related disputes brought by WTO members.
Established in: 1995.
Functioning:
- Countries involved in a dispute over measures purported to break a WTO agreement or obligation can approach the Appellate Body if they feel the report of the panel set up to examine the issue needs to be reviewed on points of law.
- The Appellate Body can uphold, modify, or reverse the legal findings of the panel that heard the dispute. Countries on either or both sides of the dispute can appeal.
- The Appellate Body has so far issued 152 reports. The reports, once adopted by the WTO’s disputes settlement body, are final and binding on the parties.
Significance: The WTO’s dispute settlement procedure is seen as being vital to ensuring smooth international trade flows.
Indian scenario: India has so far been a direct participant in 54 disputes, and has been involved in 158 as a third party.