The World Trade Organisation (WTO) has long been a central pillar of wealth-maximising free trade amongst its member nations. But without the WTO's ability to settle disputes between states, via the Dispute Settlement Body, the benefits of tariff reduction and the elimination of non-tariff barriers would never have been realised.
Until recently, the Appellate Body (AB) was the highest ‘court’ in the WTO’s dispute system. States which were unhappy with a legal judgement on a dispute could submit an appeal to be heard by the AB, which is composed of 7 experts in WTO law and is intended to be broadly representative of the world’s chief legal systems. It has the authority to uphold, modify, and reverse the panel’s judgement, but it is not permitted to deviate from any WTO treaties.
But, as of 2019, the AB has no longer been able to hear appeals, owing to the US Government’s vetoing of the appointment of any new judges. There are fears that the current absence of the AB could threaten the very existence of the WTO. The availability of a route of appeal is key to the legitimacy of the WTO’s dispute settlement procedure.
This new paper makes the case for the UK to join the Multi-Party Interim Appeal (MPIA) arbitration mechanism, the alternative to the AB set up by the world’s leading economies in 2020. This system, which has already issued its first brief but reasoned judgement, offers a feasible solution to the AB crisis, helping establish predictable and legally coherent outcomes which should act as a basis for a more secure global trading environment.