The European Union, China and 14 other World Trade Organization members have agreed on a temporary mechanism to resolve trade disputes after US action rendered the WTO incapable of acting as the arbiter of global trade. Washington froze the WTO’s Appellate Body, which acts as a supreme court for international trade, by blocking appointments for over two years. Two of the body’s remaining three members came to the end of their terms in December, leaving it unable to issue rulings.
A WTO panel of trade experts will still make initial findings. However, it is no longer possible to appeal against a ruling at the Geneva-based body. Under the temporary fix, a pool of 10 arbitrators will be set up in the next three months. Three of them will hear any given appeal.
The European Commission said the WTO members involved had agreed to preserve the WTO’s two-step dispute system until the WTO’s own Appellate Body became operational again. The EU had previously teamed up with Norway and Canada to form a separate appeals body that could resolve disputes. The other countries that signed include Australia, Brazil, Chile, China, Colombia, Costa Rica, Guatemala, Hong Kong, Mexico, New Zealand, Singapore, Switzerland and Uruguay.












