A Holistic Approach for WTO Dispute Settlement Mechanism Reforms: US Demands and the Restoration of the Appellate Body

Abstract

Against the backdrop of the crisis in the WTO Appellate Body and the diminishing relevance of the multilateral trading system itself, initiating negotiations to restore the Appellate Body should still be a priority for WTO reform. For years, the US has been consistently criticizing the Appellate Body and attempting to introduce new rules targeting non-market-oriented policies and practices by obstructing the restoration the Appellate Body. The Biden administration has recently convened discussions with a few WTO Members on reforming the dispute settlement mechanism, indicating a certain flexibility in delinking the reform of the Appellate Body with the incorporation of rules targeting non-market-oriented policies and practices. WTO Members should seize this opportunity to understand and sort out the US demands regarding the Appellate Body, consider their acceptability on a case-by-case basis, and thereby promote negotiations for the reform of the Appellate Body.

Keywords: World Trade Organization (WTO), Dispute Settlement Mechanism, Appellate Body, US Demands, reform