A Framework for a Reformed WTO Appellate Body

Abstract

STRENGTHENING THE DISPUTE SETTLEMENT MECHANISM of the World Trade Organization (WTO) by re establishing a more effective Appellate Body (AB) is a priority for many WTO member countries (including members of the G20). Although the AB was established in 1995 to hear appeals on trade disputes between member countries, it was effectively disbanded following the end of the final member’s term in 2020, and the US has blocked all new appointments since. The inability of a multilaterally accepted AB to hear appeals, however, severely undermines the goal of providing a predictable, multilateral, non-discriminatory, and transparent international trading system. Several G20 member countries have submitted proposals to restructure the AB but none have resulted in sufficient consensus for reform. This essay draws from existing proposals to outline a framework for procedural and substantive reforms to the AB, suited to changing institutional needs and allowing for regulatory flexibilities to address emerging climate and developmental concerns for the G20 to consider.

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