US vetoes proposal to restart dispute settlement mechanism at WTO

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This proposal is moved by Guatemala on behalf of 130 members.

Appellate Body shall be established by the  Dispute Settlement Body (DSB).

The General Council convenes as the Dispute Settlement Body (DSB) to deal with disputes between WTO members. 

DSB takes decission by by consensus ( The DSB shall be deemed to have decided by consensus on a matter submitted for its consideration, if no Member, present at the meeting of the DSB when the decision is taken, formally objects to the proposed decision.). 

The DSB is made up of all member governments, usually represented by ambassadors or equivalent. It means single member can block the decision taken by all other members taken by Majority.

It is not a first instance where USA exercised its veto.

USA is citing following reasons to block proposal to restart dispute settlement mechanism at WTO.

  1. disregarding the deadline for issuing a decision; 
  2. allowing former Appellate Body members to decide cases; 
  3. reviewing dispute panels’ findings of fact; 
  4. issuing advisory opinions; 
  5. treating prior decisions as binding precedent; 
  6. declining to rule on the WTO-compatibility of measures that expire after panel establishment; 
  7. encroaching on other WTO bodies.

Reference:

  1. Indian Express

Congressional Research Service Reports:

  1. The World Trade Organization’s (WTO’s) Appellate Body: Key Disputes and Controversies
  2. World Trade Organization
  3. World Trade Organization: Overview and Future Direction

Previous Articles:

  1. Appellate Body of WTO
  2. Decision-Making in WTO
  3. Secretariat of the WTO
  4. Structure of the WTO
  5. Functions of the WTO
  6. Scope of the WTO


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