WTO: More DSS Bickering

India, South Africa, and Egypt criticized the ongoing informal discussions led by a facilitator concerning reforms to the World Trade Organization's (WTO) dispute settlement system. They expressed concerns about the process's integrity and transparency, leading to "information asymmetry," according to sources familiar with the talks.

During a recent Dispute Settlement Body (DSB) meeting, many developing countries supported the concerns raised by these three nations regarding the informal process. These discussions, facilitated by Guatemala's deputy-trade envoy, Marco Tulio Molina Tejeda, originated from US-initiated talks in April 2022.

The trio of countries, in their joint proposal (Job/DSB/7), emphasized the need to restore the Appellate Body's functionality, highlighting the importance of clarifications and guidance from WTO members for a more effective two-tier system. Concurrently, the United States, for the 69th time, blocked a proposal to fill vacancies in the Appellate Body, maintaining that its concerns with the WTO dispute settlement system are unresolved.

In a separate matter, Antigua and Barbuda criticized the United States for not complying with DSB recommendations in a dispute over cross-border gambling and betting services. They lamented the prolonged non-compliance and its impact on their economy.

Saint Vincent and the Grenadines, representing the Africa, Caribbean and Pacific group, expressed disappointment over the unresolved dispute, with India and Bangladesh urging a swift resolution. The United States suggested avoiding substantive discussions under other business at DSB meetings and stated it would relay Antigua's concerns to Washington.

The focus, however, remained on the joint proposal by India, South Africa, and Egypt, highlighting flaws in the informal reform process and advocating for a comprehensive, equitable dispute settlement system. They called for discussions under WTO formal bodies, led by the DSB Chair, to ensure inclusive, transparent, and consensus-based decision-making. The proposal stressed the importance of restoring the Appellate Body, addressing accessibility issues for developing countries and LDCs, and incorporating diversity in legal systems and development levels.