The change in Administration has not translated into a change in position when it comes to the World Trade Organization’s Appellate Body.
The United States, for the 83rd time, rejected a proposal to start the selection process for filling vacancies on the long moribund AB at yesterday’s meeting of the WTO’s Dispute Settlement Body. In response to the proposal, made by Colombia on behalf of 130 members, the United States pointed out a transition in Administrations is currently underway.
WTO members know that the United States has long-standing concerns with the dispute settlement system that have continued across Administrations. The United States first blocked the appointment of panelists to the AB during the first Administration of President Trump, effectively killing the AB. The Biden Administration continued the practice of rejecting all attempts to restore the functioning of the AB by selecting panelists.
President Trump so far has been largely silent on his views about the WTO. The long-standing US argument is that the AB routinely overstepped its jurisdiction, often issuing reports that had the effect of creating new WTO rules, rather than simply adjudicating disputes.
Washington has been at the forefront of efforts to reform the WTO dispute settlement process, although those talks have made little headway to date. During yesterday’s DSB meeting – the first of this year – some 20 members took to the floor, primarily to call for restoration of a fully functioning dispute settlement system.
Many members endorsed the General Council Chair’s proposal to initiate consultations with interested delegations to hear views on how to build on progress made in a manner that would further advance dispute settlement reform work. Several commented that they look forward to hearing how those consultations will be organized. Ten members urged others to consider joining the multi-party interim appeal arrangement that was created as an alternative appeal process in the absence of a functioning AB.
Also at yesterday’s meeting, the United States, Hong Kong and China once again argued over a panel ruling over US origin marking requirement on goods from Hong Kong that Washington says violates members’ ability to impose measures for national security reasons.
Hong Kong said that the panel ruling clearly confirms that the US action lacks legal justification. Hong Kong added that it is ready to proceed through the due process of appeal should the US lift its blockage on the appointment of AB members.
China argued the item should not have been on the DSB agenda and said members should refrain from taking unilateral and protectionism measures in the name of national security or using it as a vehicle to disregard the core principles of the WTO and interfere in other members' internal affairs.
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