WTO Tussles Over Hard Stop Vs Phase-Out of Appeals System

[Swordsmyth]

The World Trade Organization (WTO) battled on Tuesday over whether to bring its Appellate Body to an abrupt halt or allow its adjudicators to settle a handful of pending cases, according to trade officials present at a meeting on the subject.The Trump administration has for more than two years been blocking appointments to the top body that rules on trade disputes, which means that after Dec. 10 it will have too few members to function.

The mandates of two of the three Appellate Body's members end on Dec. 10.

David Walker, New Zealand's ambassador who chairs the Dispute Settlement Body (DSB), proposed to WTO members that the Appellate Body should be allowed to conclude three cases that have already had hearings, trade officials said. A further 10 pending appeals are to be left in limbo.

However, even that limited case load drew an objection from U.S. ambassador Dennis Shea at the meeting, the officials said.

"We have heard today statements actively encouraging the Appellate Body to continue to break the rules set out in the DSU (Dispute Settlement Understanding). We strongly disagree with this approach and do not consider it to be constructive," Shea said in a speech, the text of which was seen by Reuters.

"It appears there will be no consensus between members on how to proceed on the Appellate Body by December 10," he said, voicing disappointment.

More at: https://money.usnews.com/investing/n...appeals-system

[Swordsmyth]

World Trade Organization members agreed to a preliminary 2020 budget, bowing to U.S. demands to choke off funding to the alliance’s appellate body.
The WTO’s budget committee on Thursday gave initial approval to a 197.2 million-Swiss franc ($200 million) funding package for next year and agreed to delay their consideration of the 2021 budget, according to a spokesman for the Geneva-based institution.


The deal limits annual spending for appellate body members to no more than 100,000 francs, an 87% reduction from the full allotment, and caps spending by the body’s operating fund to 100,000 francs, a 95% reduction.
The European Union, China, India and Turkey initially said they wouldn’t support the U.S. compromise, other people said. The EU, India and Turkey all have pending disputes.
The U.S., which said the appellate body has overstepped its mandate and threatens American sovereignty, has criticized the WTO’s compensation structure. The U.S. delegation said the WTO creates an incentive for appellate body members, who make more than 300,000 francs a year, to drag out cases to boost pay.
The budget dispute isn’t the only existential threat to the appeals panel.
The U.S. has also refused to consider any nominees to replace vacancies on the seven-member appellate body roster, which has been whittled down to three, the minimum required to sign off on rulings. The terms for two of those panelists end at midnight on Dec. 10, after which no new appeals can be reviewed.
While WTO members can still bring disputes to the trade body and receive an initial ruling, any party to the dispute could appeal that ruling into legal limbo -- thereby providing the losing party with a veto.

More at: https://news.yahoo.com/wto-members-a...150715698.html