New Delhi may not join interim arrangement to replace appellate body at WTO

  1. India is unlikely to strike bilateral deals with World Trade Organization (WTO) members such as the European Union (EU) and Canada.
  2. The deal aims to work out an interim arrangement to preserve the dispute settlement function of the multilateral body by agreeing to set up arbitration panels to resolve disputes.
  3. The Appellate body considered the supreme court of the WTO is set to become dysfunctional by 10 December,2019 as the US is not allowing appointment of judges to the panel.
  4. The US has been trying to use the opportunity of a dysfunctional Appellate Body to push through wide-ranging reform in the WTO rules including amendment of the developing country criteria, 
  5. However,India is of the view that crisis in the Appellate Body should not be used as a leverage to extract concessions in other areas of the WTO’s functioning.
  6. India has proposed that the focus should remain on solution-oriented approaches to address the concerns of the appellate body in a manner that accommodates the interests of the entire membership and preserves the essential features of the system.
  7. The Appellate Body of the WTO was established in 1995 with its seat in Geneva, Switzerland.It is a standing body of seven persons.It hears appeals from reports issued by panels in disputes brought by WTO Members.
  8. The Appellate Body can uphold,modify or reverse the legal findings and conclusions of a panel.The Appellate Body Reports once adopted by the Dispute Settlement Body (DSB) must be accepted by the parties to the dispute.