The U.S.A. Closes WTO Appeals Court: World Trade to Continue without Rules
Global commerce has lost its ultimate umpire on Tuesday and also this has left nations incapable of reaching an ultimate resolution of disputes. disagreements at the WTO (World Trade Organization). Nations are left facing ‘the law of the jungle’ as referred to by the critics. After that, the WTO would no longer be responsible for acting as the chief arbiter of all major global trade disputes.
WTO Loses Dispute Settlement
The powerful and prestigious appellate body of the World Trade Organization that was until now responsible for upholding, modifying or reversing a ruling in most of the trade disputes and disagreements- has lost two judges who have completed their respective terms on December 10. Their departure would be depriving the WTO known to be the world trade’s ‘de facto Supreme Court’ of its capability and also right to issue rulings in the event of disputes. Therefore, this has left the prestigious WTO appellate body with only one member constituting the panel.
We understand that the Trump administration has been instrumental in blocking new appointments to WTO Appeals Court with the allegation that the appellate body has overstepped and also transgressed its mandate. Moreover, the United States has further threatened to stop the WTO’s budget that could result in shutting down the entire international organization constituting 164 members by 1st January 2020.
Global Trading Facing Major Crisis
Among the pending disputes are the seven cases lodged against the U.S.A. last year. These cases involve the President of the United States, Donald Trump’s decision to levy import taxes on specifically foreign aluminium and steel as they pose a threat to the United States national security.
The Dispute Settlement Body of the World Trade Organization is known to create a distinguished panel. So, that could assist in deciding a trade conflict. But if some of the decisions are appealed, the Appellate Body would be entrusted with taking the final decision to resolve the dispute. With the dissolution of the Appellate Body, now the nations are free to use sanctions and tariffs for limiting imports, boosting protectionism thus, ending up harming and hurting trade.
Businesses Are All Set to Face the Brunt
U.S. Representative and a Democrat hailing from Florida. Stephanie Murphy has gone on record by saying “We are in a crisis moment for our global trading system. So as of tomorrow, the court will cease to exist.’’ The loss of this prestigious global trade court for final dispute appeals could prove to be “really dangerous for American businesses.”
The prestigious panel comprises seven judges. However, their power and ranks have declined thanks to the United States Presidents: First President George W. Bush, then-President Barack Obama, and finally, Donald Trump have been firm in their decision to block all new appointments as a protest to how the World Trade Organization is operating and doing business.
Decision Met With Disappointment
The closing down of the World Trade Organization’s Dispute Settlement Body was met with major disappointment by many WTO member nations. According to Peter Van den Bossche, currently teaching at the University of Bern in Switzerland, and an ex-WTO appellate judge, this shut down would be leaving companies and countries contending basically with what is referred to as “the law of the jungle … the law of the strongest … and that will hurt us all.”