Informal discussions aimed at reforming the WTO's dispute settlement rules are approaching a conclusion, with members being informed that the "finish line is within reach." These talks were the focus of the WTO's Dispute Settlement Body (DSB) meeting held on December 18th.
Marco Molina, Deputy Permanent Representative of Guatemala to the WTO, reported on the progress made in these informal meetings, which were initiated to fulfill the ministerial mandate from June 2022 to establish a well-functioning dispute settlement system accessible to all members by 2024.
Molina emphasized that despite being informal, these discussions were of great importance and followed a solution-oriented, multilateral, open, transparent, inclusive, and bottom-up approach. Over the past 20 months, members have worked to identify interests, concerns, and solutions that reflect the diverse views of WTO members, particularly focusing on the past 10 months to identify optimal solutions to the issues raised.
Significant progress has been made, and a consolidated draft text, now in its third revision, is nearing finalization. The third revised draft text focuses on providing incentives and disincentives to influence the behavior of participants in the dispute settlement system, making it more efficient.
While some issues still require further discussion, members are now identifying potential solutions that accommodate diverse perspectives. In the coming weeks, efforts will focus on reviewing and refining the third version of the consolidated text.
Despite the progress, several members expressed concerns about critical issues, particularly regarding the future of the WTO's Appellate Body. Different views were shared on whether discussions should continue informally or be formalized by including them on the work agenda of the Dispute Settlement Body and/or General Council.
The meeting also addressed several specific dispute matters, including anti-dumping duties on frozen fries from Belgium, Germany, and the Netherlands; the cross-border supply of gambling and betting services; tariff treatment on certain goods in the information and communications technology sector; and origin marking requirements.
Appellate Body appointments remained a topic of discussion, with Guatemala representing 130 members and proposing to start the selection processes for filling Appellate Body vacancies. The United States reiterated its concerns and did not support the proposed decision, emphasizing the need for fundamental reform.
Many members reaffirmed their commitment to a fully functioning dispute settlement system by 2024, pledging support for achieving this goal. They referenced ongoing informal discussions on dispute settlement reform and the multi-party interim appeal arrangement as a temporary alternative.
In summary, the WTO's dispute settlement reform talks are making progress, and the finish line appears within reach, though challenges remain. Members continue to work toward strengthening the dispute resolution system to ensure it remains an effective tool for resolving trade disputes among nations.
