The WTO’s Appellate Body Crisis And Implications For India’s Arbitral Proceedings

V.L.V.Chaitra, Birla School of Law, Birla Global University, Bhubaneswar

ABSTRACT

The multilateral trading system is facing unprecedented challenges at various fronts. The present economic and political discourse poses a huge threat to the International rules of trade. The most pertinent threat to International trade in the present discourse is the so called “Crown Jewel” of the World Trade Organisation (WTO) i.e., the Dispute Settlement System (DSS).

Experts and Strategic Communities predict that the present discourse may lead us to the “GATT era” where not the law but power politics, sporadic co- operation and elusive consensus framed the International order. With the United States (US) obstruction of appointments to the WTOs Appellate Body (AB), the International communities seeking dispute resolution left with no forum for adjudication. This not only brings the WTOs mechanism to a halt but also challenges rule based International trading system and raises the questions regarding the relevance of Global Institutions.

The paper identifies the background of the crisis posed to the DSS, the AB and, its implications on International trade, especially from the lens of the COVID- 19 pandemic. It employs a broad analysis to examine the current scenario and also the position of India in the crisis as a developing nation. Further, it analyses proposed recommendations, reforms to solve the DSS crisis and examines how India can help recourse, reconstruct and catalyse a new consensus in resolving the AB crisis.

Keywords: Dispute Settlement System (DSS), Appellate Body (AB), Multilateral trade, International trade rules, COVID -19.