The World Trade Organization (WTO) has lost the power to decide disputes between its members. This is the first time this has occurred since its creation in 1995, and it means that major commercial disputes, such as the conflict between the United States and China, can no longer be resolved through arbitration.
164 countries and territories are part of the WTO. When its members cannot reach an agreement on their own, they can call an organization panel. If the parties in question do not agree with the panel's decision, an appeal can be made. It is then up to the WTO appeals body to make a final decision, which has the force of law. However, it is no longer functioning as a court of justice.
Typically, the appellate body has seven judges. This number, however, dropped to just one this Tuesday (10), the day on which the mandate of two of its last three judges came to an end.
The World Trade Organization has not been able to find new magistrates, as the US has rejected all the candidates presented. Washington has accused the appeals body of not complying with rules regarding the decision-making timetable. The American side also states that it will not support a new nomination that would allow the court to continue to act.
The director general of the World Trade Organization, Roberto Azevedo, said that he intends to consult several member countries of the organization, in order to find a way out of the current impasse.
Source: agrolink
