WTO Facing Critical Deadline; Solution Linked to Reform

GENEVA, SWITZERLAND – Members of the World Trade Organization heard last week how close the group is to a head-on collision with trade disputes. WTO Director-General Roberto Azevêdo observed that members had barely two months left to solve the Appellate Body impasse. Without a resolution, the Appellate Body Dispute Settlement will no longer be able to rule on disputes between countries. WTO rules require at least three elected members to hear the disputes and the United States has been blocking all elections for the past two years, all while existing members leave the panel as their terms expire. For the U.S., the strategy is forcing the member-group of nations to hear – and act – on changes the Trump administration has been asking for. Looking ahead, Azevêdo said that in order to lay the groundwork for meaningful outcomes at the Ministerial Conference in Kazakhstan next June, members would need to bridge substantial differences in a short time frame. He also pointed to the record level of interest and attendance at the previous week’s WTO Public Forum as a sign that members’ ongoing efforts on reform were gaining recognition. He also noted, however, that hard work would be needed to translate positive momentum into concrete outcomes. The Director-General also called attention to recent WTO statistical forecasts showing that global merchandise trade was slowing and that services trade was also losing momentum.