Arbitration — the stop-gap when WTO appeals are unavailable

A group of WTO members have agreed on an alternative way to get a second legal opinion

By Peter Ungphakorn
POSTED AUGUST 4, 2020 | UPDATED FEBRUARY 13, 2020

On August 3, 2020, a group of 50 World Trade Organization members — 30% of the membership — announced that an alternative arrangement was up and running, as a means of getting round a blockage preventing formal appeals in WTO dispute settlement.

Developed gradually since early 2019, the system would retain countries’ ability to get a second opinion after a first-stage “panel” ruling, but unlike a formal appeal, the outcome would not be part of official WTO law.

Continue reading “Arbitration — the stop-gap when WTO appeals are unavailable”

Were Trump and Lighthizer right about WTO disputes?

The US’s claim that it is a victim in the WTO is based on a truly blinkered view. And that’s being generous

By Peter Ungphakorn
POSTED JUNE 21, 2020 | UPDATED JANUARY 22, 2021

“We lose the lawsuits, almost all of the lawsuits in the WTO”. So said President Donald Trump in October 2017, just one of three huge untruths he uttered in barely 100 words.

Like the bad loser in the school playground, Trump might as well have wailed: “You’re all cheats!”

But the sentiment persists in US politics and was repeated on June 17, 2020 by Trump’s US Trade Representative, while more broadly an anti-WTO campaign mounts and US belligerence has thrown the WTO into crisis.

Continue reading “Were Trump and Lighthizer right about WTO disputes?”

Spot the difference: US tariffs on Scotch are not part of a tariff war

BBC Question Time was wrong about tariffs. It matters.

By Peter Ungphakorn
FROM UK TRADE FORUM, JANUARY 24, 2020 | UPDATED DECEMBER 9 2020

On January 23, 2020, Fiona Bruce, the host of Question Time on BBC TV, repeatedly and wrongly confused US tariffs on Scotch whisky with the US threat to raise tariffs on cars if Britain taxes digital technology companies.

The mistake matters because UK-US trade talks are likely to feature regularly over the coming months, not least on Question Time. Continue reading “Spot the difference: US tariffs on Scotch are not part of a tariff war”

How the WTO deals with problem trade measures—it’s not just dispute settlement

The Appellate Body is in a deep freeze, but those who think it will drag trade into the law of the jungle are in for a surprise

By Peter Ungphakorn
POSTED DECEMBER 11, 2019 | UPDATED JULY 14, 2021

A very short summary and graphic:
Dispute settlement is not essential (but it helps)

The public discussion of the Appellate Body crisis in the World Trade Organization (WTO) has revealed some fundamental misunderstandings about how governments’ actions on trade are handled in the organisation.

This is important. The WTO is now a quarter of a century old. Its real achievements are hardly noticed. They never hit the headlines.

Instead, the impression we get is that it’s all about the dispute settlement crisis (and previously the struggle to conclude negotiations).

The Appellate Body has been unable to function since December 11, 2019. This has crippled WTO dispute settlement, we’re told, ultimately jeopardising a trading system that’s supposed to be based on rules — rules that can no longer be “enforced” as a result of the crisis.

We’re going to be left with the law of the jungle instead of the rule of law. Just watch and wait. It could be the end of the WTO, we’re told.

We might have to wait an awfully long time, because keeping international trade within agreed rules relies on much more than dispute settlement. In fact a key purpose of the WTO is to keep formal disputes to a minimum, and it does a pretty good job at that.

Continue reading “How the WTO deals with problem trade measures—it’s not just dispute settlement”

A bit of bother down at the WTO court — Why? And is it a killer? Long read

WTO dispute settlement is in trouble, but it can struggle on at least for a while. So can the organisation’s other important functions

By Peter Ungphakorn
POSTED AUGUST 21, 2019 | UPDATED MARCH 24, 2021

This looks at the WTO Appellate Body crisis in some depth.
A simpler version is here
.
See also:
How the WTO deals with problem trade measures—it’s not just dispute settlement and The WTO is surprisingly busy — considering it’s supposed to be dead

A casual glance at the headlines might have misled us into thinking the World Trade Organization (WTO) would grind to a halt at the end 2019, that the blame lay entirely with US President Donald Trump, and that the WTO’s demise would bring anarchy to world trade.

Only the last of those three assertions is possibly correct; and only if the WTO really does die — which it certainly won’t, not in the near future.

This is an attempt at an explanation. It shows that even WTO dispute settlement could well survive, but in a less powerful form. Other important work in the WTO will continue, and therefore so will the WTO itself.

But be warned: simple explanations of complex issues cannot tell the whole story. And even this attempt is not that simple. Sorry.

Continue reading “A bit of bother down at the WTO court — Why? And is it a killer? Long read”

By Christmas 2019 the WTO was supposed to be dead — why wasn’t it? A short explanation

Reports of the WTO’s demise are premature. Yes, dispute settlement is in trouble, but even that can hobble on

By Peter Ungphakorn
POSTED AUGUST 21, 2019 | UPDATED FEBRUARY 13, 2021

This short explanation skims the surface of some pretty complicated issues. If you want more detail, with more links and references,
then try this longer version
.
See also:
How the WTO deals with problem trade measures—it’s not just dispute settlement and The WTO is surprisingly busy — considering it’s supposed to be dead

The doom-mongers had already written off the WTO. From December no new appeals in WTO disputes would be possible and the whole organisation would grind to a halt, they claimed. They were wrong.

The problem is with the appeals stage of WTO legal disputes. Some countries are finding ways to work around that. WTO disputes cannot be the same without a properly functioning Appellate Body, but they can continue even if the system is weaker.

As for the rest of the WTO’s work, it does not rely on dispute settlement. True, member countries participate in those functions more confidently if they know the disputes system is working well, but it will still take years before they lose confidence so badly that they give up on the WTO altogether.

Continue reading “By Christmas 2019 the WTO was supposed to be dead — why wasn’t it? A short explanation”