Türkiye and EU: appeal-by-arbitration cases leave questions about WTO law

Similar to the 50-member ‘Multi-party Interim Appeal Arrangement (MPIA)’, one ruling has been formally adopted, the other not

Originally published as
Alternative to the alternative: Turkey and EU use arbitration for WTO appeals
and previously as one section in
Arbitration — the stop-gap when WTO appeals are unavailable

By Peter Ungphakorn
POSTED AUGUST 30, 2022 | UPDATED SEPTEMBER 26, 2022

Türkiye told World Trade Organization members on August 29, 2022 that it would comply with dispute rulings that said it was violating WTO agreements by giving preferences to locally-produced pharmaceutical products, even though the rulings have not been formally adopted.

So far, the case is unique among WTO legal disputes. It is the first use of appeal-by-arbitration as a route to a second legal opinion on a ruling, while the WTO Appellate Body cannot function.

And because at the time arbitration was the only route open to Türkiye to appeal the case, neither the first-stage “panel” ruling, nor the findings in the appeal, have been formally adopted by the WTO’s membership.

This raises questions about the status of the rulings in WTO law. When a ruling has been formally adopted, governments (and others involved in trade) can assess with a degree of confidence whether similar policies or measures comply with WTO agreements.

When the membership has not adopted a ruling, that confidence is weakened, although some legal experts suggest the difference is small. The US treats non-adoption as significant without explaining why.

Continue reading “Türkiye and EU: appeal-by-arbitration cases leave questions about WTO law”

Alternative to the alternative: Turkey and EU use arbitration for WTO appeals

Similar but not the same as the 50-member ‘Multi-party Interim Appeal Arrangement (MPIA)’

This has now been republished as
Türkiye and EU: appeal-by-arbitration cases leave questions about WTO law — Similar to the 50-member ‘Multi-party Interim Appeal Arrangement (MPIA)’, one ruling has been formally adopted, the other not

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 MAY 3, 2022

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”