Arbitration — the stop-gap when WTO appeals are unavailable

By Peter Ungphakorn
POSTED AUGUST 4, 2020 | UPDATED DECEMBER 21, 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, through arbitration instead of going through the non-functioning Appellate Body.

But unlike a standard appeal, the outcome of the arbitration would not be formally adopted by the WTO’s membership, and therefore would not be part of official WTO law — at least not with the same weight as a full appeal.

On October 6, 2022, the first case was appealed. Less than three months later on December 21, it produced the first arbitration appeal ruling.

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