Refer - The Indian Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
The World Trade Organisation’s Appellate Body (AB)—which is part of the WTO’s dispute settlement mechanism—went into hibernation.
US’s Stubborness
· The AB has gone into hibernation because the numbers of AB members kept dwindling, coming down to just one, due to the US blocking fresh appointments.
· The US has also expressed other concerns such as the AB’s treatment of Chinese state-owned companies, violations of statutory timelines as the AB often takes more time than stipulated to decide on a case, and AB rulings having precedential value.
· The US has turned out to be the biggest critic of the AB, while the Third World states like India are campaigning for its protection.
The AB has actually become a victim of its own success.
· Both in terms of sheer volume of cases and the wealth of jurisprudence produced, the AB has outperformed most international courts and international tribunals.
Adverse implications
· The most immediate implication would be that if any WTO panel report were appealed, it would go into a ‘void’, as the AB doesn’t have the minimum number of members required to hear the case.
· This would allow a country to block the adoption of the report if it loses a trade dispute, and thus not comply with the WTO panel decision.
· India, recently, has appealed against a WTO panel ruling, which pronounced India’s certain provisions of the domestic export incentive initiatives as WTO-inconsistent.
· Likewise, the US has appealed against a WTO panel ruling in favour of India in the renewable energy sector, thus allowing it to continue with the WTO-inconsistent measures.
Shivangi 5 years
Please review.
IAS Parliament 5 years
Good attempt. Keep Writing.
Manojkumar B 5 years
Kindly review
IAS Parliament 5 years
Good attempt. Keep Writing.
