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28 February, 2024

Moving Towards WTO Dispute Settlement Reforms

Key Points:

  • India emphasized the urgent need for restoring the Appellate Body at the WTO Ministerial Conference in Abu Dhabi.
  • The Appellate Body has been dysfunctional since December 2019, impacting the credibility of the WTO's rules-based trade system.
  • India highlighted the essential role of a reliable dispute settlement system in maintaining a fair global trading framework.
  • An informal reform process has been underway, but India proposed formalizing and multilateralizing it to be more inclusive and transparent.
Potential Exam Questions:
  • Why is the restoration of the Appellate Body crucial for the WTO, according to India?
  • Discuss the challenges faced by developing countries in the informal dispute settlement reform discussions at the WTO.
  • What three-point action plan did India propose for advancing the dispute settlement reforms at the WTO?

Strategies for Advancing Dispute Settlement Reforms:

India recommended transitioning the reform discussions to formal WTO bodies, prioritizing inclusivity, transparency, and consensus-building. The focus on restoring the Appellate Body was deemed essential for a functional dispute settlement system.

"A credible and reliable WTO DS system is the bedrock of an equitable, effective, secure, and predictable multilateral trading system." - India

Summary

India's strong advocacy for the restoration of the Appellate Body and formalization of the ongoing dispute settlement reform discussions at the WTO underscores the critical importance of a functional and inclusive global trade dispute mechanism.

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