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TWN
Info Service on WTO and Trade Issues (Nov25/16)
Trade: US again blocks Appellate appointments, DSS reform talks to
restart? Geneva, 25 Nov (D. Ravi Kanth) -- The chair of the World Trade Organization's Dispute Settlement Body (DSB), Ambassador Clare Kelly of New Zealand, is likely to restart formal negotiations on the reform of the dispute settlement system (DSS) that have remained dormant for the past ten months. This comes amid growing frustration among members over separating the reform of the dispute settlement system from other institutional reform discussions, said people familiar with the development. At a small-group meeting with select countries on 24 November, several delegations inquired about restarting the dispute settlement system reform discussions, said people familiar with the development. Participants in the chair's consultations included Norway, Singapore, Chinese Taipei, Guatemala, Peru, Colombia, and El Salvador, among others, said people familiar with the meeting. In particular, several South American countries expressed sharp concern. One member suggested that a de facto reform of the dispute settlement system has already occurred, leading to the demise of the two-tier system and countries being forced to accept bilateral trade agreements under the pressure of unilateral reciprocal tariffs, said a participant who asked not to be quoted. Another participant, who also asked not to be quoted, stated that the national security exceptions invoked by the United States, the European Union, and China are a major issue. At a regular meeting of the DSB on 24 November, the chair announced that two items have been removed from the meeting's agenda. The first was a request from Indonesia for the adoption of the panel ruling in DS616 concerning "European Union - Countervailing and Anti-Dumping Duties on Stainless Steel Cold-Rolled Flat Products from Indonesia." The EU decided to appeal the panel ruling that ruled in favour of Indonesia. The second item removed from the agenda was Brussels' request for DSB authorization to impose counter-measures on US goods imports, in line with the arbitrator's decision in DS577: "United States - Anti-Dumping and Countervailing Duties on Ripe Olives from Spain." Meanwhile, for the 92nd time, the US blocked a joint proposal from 130 countries to begin the selection process to fill the vacancies at the Appellate Body (AB) expeditiously. The AB has remained dysfunctional since the US began blocking appointments in December 2019. Colombia, speaking on behalf of the 130 countries, emphasized that an overwhelming number of members are concerned about the continued paralysis of the AB and want the WTO's dispute settlement system to function urgently. The US stated that it does not support the proposed decision and continues to reflect on "the extent to which it is possible to achieve such a reformed WTO dispute settlement system that advances US interests while preserving US sovereignty, consistent with what WTO members agreed to in the Dispute Settlement Understanding (DSU)." More than two dozen countries took the floor to comment, with most voicing support for the joint proposal. a
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