The WTO members should take swift action to resolve issues hampering the functioning of the dispute settlement mechanism of the multi-lateral body, chair of its appellate body Ujal Singh Bhatia has said.
There is an issue of appointment of members of the appellate body of the WTO's dispute settlement body. The US has blocked appointment of these members.
"Unless WTO Members take swift and robust action to remedy this situation, there may soon come a time when Divisions of three Appellate Body members can no longer be formed, thereby effectively paralysing appellate proceedings," Bhatia has said.
Such a paralysis would not concern only the appellate body, but would have profound implications on panel proceedings as well, he said.
The dispute settlement mechanism is an important arm of the WTO (World Trade Organisation) to resolve trade disputes among member nations. The appellate body is the apex institution to adjudicate disputes.
He said that the body is now operating at half-capacity, with only four active members, and "seriously undermining the collegiality of our deliberations".
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The decrease in serving members is likely to cause further delays in appellate proceedings, Bhatia added.
India along with other members have time and again raised concerns on the matter.