Don’t miss the latest developments in business and finance.

US blocks renewal of WTO trade court judge as deadlock looms

Image
AFP Geneva
Last Updated : Aug 28 2018 | 8:35 PM IST

The United States this week blocked the reappointment of a judge at the World Trade Organization, increasing the risk that the global body could soon find itself unable to fulfil its key role in arbitrating trade disputes.

At a time when US President Donald Trump's protectionist policies have sparked a wave of trade wars, the institution best placed to help settle international trade differences and avoid further escalation is facing a deepening crisis.

The WTO's Dispute Settlement Body is battling with the effects of Washington's long-time refusal to sign off on the appointment of new judges to the court's appellate chamber.

And on Monday, the crisis worsened further when the US for the first time balked at even renewing the mandate of an existing judge.

Shree Baboo Chekitan Servansing of Mauritius will see his term end at the end of September, leaving only three judges to handle the appellate body's large caseload.

Washington's refusal to join the consensus needed to hand him another term has pushed the WTO's dispute settlement system to the edge of the abyss.

Also Read

The appellate body, which offers a last resort to settle international trade disputes and avoid escalation between countries, normally counts seven judges.

But the number has gradually dwindled amid Washington's refusal to agree to fresh appointees.

Three judges is the bare minimum needed for the appellate body to function.

Yet two of the three judges remaining once Servansing steps down next month will themselves see their mandates expire at the end of 2019.

The 164-member WTO is confronting a long line of headaches linked to

Disclaimer: No Business Standard Journalist was involved in creation of this content

More From This Section

First Published: Aug 28 2018 | 8:35 PM IST

Next Story