No Progress On WTO Appellate Body Appointments As Ranks Thinning

The imbroglio which might cause a major impediment to the World Trade Organization’s functioning is thickening as the United States continues to block the selection process to fill vacancies in the WTO Appellate Body, according to sources.

The WTO Appellate Body is a standing body of seven members appointed by the WHO Dispute Settlement Body (DSB), who hear appeals from reports issued by panels in disputes brought by WTO members, according to the WTO.

The current impasse can induce substantial delays in the processing of disputes, according to sources.

There currently are two vacancies in the Appellate Body, and one more to arise at the end of December. Down to four, the Appellate Body would be dangerously close to its minimum quorum of three members.

According to a source, during the DSB meeting this week, a number of members took the floor to express concern about the stalemate. Argentina, Brazil, Colombia, Chile, Guatemala, Mexico, and Peru submitted a revision of their proposal [pdf] for the selection process, as did the European Union, also submitting an earlier version of their proposal [pdf]. Both proposals call for a single selection process to fill all vacancies at the same time.

The reason put forward by the US, according to the source, is that one member of the Appellate Body continued to serve despite the expiration of his term. The source said that only the DSB has the authority to decide whether that member should continue.