In anticipation of an upcoming meeting of WTO trade ministers in two weeks, India has sought a comprehensive reform of the dispute settlement system. It emphasises the necessity of a comprehensive package rather than a piecemeal approach favored by some members. The WTO's dispute settlement body remains inactive due to the US's repeated stalling of appointments to the appellate body, spanning multiple presidential administrations, starting with Barack Obama's tenure. While almost all countries are seeking to revive the system as it gave all member nations a chance to challenge rules that were seen to be against global norms, the US has blocked any attempts to revive it.
Following the mandate from the last meeting of ministers, WTO members are striving to find a solution before the next ministerial conference in Abu Dhabi. However, the current proposals are viewed as inequitable by countries like India. Consequently, India has allied with Indonesia, South Africa, Bangladesh, Egypt, and others to submit a joint proposal.
They have argued that the central interest of reviving the appellate body has not been addressed during the deliberations so far. Instead, the attempt has been to undermine the fundamental nature of the “rules-based, two-tier” system, with a standing appeal mechanism and decisions that are binding, the paper said. The existing system includes a dispute settlement panel whose rulings can be appealed. The discussed proposal suggests changes to the panel's composition, which India and other countries involved in the submission argue will negatively affect the interests of developing and least developed nations