Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
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A Study on the Crises and Reforms of World Trade Organization Appellate Body

WTO 상소기구의 위기와 개혁방안에 대한 연구

  • Dongchul Kwak (Center for Trade Studies and Cooperation, Korea International Trade Association)
  • 곽동철 (한국무역협회 통상지원센터)
  • Received : 2020.03.31
  • Accepted : 2020.04.25
  • Published : 2020.04.30
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Abstract

The dispute settlement mechanism of the World Trade Organization (WTO) is in great peril. The Appellate Body has ceased to function last December as the United States has blocked the appointment of new Appellate Body members since 2017. The focus of this study is on the examination of US's discontent on the Appellate Body and various efforts to reform the Appellate Body. In a recent report, the US Trade Representative raises its concerns on the Appellate Body including 90 days mandatory deadline, transitional rules for outgoing Appellate Body members, scope of appeal, advisory opinions, precedent, recommendation, and overreach without offering any viable solutions. Some of WTO members and experts proposed several Appellate Body reform measures but agreement between WTO members is unlikely in a foreseeable future. Alternative dispute settlement mechanisms should be seriously considered such as interim appeal arbitration arrangements, separate dispute settlement mechanisms for trade remedies, unilateral retaliatory measures without WTO authorization. Rules-based multilateral dispute settlement system is imperative to small open economies like Korea. The Korean government should actively participate in Appellate Body reform discussions with other WTO members to keep the WTO dispute settlement system from collapsing.

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References

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