U.S. Trade Representative Katherine Tai excluded the possibility of reaching an agreement on reforming the appeal system for dispute resolution at the World Trade Organization (WTO) this week, but stated that the organization's negotiations on the matter are positive and show some progress. Tai, speaking to reporters on the sidelines of the thirteenth WTO Ministerial Conference in Abu Dhabi, mentioned that discussions on dispute resolution would continue to address "much tougher issues" after the conference concludes later this week.
When asked to describe the atmosphere in the negotiations regarding dispute resolution, Tai described it as "positive, cooperative, constructive, and prudent. We have more work to do." Tai rejected accusations against Washington claiming that its stance on dispute resolution has paralyzed the WTO, but acknowledged that the issue of reforming the appeal mechanism remains challenging. She added, "There are a set of other issues that will be more difficult and take longer to address, such as what needs to be done with this appeal mechanism and how there can be a review mechanism that does not replicate the problems of the previous appellate body."
The WTO’s dispute resolution system has been stalled for years as the United States blocks the appointment of new judges to the appellate body. Washington contends that the body has overstepped its authority by establishing new trade rules. The absence of an appellate body has left multibillion-dollar trade disputes unresolved, and many WTO members consider the restoration of its functionality a key objective of the thirteenth ministerial conference.
