WTO Dispute Settlement Mechanism and the Appellate Body Crisis
The WTO's dispute settlement system, established under the Dispute Settlement Understanding (DSU) of 1994, is considered the "crown jewel" of the multilateral trading system. It operates in two stages: Panel rulings (first instance) and Appellate Body review (appeal). The Appellate Body is a 7-member permanent standing body; since 2017, the US has systematically blocked new member appointments, citing concerns about the AB overstepping its mandate. By December 2019, the AB fell below the quorum of three members and became non-functional. Members have since used the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) under WTO Article 25 as a workaround — but India has not joined MPIA, arguing it undercuts the right to a permanent standing body. Restoring a fully functional dispute settlement system is a key agenda item at MC14.
- WTO Dispute Settlement Understanding (DSU): established 1994 under the Marrakesh Agreement
- Appellate Body: 7 members, 4-year terms; requires minimum 3 for a panel
- US blockade: began 2017 (Trump first term); Appellate Body non-functional since December 2020
- MPIA (Article 25 arbitration): interim workaround; India not a party — prefers full AB restoration
- India's position: MPIA arrangements undermine the right to a permanent, binding appeal mechanism
- India has been one of the more active users of the WTO dispute settlement system
● Tracked since March 25, 2026 · last seen April 21, 2026 · updates as the daily brief publishes