EU Approves Workaround For Stalled WTO Panel

European Union countries on Wednesday approved a multilateral mechanism designed to stand in for the WTO's stalled appeals panel which was knocked out by US opposition.

The European Council, representing the bloc's 27 member states, said it "gave the go-ahead to the multi-party interim appeal arbitration arrangement (MPIA), a new system that will allow the EU, together with other participating WTO members, to overcome the current paralysis of the WTO's Appellate Body and solve trade disputes amongst themselves".

The new mechanism is to be temporary, it said, and "mirrors the main features of the WTO appeal system," notably with decisions being binding on participating countries.

The WTO's panel ceased operation on December 11, 2019 after the US blocked the appointment of new judges, preventing it from reaching a three-judge quorum.

President Trump's administration has accused the panel of harming US interests and of overreach.

The demise of the WTO panel -- sometimes called the supreme court of world trade -- placed international trade disputes in legal limbo, prompting the EU, Canada, Norway and other countries to cast around for a substitute.

Last month they announced the creation of the MPIA, which they said they would adhere to after clearing national procedures.

Other participating countries and territories are: Australia, Brazil, China, Chile, Colombia, Costa Rica, Guatemala, Hong Kong, Mexico, New Zealand, Singapore, Switzerland, Taiwan and Uruguay.

The European Council said any WTO member was welcome to join, adding that the mechanism was expected to be operational within weeks. (AFP)