The European Commission announced, on Friday 27 March, that the EU had joined 15 other members of the World Trade Organisation (WTO) in identifying an arrangement to resolve their trade disputes, the time to resolve the paralysis of the organization's Appellate Body (AB).
This agreement "delivers on the political commitment taken at ministerial level in Davos in January" (see EUROPE 12411/8), stressed Trade Commissioner Phil Hogan in a statement. Based on the WTO's two-stage appeal mechanism (see EUROPE 12271/16), it is similar to the bilateral agreements already signed with Canada (see EUROPE 12321/15) and Norway (see EUROPE 12353/13), with some exceptions. Thus, it will consist of a pool of 10 permanent appeal arbitrators - and thus not exclusively former AB members. It is also foreseen that these judges will be able to consult each other in order to ensure the consistency of their decisions. Finally, a fast-track procedure is envisaged in order to assist rapid decision-making.
Despite the presence of China, the countries that have joined this Arrangement account for less than 40% of the cases initiated by the EU at the WTO, according to Commission data. Signatories include Australia, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Mexico, New Zealand, Norway, Singapore, Switzerland and Uruguay - that is, in comparison to the Davos Declaration group, Hong Kong has been added but minus the Republic of Korea and Panama.
"This agreement bears testimony to the conviction held by the EU and many other countries that in times of crisis, working together is the best option", he said. And to invite other WTO members to join "this open arrangement, crucial for the respect and enforcement of international trade rules".
As soon as this arrangement is notified to the WTO, it will become operational - which the Commission expects to happen in the coming weeks, once the signatories have completed their internal procedures.
Mr Hogan recalled that these were provisional measures: "we will continue our efforts to restore the appellate function of the WTO dispute settlement system as a matter of priority". The Commission's communiqué also places great emphasis on the leading role played by the Union in the process of establishing this interim solution.
To view the Ministerial Declaration: https://bit.ly/2WRjXhx
To read the Arrangement: https://bit.ly/39pet0f . (Original version in French by Hermine Donceel)