Topic: Important International institutions, agencies and fora- their structure, mandate.
2. Why has the U.S. crippled the functioning of the WTO? Discuss in detail the reasons for US actions and efforts to revive the appellate body.(250 words)
Why this question:
The U.S. decisions making the World Trade Organization’s Appellate Body dysfunctional. Thus the question.
Key demand of the question:
Discuss in why the US has been crippling the functions of WTO, what are the consequences of it and what can be done to overcome it.
Directive:
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Discuss the context of the question.
Body:
Explain the background of the question.
In December 2019, the U.S. cut short its share of the funding to the WTO. This move has resulted in a shortage of funds for the Appellate Body of WTO to function.
The U.S. has also stalled the selection process for filling six vacancies at the Appellate Body by virtue of the veto power it enjoys in the appointment process. Consequently, the Appellate Body is left with only one member, who will not be able to deliver any rulings on pending trade disputes since a quorum of three members is required to adjudicate any dispute.
Discuss the dispute settlement at WTO.
Explain the issue in detail and suggest what needs to be done.
Conclusion:
Conclude that the strangulation of the Appellate Body is a reflection of unilateralism and protectionism that are on a sharp rise. The absence of the Appellate Body paves the way for the return of the General Agreement on Tariffs and Trade, 1947 rules which many countries consider as a step back in global trade.
