Trade officials said the world trade organization's "Supreme Court" - the Appellate Body - was practically doomed to close on Monday after the United States said it would not support a proposal to allow the body to continue functioning. But the WTO director general vowed to find a solution.
Data picture: traffic lights outside the headquarters of the World Trade Organization (WTO), Geneva, Switzerland, October 2018. REUTERS/Denis Balibouse
The Appellate Body of WTO usually has seven judges and is responsible for dealing with trade disputes. For more than two years, the U.S. trump administration has blocked the WTO Appellate Body from appointing new judges, which U.S. officials say is acting outside its remit.
The appellate body needs at least three judges to function properly. But of the three judges in office, two will expire on Tuesday, and there will be no new judge to replace them because of American obstruction.
On Monday, WTO members again tried to reach a consensus on the arrangements to fill the vacancies in judges' positions and on the decision to be made within 90 days when the appellate body is required to handle disputes.
But Dennis Shea, U.S. ambassador to the WTO, said other WTO members failed to address U.S. concerns, including what he called "ultra vires" and "disregard" of WTO rules by the WTO Appellate Body.
In a speech released by the U.S. delegation to the WTO, Xi Danan said that the United States does not support the proposal of the appellate body to start filling vacancies.
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