WTO: China blames US as appeal court comes to a halt, sparking new fears for global trading system

The World Trade Organisation’s (WTO) Appellate Body no longer has the minimum number of judges required to hear appeals to trade disputes

China says the United States has been an ‘obstruction’, while Washington openly admits it has been trying to force change at the world trade referee

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The World Trade Organisation’s (WTO) Appellate Body is the final court of appeal for trade disputes heard at the Geneva-based trade body and it requires a minimum of three judges to hear cases. Photo: AFP

Published: 7:30am, 11 Dec 2019Updated: 2:37pm, 12 Dec 2019

The appeal court at the World Trade Organisation has disintegrated after the tenure of two of its final three judges expired, with China laying the blame squarely at the feet of the United States.

The World Trade Organisation’s (WTO) Appellate Body is the final court of appeal for trade disputes heard at the Geneva-based trade body and it requires a minimum of three judges to hear cases.

It is considered by many to be the WTO’s most effective mechanism, since its rulings can result in tariffs being placed on contesting member nations, meaning it is viewed as a deterrent against unilateral protectionism.

But with the US blocking the appointment of new judges, allowing the number to dwindle from seven, it can no longer function.

This removes a vital cog in the multilateral trading system, critics say, which could usher in a period of further disruption to global trade, after a year and a half in which the US and China have already been operating outside WTO rules during their bitter tariff war.

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