‘Painful’ exit of Chinese member leaves WTO appeals body without a judge and trade dispute cases in limbo

Zhao Hong finished her term as a member of the Appellate Body with parting words that an ‘existential crisis’ loomed for the WTO

The election of Joe Biden as the next US president brings hope in Western countries that America will resume interest in multilateral institutions

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The WTO Appellate Body has effectively been defunct since December 10 last year when two of the last three judges finished their terms. The last member, Zhao Hong of China, finished her term on Monday, leaving the world trade dispute settlement panel without a judge. Photo: AFP

Published: 10:00pm, 2 Dec 2020Updated: 11:58pm, 2 Dec 2020

For the first time since the World Trade Organization was set up 25 years ago, its Appellate Body, dubbed the top court for world trade, will have no serving judges after the departure of the Chinese member, curbing the WTO’s capacity to handle disputes.

Zhao Hong, the last member of the appeals panel at the WTO’s dispute settlement mechanism, “the crown jewel” of the international rules-based trading system, warned of an existential crisis over the organisation during her farewell speech in Geneva on Monday.

Zhao said it was “painful” and “worrisome” to see the appeals body become defunct a year ago and cases left in limbo while the caseload continued to increase.

“The WTO’s existential crisis is looming large. This should be highly alerted and clearly sensed by all members,” she said.

The WTO Appellate Body comprises seven judges appointed by the Dispute Settlement Body to serve for four years. At least three judges are needed to rule on a case.

Since the Barack Obama presidency in the United States, the US has been blocking the appointment of Appellate Body judges, citing concerns that the court’s judgments violated American interests.