TWN Info Service on WTO and Trade Issues (Jun26/12)
25 June 2026
Third World Network

Trade: US again extends Appellate Body paralysis amid DSS reform talks
Published in SUNS #10469 dated 25 June 2026

Geneva, 24 Jun (D. Ravi Kanth) -- The United States on 23 June blocked for the 98th time a request from 130 members at the World Trade Organization to expeditiously fill the vacancies at the Appellate Body to make it operational again - a development that seems to suggest that Washington could adopt intransigent positions on bringing about comprehensive reform of the WTO's dispute settlement system (DSS), said people familiar with the development.

Immediately after a meeting of the WTO's Dispute Settlement Body (DSB), which showed little or no positive movement towards reviving the Appellate Body, the chair of the DSB, Ambassador Guilherme de Aguiar Patriota of Brazil, kick-started discussions on DSS reform, said people familiar with the development.

During the discussions at the DSB, Colombia, on behalf of 130 countries, again tabled the group's proposal to start the selection processes for expeditiously filling all seven vacancies at the Appellate Body.

Colombia highlighted that the extensive number of members seeking the expeditious filling of the vacancies at the Appellate Body - which has been "hanging fire" since December 2019 - has once again met with disapproval from the US.

More than 20 countries intervened on this issue, endorsing Colombia's joint proposal on the urgent need to restore a fully functioning dispute settlement system.

The US, however, rejected the call from the 130 countries by stating that it does not support the proposal for filling the Appellate Body vacancies.

Washington said its fundamental concerns over the WTO's dispute settlement system have not yet been addressed, maintaining that a well-functioning DSS requires reform efforts and that the proposal does not contribute to any reform objective.

At the last DSB meeting in May, the US said that "certain Members have recognized in prior meetings that a well-functioning dispute settlement system will necessitate reform, or argued that this item functions as a placeholder in the absence of a reformed dispute settlement system."

The US warned that "repeating this agenda item, which does not itself propose any reform, and with no change in facts or positions, does not contribute to any reform objective."

It recalled the efforts made by the "United States and other Members in recent years to identify appropriate reforms, but have held vastly different perspectives on the reforms that are needed."

"The repetition of this non-reform agenda item underlines those differences," the US said.

Washington also said that "a more productive approach in this forum would be to introduce an item on dispute settlement reform that does not simply call for restoring an Appellate Body with all of its fundamental problems."

Nevertheless, at the DSB meeting on 23 June, Colombia expressed regret that for the 98th time members have not been able to launch the selection processes to fill the vacancies at the Appellate Body.

It added that ongoing conversations about reform of the dispute settlement system should not prevent the Appellate Body from continuing to operate fully and members shall comply with their obligations under the Dispute Settlement Understanding (DSU) to fill the vacancies as they arise.

PANEL SET

Meanwhile, at the DSB meeting, China pressed forward with its second request for the establishment of a dispute panel to rule on India's tariff measures affecting imports of Chinese solar cells, solar modules and information technology (IT) products.

In its second request for panel establishment, China contended that the panel should determine whether tariffs applied by India to certain imported high-tech goods, as well as certain incentive measures for solar energy products that China says are contingent upon the use of domestic over imported goods, are consistent with India's WTO commitments.

China's first request for the establishment of a dispute panel was blocked by India at the DSB meeting on 22 May.

India expressed regret over China's second request for panel establishment at a time when dispute settlement resources are limited and should be reserved for genuine and unresolved trade concerns.

India conveyed to China that it had demonstrated the measures' consistency with its WTO obligations during the consultations with China.

The DSB agreed to the establishment of the panel.

Australia, Brazil, Canada, the European Union, Japan, the Republic of Korea, the Philippines, the Russian Federation, Singapore, Turkiye, the United Kingdom, and the United States reserved their third-party rights to the dispute.

Meanwhile, under "other business", Malaysia and Indonesia sharply challenged the European Union's compliance with the respective rulings in DS600 (European Union and Certain Member States - Certain Measures Concerning Palm Oil and Oil Palm Crop-Based Biofuels) and DS593 (European Union - Certain Measures Concerning Palm Oil and Oil Palm Crop-Based Biofuels).

The EU announced a sequencing agreement with Indonesia for DS593, which includes a structured dispute resolution procedure and potential appeal arbitration, while expressing readiness to engage bilaterally with Malaysia. +