Synopsis International Trade Law Ix Trimester Topic-Regionalism: An Answer To The Appellate Body Crisis

SYNOPSIS
INTERNATIONAL TRADE LAW
IX TRIMESTER
TOPIC- REGIONALISM: AN ANSWER TO THE APPELLATE BODY CRISIS
INTRODUCTION
Today, The WTO is in a crisis. Considered the ‘crown jewel’ of the Multilateral Trading
System, the Appellate Body, the Supreme authority on all matters related to trade, sits
defunct as the U.S. blocks appointment of panellists to the same. However, such obstruction
isn’t without a reason. The U.S. along with a few WTO members for a long time have had
problems with the role that the Appellate Body has played in deciding Trade disputes. These
mainly include the problems of Appellate Body exceeding its role as an international
adjudicatory body ,disregard of the principles of Judicial economy and delays in deciding of
matters, i.e, the body exceeding its 90 day limit to release a report. Though a proposal to
apply stop-gap solutions like the ‘Multi-party Interim Arbitration Arrangement’ has been
forwarded, it is only temporary in nature and might risk eternal disfunction of the WTO.
At a time like this, attention should be given to Regional Trade Agreements. Regional Trade
Agreements, like FTAs, can be an insurance policy to the slow process of WTO treaty
negotiations and relative ineffectiveness of regional inter-governmental organizations. With
the country opening its trade policy mechanisms for negotiation and at the same time
retaining its right to adjudicate on its sovereign matters, they establish a win-win situation for
all partner countries. The Dispute Settlement Mechanisms in the RTAs employ swift action
mechanisms and provide more policy building space to member countries, a topic which is
currently under debate at the WTO. Thus, the paper will discuss how trade policy
mechanisms under these regional trade agreements can be used as blueprints for renewing the
WTO Multilateral System and protect its sanctity.
STATEMENT OF PROBLEM
The Appellate Body’s function has been rendered ineffective, at this juncture a new and
effective solution to this problem needs to be implemented at the earliest.
OBJECTIVES OF STUDY
 To identify the problems posed by the current WTO system.

 To examine the administrative and judicial procedures of RTAs.
 To compare these administrative and judicial procedures to that of WTO.
 To examine how the RTA mechanisms can bridge the inconsistencies of the WTO
multilateral system.
HYPOTHESIS
Regionalism would in no way undermines the WTO multilateral trading system rather it
would provide gap filling mechanisms to the inconsistencies of the WTO.
RESEARCH QUESTIONS
 How are RTAs perceived in WTO trading system ?

 Why do countries increasingly enter in an RTA ?
 What are the inconsistencies suffered by the WTO mechanisms?
 What are the trading mechanisms employed in an RTA ? How can these be
implemented within the WTO?
 What are the possible obstacles that might be encountered while implementing
this solution?
RESEARCH METHODOLOGY
The researcher has employed a combination of both doctrinal and qualitative research. The
emphasis is upon analysis of legal rules, principles or doctrines along with an examination of
their interplay with political realities. The sources of the researcher’s analysis have been
located in statutes, judicial pronouncements, and discussions in commentaries, textbooks,
journals, and debates. A careful observation has also been made by analysing experiences of
individuals or groups, by analysing interactions and communications or by analysing
documents. On the basis of the analysis of the same the researcher has advanced the set of
formulations.
BIBLIOGRAPHY
STATUTES
 General Agreement on Tariffs and Trade [1994] (15 April 1994) LT/UR/A–
1A/1/GATT/1 (GATT)
ARTICLES
 James J. Nedumpara, ‘Saving WTO disputes via Multiparty Interim Arbitration

Mechanism?’ (Indian Journal Of International Economic Law (IJIEL), 2020)
 Stephan W. Schill and Geraldo Vidigal, ‘Reforming Dispute Settlement in Trade:
The Contribution of Mega-Regionals’ (RTA Exchange. Geneva: International Centre
for Trade and Sustainable Development (ICTSD) and the Inter-American
Development Bank (IDB), 2008)
 Roberto Fiorentino, Luis Verdeja and Christelle Toqueboeuf, ‘The Changing
Landscape of Regional Trade Agreements: 2006 Update’, (2006) WTO Regional
Trade Agreements Section Trade Policies Review Division Discussion Paper no. 12,
< https://www.wto.org/english/res_e/booksp_e/discussion_papers12a_e.pdf> accessed
5 April 2020, at p. 27
 Petros Mavroidis, ‘If I don't do it, somebody else will (or won't): Testing the
compliance of preferential trade agreements with the multilateral rules’, (2006) 40
JOURNAL OF WORLD TRADE 187
 Masahiro Kawai and Ganeshan Wignaraja, ‘Regionalism as an Engine of
Multilateralism: A Case for a Single East Asian FTA’, Asian Development Bank
Working Paper Series on Regional Economic Integration No. 14 <
https://aric.adb.org/pdf/workingpaper/WP14_East_Asian_FTA.pdf> accessed 13
April 2020 , at p. 5
BOOKS
 M. J. Trebilcock, Robert Howse, The Regulation of International Trade ( 2nd edn.,

Routledge publishers, London 1999) 502-503
Towards the end of 2019, the global trading network suffered a major set-back when it saw
the functioning of the Appellate Body, the highest appellate authority of the WTO, come to
end. The persistent blocking of the appointment of judges to the Body along with a
widespread discontent with its decision-making procedure was reason enough for the Body to
be rendered defunct. Since then many members have suggested various stop-gap measures to
ensure the satisfactory redressal of the ongoing and pending disputes at the WTO. However,
these procedures shall be taken for what they are; temporary solutions to a permanent
problem. Members like India advocate that temporary solutions like these may divert
attention of members from restoring the two-tier dispute settlement system and cause an
irrevocable damage to the sanctity of multiparty-redressal institutions.
In a climate like this, countries are more likely to coordinate policies bilaterally rather than
depend on the multilateral system in its existing state. The increasing willingness of countries
like the United States to renegotiate the terms of their respective RTAs is enough to support
the fact that countries may now gearing to conceptualize a rule based international trading
system through the support of regional institutions. Can RTAs then be considered as
blueprints for negotiating new multilateral trade rules? The paper attempts to answer this by
determining the perception of RTAs within the multilateral trade network. It is proposed that
the administrative and judicial mechanisms within the RTAs are geared to effectively resolve
disputes between parties the without projecting a conflict to the multilateral trading system.
However, such mechanisms are not devoid of obstacles and suggestions to resolve the same
would be discussed before concluding the analysis.

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SYNOPSIS

INTERNATIONAL TRADE LAW

TOPIC- REGIONALISM: AN ANSWER TO THE APPELLATE BODY CRISIS

 To identify the problems posed by the current WTO system.

 How are RTAs perceived in WTO trading system ?

 James J. Nedumpara, ‘Saving WTO disputes via Multiparty Interim Arbitration

 M. J. Trebilcock, Robert Howse, The Regulation of International Trade ( 2nd edn.,

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