WTO to have a fully functional dispute settlement system by 2024: G20 leadership declaration

The declaration comes a day after a bilateral meeting was conducted between Prime Minister Modi and US President Joe Biden on September 8

The G20 leadership summit on September 9 declared it will together work towards having in place a fully functional dispute settlement system at WTO by 2024.

“We remain committed to conducting discussions with a view to having a fully and well-functioning dispute settlement system accessible to all members at WTO by 2024,” the G20 New Delhi Leaders’ Declaration read.

Also read: G20 Summit: PM Modi announces adoption of New Delhi Leaders' Declaration

It has been almost four years since the World Trade Organization’s Appellate Body, which is the dispute-settlement arm of the WTO, became defunct, thus affecting developing countries adversely.

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The body was established at the WTO in 1995, when it appointed its first seven-member panel. Members are appointed by consensus, for a four-year term. Appellate Body members must be persons of recognised authority, with demonstrated expertise in law, international trade, and the subject matter of the agreements concerned, and they must not be affiliated with any government. Most Appellate Body members have so far been university professors, practising lawyers, retired government officials, or senior judges.

This appeals mechanism currently lies dysfunctional with the US blocking appointments to the body, which has led to most panel reports being appealed “into the void,” leaving the dispute unresolved. This has made it extremely difficult to enforce WTO obligations through complaints against measures which may be in violation of WTO norms.

The declaration comes a day after a bilateral meeting was conducted between Prime Minister Modi and US President Joe Biden on September 8.

“We commit to work constructively to ensure positive outcomes at the WTO’s Thirteenth Ministerial Conference (MC13),” the statement added.

Also read: India and US resolve final WTO dispute, strengthen bilateral trade relations

The Ministerial Conference is the WTO's top decision-making body, which holds a meeting at least once every two years. The event is attended by trade ministers and other senior officials from the organisation’s 164 members. The previous Ministerial Conference (MC12) was held in Geneva in June 2022.

The 13th World Trade Organization (WTO) Ministerial Conference (MC13) is set to take place in Abu Dhabi, United Arab Emirates (UAE), in February 2024.