New Delhi, Feb 29 (KNN) India urged for the reinstatement of the World Trade Organisation's (WTO) appellate body during the ongoing 13th Ministerial Conference (MC13) in Abu Dhabi, emphasising it as a crucial step in any reform effort within the multilateral trade organisation, on Wednesday.

The appellate body has been inactive for over four years due to the US's refusal to approve its members, significantly limiting the WTO's dispute resolution mechanism, reported Mint.

In addition to advocating for the revival of the appellate body, India emphasised the importance of formalising ongoing informal discussions among WTO members regarding dispute settlement reforms. 

These discussions have faced challenges due to the US blocking appointments and reappointments since December 2019, leading to a reduction in the appellate body's membership from seven to four.

“India reiterated its long-standing position that a credible and reliable WTO DS system is the bedrock of an equitable, effective, secure and predictable multilateral trading system. India emphasised that the outcome of any reform process should provide for the restoration of the appellate body, which remains a top-most priority for the country,” the commerce ministry added.

Biswajit Dhar, a professor at Jawaharlal Nehru University, highlighted the critical role of the appellate body in ensuring the effectiveness of the rules-based multilateral trading system, emphasising that the WTO's functionality is compromised without it.

Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), noted that a paralysed appellate body serves US interests by preventing challenges to programs like the Inflation Reduction Act. 

He also highlighted how other nations are capitalising on the situation by implementing WTO-incompatible domestic subsidies to promote manufacturing.

India expressed concerns about the format and pace of the informal dispute resolution reform discussions, particularly regarding their accessibility for developing countries. As a solution, India proposed formalising and multilateralising the reform process to rectify procedural and substantive deficiencies.

India proposed a three-point action plan for dispute settlement reform, emphasising the transition of discussions to WTO formal bodies, ensuring member-driven processes, and prioritising the restoration of the appellate body.

Meanwhile, WTO Director-General Ngozi Okonjo-Iweala highlighted the adverse impact of shipping disruptions in the Red Sea region on global trade, with forecasts indicating a decrease in merchandise trade volume growth for 2023. 

However, projections for 2024 remain unchanged, demonstrating the resilience of global trade despite disruptions and political pressures.

(KNN Bureau)