No. 90: The MPIA: A Mere Interim Solution or the Pathway to Fixing the WTO?

Details

Author(s):
  • Marie Van Luchene
Publish Date:
September 20, 2022
Publication Title:
TTLF Working Papers
Publisher:
Stanford Law School
Format:
Working Paper
Citation(s):
  • Marie Van Luchene, The MPIA: A Mere Interim Solution or the Pathway to Fixing the WTO?, TTLF Working Papers No. 90, Stanford-Vienna Transatlantic Technology Law Forum (2022).
Related Organization(s):

Abstract

On 10 December 2019, due to the United States, which for months blocked appointments of members to the Appellate Body, the World Trade Organization’s AB fell into a state of paralysis. From that day on, the AB no longer had the required quorum to make appeal decisions. Today, the WTO’s dispute settlement system can still work up to the panel stage but as soon as an appeal is filed against a panel report, meaning at the non-operative AB, the appeal ends up in limbo and a solution to the trade dispute remains out of sight. The EU pushed forward first, in cooperation with Canada, an interim solution, specifically the Multi-Party Interim Appeal Arrangement, which will be applied as long as the AB remains inoperative. The MPIA, which now includes 52 WTO Members, is based on Article 25 of the DSU and provides for a reflection of key features of arbitration under the WTO regime. At the same time, the MPIA present some new ideas that came up during the DSB discussions to enhance and innovate the operation of the AB, for example through organizational measures and substantive remedies. How the MPIA performs in practice is unclear so far since there are no fully-fledged practical examples available to date. The MPIA’s advantages among others include the fact that it retained the concept of a two-stage dispute settlement system and it tackles some procedural issues raised by WTO Members over the last few years. However, at the same time, there are some adverse aspects such as the few participating members and its not binding legal character.