The role of the appellate mechanism in ensuring the consistency and predictability of the WTO law

Abstract

Appellate Body (AB) is the backbone of the WTO's two-tier dispute settlement process. With the authority to review, uphold, modify or reverse the Panel's report, AB plays an important role in ensuring the consistency and predictability of the WTO law. Although the AB has been highly regarded for its efficiency, it is still subject to criticisms about its undue prolongation of dispute settlement or default judgment in excess of jurisdiction. The United States for years has blocked appointments and reappointments of the AB's members, leading to its paralysis by the end of 2019. This situation posed a great challenge for the multilateral trade system in terms of the stability and predictability of the WTO legal system as well as an effective dispute resolution for the multilateral trading system. This paper focuses on analyzing the role of the AB and current challenges, and propose possible solutions to ensure consistency in the interpretation and application of WTO law.