‘The Day the Music Died’: The Curious Case of Peru-Agricultural Products

Abstract

In a time when WTO-naysayers are predicting its obsolescence, the organization’s long-term survival largely depends on robust interpretation developed by its judiciary – particularly the Appellate Body (“AB”). It is now well recognized that conduct of sovereign states in good faith is essential for the proper functioning of any international legal order. WTO law is no different. Hence, it imperative for the AB to ensure that “good faith” is not merely a phrase in treaty text. The AB ruling in the recent case regarding Peru’s Price Range System (PRS) is significant in this regard. This paper seeks to discuss the implications that the case may have for the WTO’s future in terms of the so-called “extensive yet fragile” authority of its AB.