The Multi-party Interim Appeal Arbitration Arrangement: An Update

Abstract

The World Trade Organization’s Appellate Body (AB) continues to face an existential and operational crisis. Since 2017, the United States has blocked the selection of replacements for retiring AB members. As a result, the Appellate Body no longer has any active members and, therefore, cannot function. In March 2020, a group of 16 WTO members, including the European Union, promoted an initiative to establish a ‘multi-party interim appeal arrangement’ (MPIA), as an alternative to AB proceedings pending a resolution of the AB impasse. The arrangement is intended to allow disputes to be resolved finally by an impartial adjudicating body and to preserve a two-tier WTO dispute settlement system, until the Appellate Body resumes its functions. This Article provides a review of the structure and provisions of the MPIA and an update on how it has worked in practice. To date, no WTO dispute has gone through the MPIA process. However, in two recent disputes, Türkiye, which is not an MPIA party, and the European Union entered into agreements on appeals using a process very similar to the MPIA. One of those disputes has proceeded to the appeal stage under this arrangement. This note also provides the review of the differences between the MPIA and the Türkiye-EU mechanism. The World Trade Organization's disputes, the Dispute Settlement Body, Appellate Body Members, Multi-party interim appeal arrangement, MPIA, structure, appeal arbitration procedure, arbitrators, MPIA arbitrator, outgoing disputes, the first case to use appeal, Article 25 Arbitration, Türkiye-EU appeal arbitration agreement, WTO reform, MC12 outcome.