[9][10][11] This action has been criticised by many countries, including China, Australia and Mexico, who in 2022 pushed for a proposal to restart the appointment of judges, which was once again blocked by the United States.
[13] Pursuant to the rules detailed in the DSU, member states can engage in consultations to resolve trade disputes pertaining to a "covered agreement" or, if unsuccessful, have a WTO panel hear the case.
[20] The panel, normally consisting of three members appointed ad hoc by the Secretariat, sits to receive written and oral submissions of the parties, on the basis of which it is expected to make findings and conclusions for presentation to the DSB.
The proceedings are confidential, and even when private parties are directly concerned, they are not permitted to attend or make submissions separate from those of the state in question.
[22] The final version of the panel's report is distributed first to the parties; two weeks later it is circulated to all the members of the WTO.
The Secretariat selects panelists, exercises financial control, writes an initial issues paper for adjudicators, provide economic expert advice, participate in internal deliberations and draft the actual ruling.
The Appellate Body has been met with much criticism, as it is said to have the potential to threaten the balance and exacerbate existing inequalities.
[30] According to a 2022 study, the creation of the Appellate Body and the manner of its evolution was largely unanticipated by WTO member states.
Within thirty days of the adoption of the report, the member concerned is to inform the DSB of its intentions in respect of implementation of the recommendations and rulings.
[33] If all else fails, two more possibilities are set out in the DSU: While such "retaliatory measures" are a strong mechanism when applied by economically powerful countries like the United States or the United Kingdom or organisations like the European Union, when applied by economically weak countries against stronger ones, they can often be ignored.
[37] Whether or not the complainant has taken a measure of retaliation, surveillance by the DSB is to continue, to see whether the recommendations of the panel or the Appellate Body have been implemented.
[43] As to substance, the DSU provides that the report of panels shall "explicitly indicate" how account has been taken of the "differential and more favorable treatment" provisions of the agreement under which the complaint is brought.
[9] The panel is supposed to have seven judges but the US has blocked all the replacements and thus has paralyzed the WTO dispute settlement mechanism.
[53][54] In March 2020, the European Union and 15 other WTO members agreed to a Multiparty Interim Appeal Arbitration Arrangement (MPIA).
[55][56] In an article published in the Journal of International Economics in 2017, WTO disputes filed by the United States between 1995 and 2014 were examined.