China, EU and other WTO members decided to establish a Multi-party Interim Appeal Arbitration Arrangement

On March 27, China, the European Union and more than a dozen other WTO members jointly issued a ministerial statement deciding to establish a Multi-party Interim Appeal Arbitration Arrangement (MPIA) at the WTO. This arrangement will, pursuant to the arbitration procedures regulated in Article 25 of the WTO Dispute Settlement Understanding, hear dispute cases filed by the participating members during the suspension of the Appellate Body. At present, the participating members have reached agreement on the text of the MPIA.

The dispute settlement mechanism is one of the core functions of the WTO and plays an important role in maintaining the stability and predictability of the multilateral trading system. The Appellate Body is a permanent body specialized in hearing appeal cases, and is an important part of the dispute settlement mechanism. As individual WTO members continue to obstruct the Appellate Body appointments, the Appellate Body has been stalled since December 11, 2019, which has brought a heavy blow to the multilateral trading system.

At present, the establishment of a MPIA is conducive to maintaining the operation of the WTO dispute settlement mechanism and the rules-based multilateral trading system, showing the confidence and support of the international community in the multilateral trading system. China will work with other participating members to inform the WTO of the arrangement at an early date, promote its formal implementation as soon as possible, and welcome other WTO members to participate.

The MPIA is an interim measure during the suspension of the Appellate Body. The ultimate goal is to start the Appellate Body appointments and restore the normal operation of the Appellate Body. The participating members committed in the ministerial statement that they will continue to make a firm and active push to resolve the impasse of the Appellate Body appointments as a matter of priority. China, together with other WTO members, will continue to promote the early restoration of the normal operation of the Appellate Body, to maintain a rules-based multilateral trading system.