Ensuring the Sustainability of Dispute Settlement Mechanism in Light of the Current Appellate Body Crisis

ABSTRACT The mechanism of resolving disputes in international trade has undergone a drastic change in its working structure, transitioning from a single‐tier system established in 1947 under GATT, that is, “General Agreement on Tariff & Trade,” to a dual‐tiered structure established by its successor WTO (World Trade Organization) in 1995. The mechanism of Dispute Settlement WTO's Appellate Body is under a crisis, which for long was regarded as a “crown jewel” of the global trading system owing to the act of impeding appointments to the Appellate Body since 2019 by the US. As a result, the World Trade Organization's entire dispute resolution procedure has become unstable, which has created a “Legal Void” eroding belief in the mechanism. This crisis has put the future of the WTO's dispute resolution process in question and uncertain. This study's primary goal is to look into the current predicament facing the Appellate Body by analyzing its procedural and legal framework, assessing its overall impact, and reviewing the responses of WTO member countries. Additionally, the study aims to explore potential legal solutions by analyzing proposed reforms and strategies to reestablish the Appellate Body's functionality, ensuring the viability of global trade. The methodology used by the authors is doctrinal research, which entails a thorough examination of the legal framework that governs the dispute resolution mechanism of WTO, case studies, a review of its historical context, and an evaluation of the future in light of the outcomes of the 13th WTO Ministerial Conference (MC13) 2024.