Talks to reform the World Trade Organization’s dispute settlement system face an uncertain future after members failed to wrap up an agreement before President-elect Donald Trump takes office next month.
The setback at this week’s General Council meeting had been expected for months, but Trump’s return to the White House further complicates the talks.
The first Trump administration effectively hamstrung the WTO’s dispute settlement system by blocking the appointment of new judges to the organization’s Appellate Body. That left the body unable to issue decisions after two of the three remaining judges’ terms expired — five years ago this month.
The Biden administration continued the blockade on new judges but agreed in June 2022 to launch negotiations aimed at reforming the dispute settlement system. WTO members pledged to work toward creating a “fully and well-functioning dispute settlement system accessible to all members by 2024.” That artful language left unclear whether the deadline was at the beginning or end of the year.
