Selected as a committee member for the first malfunction in WTO dispute resolution

WTO Conflict Settled for First Malfunction Selected by Commissioner Declined on 9 December at 5:05

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The WTO = World Trade Organization is expected to fall into malfunction for the first time since the establishment of the trade dispute on the 10th. The opposition from the United States is that the conflict resolution committee cannot be appointed, so the confrontation between countries over trade is likely to become even more intense.

The WTO is a member of 164 countries and regions, including Japan, and is mainly responsible for resolving trade disputes.

If the conflict over trade cannot be resolved through discussions among member countries, it will first be heard by a subcommittee, which is the first instance, but if the conclusion is challenged, the higher committee, the Supreme Court, will Make a final decision.

The number of members who are judges of the senior committee is seven, but after the term of office expired, the vacancies were not filled, and the dispute resolution proceedings were continued with a minimum of three members.

However, two more terms will expire on the 10th, and there will be only one committee member, making it impossible to secure the necessary personnel.

As a result, for the first time since the establishment of WTO in 1995, the function of the senior committee is expected to cease.

This is because a new member cannot be elected because of opposition from the United States, which is dissatisfied with the decision of the senior committee to resolve the dispute. Member countries will discuss the response at the general board meeting starting on the 9th. I can't see it.

If WTO dispute settlement procedures become dysfunctional, there is concern that the conflict between countries over trade will become even more intense.

Potential impact on Japan

If the WTO = World Trade Organization dispute resolution procedure ceases to function as the second committee, it may have an impact on the hearings involved in Japan.

Currently, the WTO Senior Committee has 13 hearings, one of which is related to Japan.

This is a complaint filed by Japan over the measures taken by the Indian government to raise the tariff rate on Japanese steel products. In November last year, Japan won an appeal in a subcommittee in the first instance of the WTO. As the Indian side appealed.

In the future, if the function of the senior committee ceases, the hearing may be affected. However, since the customs measures in India have already been terminated, it will not have a substantial impact on Japanese companies.

On the other hand, the Japanese government also submitted a proposal for reform, such as seeking a mechanism for dialogue between the higher committee and member countries in April, in cooperation with Australia and Chile, in view of the current system of the WTO. It is.

Apart from Japan's proposal, the EU = European Union and China have also submitted WTO reform proposals, but the EU is in sharp opposition with the United States in the direction of reform, and there is no clear path to finalization. .