Context
The recently finished G-20 Declaration included a number of pledges, one of which was a reaffirmation of the need for WTO reform to improve all of its functions and for aggressive discussions "to ensure a fully and well-functioning dispute settlement system accessible to all members by 2024."
 
The Challenges of WTO Dispute Resolution 
·         WTO Dysfunction: The US has been blocking the nomination of appellate bodies since 2019, which has led to issues with the WTO's dispute resolution process.
·         The system is necessary to ensure fair decisions, predictability, and public confidence in the WTO's dispute resolution process.
·         Future Concerns: The G-20 Declaration supports the system, but the U.S.'s objection to an appellate review raises concerns about the system's long-term survival.
 
Appellate Review is Required in Investment Law 
·         Investor-state dispute settlement (ISDS), a crucial element of international investment law, is missing an appeals procedure, hence appellate review is necessary in investment law.
·         The absence of standardisation and coherence in international investment law renders it unstable and unpredictable, which is one of the challenges ISDS faces.
·          Benefits of appellate review: An appeals procedure could give ISDS stability and predictability, remove legal errors, and unify interpretations.
 
India's contribution to encouraging appellate review 
·         India's Position: According to its model BIT, India favours appellate review under ISDS, which is consistent with concerns over ISDS inconsistency.
·         India must take a stance on appellate review amid ongoing investment treaty negotiations with the EU, which favours it.
·         Given India's commitment to a world of rules, support for appellate review in ISDS and the WTO dispute settlement system should increase.
 
LTX Mains Question:
Q. What recent issues involving WTO dispute resolution exist? Discuss the WTO regulations that hurt developing countries like India.