Abstract:
WTO Dispute Settlement Mechanism (DSM) is based on treaties, so the principle of good faith in the preamble of the Vienna Convention on the Law of Treaties(VCLT) shall be applied. The crisis of Appellate Body(AB) cannot be attributed to the so-called problems of the AB, but rather to the obstructive behavior of the United States. The United States has destroyed the WTO appellate system by blocking the selection of AB members, apparently abusing its rights. The DSM has been broken for nearly 4 years and its future remains vague. In this particular situation, a more appropriate approach could be by voting according to the Agreement Establishing the WTO or collective action to select the AB members, and the clauses on fundamental change of circumstances and inter se agreements in the VCLT could provide a legal basis for this initiative.
Keyword:
WTO Dispute Settlement Mechanism; Appellate Body Crisis; Treaty Law; Good Faith; Abuse of Rights