Exclusive-Reform proposals emerge to fix WTO by early 2024 - document

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By Emma Farge

GENEVA (Reuters) — World Trade Organization members have begun reviewing reform proposals designed to address U.S. concerns in what a key negotiator called the «last chance» to restore the trade watchdog's ability to settle trade disputes.

The draft proposals seen by Reuters represent what WTO delegates say is the most serious attempt so far to fix the broken dispute settlement system. It envisages such reforms as time limits on resolving disputes and a new way to allow countries to give feedback on rulings they disagree with.

However, it does not yet tackle the central question of whether its top court, known as the Appellate Body, will be revived — a move seen as critical to restoring faith in global trade rules.

The WTO's ability to settle multi-billion dollar trade disputes has been hobbled since December 2019 when the United States, calling for an overhaul, paralysed the Appellate Body by blocking judge appointments. Since then, countries can still file complaints to a lower body but if they do not accept its findings, the case ends up in legal limbo where some 30 unresolved appeals now sit.

Countries are in negotiations to fix it by next year and have submitted dozens of ideas, trade sources said.

«For many reasons, I'm convinced this is the last chance to restore the system,» Marco Molina, Deputy Permanent Representative of Guatemala to the WTO, who is coordinating the talks, told Reuters. «If we don't reach a proposal by the ministerial conference, there won't be another window of opportunity like the one we have today,» he added.

The next ministerial meeting is in Abu Dhabi in February 2024. Molina declined to give further details, citing the sensitivity of ongoing negotiations.

Earlier this week,