Global dispute settlement, India and appellate review

Context:

The recently concluded G-20 Declaration, among its many commitments, reiterated the need to pursue reform of the World Trade Organization (WTO) to improve all its functions and conduct proactive discussions “to ensure a fully and well-functioning dispute settlement system accessible to all members by 2024”.

WTO Dispute Settlement and its Challenges

• WTO's Dysfunction: The WTO's dispute settlement system has faced issues since 2019 due to the United States blocking appellate body appointments.
• Significance of Dispute Settlement: The system is vital for ensuring coherent rulings, predictability, and confidence in the WTO's dispute resolution process.
• Future Uncertainty: The G-20 Declaration expresses support, but the U.S. opposes an appellate review, raising questions about the system's future.

Need for Appellate Review in Investment Law

• ISDS in International Investment Law: Investor-state-dispute settlement (ISDS) plays a crucial role, but it lacks an appellate review mechanism.
• Challenges in ISDS: ISDS lacks consistency and coherence, leading to instability and unpredictability in international investment law.
• Benefits of Appellate Review: Establishing an appellate mechanism can rectify legal errors, harmonize interpretations, and bring stability and certainty to ISDS.

India's Role in Promoting Appellate Review

• India's Stance: India's model BIT indicates support for appellate review in ISDS, aligning with concerns about ISDS inconsistency.
• EU Negotiations: India must take a stand on appellate review during ongoing investment treaty talks with the EU, which advocates for it.
• Promoting Global Order: India's commitment to a rule-based global order should drive support for appellate review in ISDS and the WTO dispute settlement system.