Japan has decided to join the Multi-Party Interim Appeal Arbitration Arrangement (MPIA)-an alternative trade-dispute resolution mechanism initiated by the EU, saying the World Trade Organization’s appellate body has “ceased functioning.”
About Multi-Party Interim Appeal Arbitration Arrangement (MPIA)
- In order to maintain the efficacy of the rules-based trading system and for members to continue to have access to an independent appeal process for dispute settlement, 16 WTO members set up a separate appeal system for trade disputes in March 2020.
- MPIA is an alternative system for resolving WTO disputes that are appealed by a Member in the absence of a functioning and staffed WTO Appellate Body.
- WTO members can resort to the use of the MPIA under Article 25 of the WTO Dispute Settlement Understanding, as an alternative mechanism for dispute settlement.
- The MPIA already has 52 member countries and regions, including Australia, Brazil, Canada and China, as well as the EU. India is not a member. The WTO issued its first ruling based on the alternative system in December last year in a case over French fries between Colombia and the European Union, both parties to the arrangement.
- The MPIA embodies the WTO appellate review rules and in a dispute between members, it will supersede the previous appeal processes and also apply to future disputes between members.
- Any member can join the MPIA by notifying the Dispute Settlement Body and a range of members have done so.
