The importance of balance in World Trade Organisation tribunals – reflecting on the first WTO appellate decision by arbitration

21 April 2023

 

In the post-pandemic era, the World Trade Organisation (WTO) is reorienting its priorities by focusing more on using trade as a means to achieve broader goals of economic development and sustainability.   

In his recently published journal article, Associate Professor Weihuan Zhou argues that in pursuit of these goals the WTO must emphasise balance in their tribunals.  

‘Turkey – Certain Measures Concerning the Production, Importation and Marketing of Pharmaceutical Products’ published by the American Journal of International Law discusses the first appellate decision via arbitration under the WTO since the paralysis of the Appellate Body in December 2019.  

This case sets a precedent of WTO members using arbitration as an alternative appellate mechanism to maintain binding dispute resolution, providing hope for the continued effectiveness of the rules-based system in constraining trade-restrictive policies.  

Despite its significance, Associate Professor Zhou discusses the substantive deficiencies of this arbitral award concerning the proper balance between trade liberalization and regulatory autonomy for measures designed to achieve public health objectives. Ultimately, Associate Professor Zhou argues WTO tribunals must take a more balanced approach to ensure the dispute settlement system contributes to facilitating the modernization of trade rules in response to changing circumstances and priorities in relation to sustainability and development. 

 

This article is available here.   

Associate Professor Weihuan Zhou’s research may be found at SSRN, Twitter @WeihuanZhou, and LinkedIn