Stalled WTO Appeals Leave Trade Disputes Unresolved
Importers and exporters should plan for slower, less predictable outcomes in trade disputes with WTO members.
Updated on Nov. 1, 2026 in International Trade
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WTO Director-General Ngozi Okonjo-Iweala urged Indonesia to join the Multi-Party Interim Appeal Arbitration Arrangement (MPIA), a workaround for the stalled WTO dispute system, as the Appellate Body has been unable to hear appeals since 2019. Importers and exporters in Indonesia and other members face continued uncertainty over how trade disputes will be resolved.
Why it matters
The United States blocked new appointments to the Appellate Body, alleging it had overstepped its mandate, leaving members without a functioning final appeal step. The MPIA, established in 2020, offers an alternative binding appeal route among participating members, and its push to expand membership reflects concern that trade disputes are now being settled more slowly and less predictably.
The WTO recorded 55 new dispute cases as of October, while the MPIA's 72 participating members have settled just three cases since 2020. The share of global trade conducted under the most-favoured-nation principle has slipped to 72% from roughly 80%.
The players
World Trade Organization (WTO)
The Geneva-based body that sets global trade rules and adjudicates disputes between member governments, including the Appellate Body that hears appeals.
Ngozi Okonjo-Iweala
WTO Director-General and former Nigerian finance minister, leading the organization's efforts to restore a functioning dispute settlement system.
Multi-Party Interim Appeal Arbitration Arrangement (MPIA)
A 2020 interim appeal mechanism among 72 WTO members that substitutes binding arbitration for the stalled Appellate Body.
The details
Under WTO rules, a losing party in a dispute can appeal a panel ruling to the Appellate Body, whose decision is binding. With that body inoperative since 2019, an appeal can effectively stall indefinitely. The MPIA lets participating members agree to arbitrate appeals among themselves, creating a binding outcome for those who sign on but not for non-participants. Developing economies' share of global merchandise exports has risen from 38% in 2006 to nearly 50% in 2024, increasing their stake in how the system performs.
Timeline
2019: The Appellate Body became unable to hear appeals.
2020: The MPIA was established by members including China, Brazil and the EU.
October 2026: The WTO recorded 55 new dispute cases.
2026: Okonjo-Iweala made the call ahead of the Global Review of Aid for Trade in Geneva.
Market Landscape
The Appellate Body's paralysis since 2019, driven by U.S. blocking of appointments, has left the WTO's binding appeal function dependent on the MPIA, which covers 72 members. Developing economies' rising export share raises the stakes for whether that partial arrangement can scale.
Exporters and importers should factor in longer, less certain timelines for resolving trade disputes, since appeals may not reach a binding conclusion. Trade and legal teams should track whether their home jurisdiction or key trading partners join the MPIA, as membership determines whether an appeal can be binding.
The takeaway
Businesses with exposure to WTO-member markets should plan for slower dispute resolution and build contract terms that account for it. Monitor MPIA membership changes and the outcome of the Global Review of Aid for Trade in Geneva, as either could shift how trade disagreements are settled.
Further reading
For background on how trade disputes are handled across borders, see International Trade.
Source note: This article includes information reported by The Star.
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