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With reference to the Appellate Body of the World Trade Organization, consider the following statements:
It acts as a supreme institution for the settlement of international trade disputes whose decisions are binding on members.
  • It is composed of seven members who are appointed by the WTO members by consensus.
    Which of the statements given above is/are correct?
    • a)
      1 only
    • b)
      2 only
    • c)
      Both 1 and 2
    • d)
      Neither 1 nor 2
    Correct answer is option 'C'. Can you explain this answer?
    Verified Answer
    With reference to the Appellate Body of the World Trade Organization,...
    1. WTO Dispute Settlement System
      1. For proper enforcement of trade rules, a binding, two-stage dispute settlement system was established at the World Trade Organization in the 1990s. The Appellate Body is the scaffolding of the dispute settlement system, with seven standing members.
      2. In the first stage for adjudicating trade disputes, a panel would decide cases brought before it by the members. If one of the parties to the dispute does not accept the report of the panel, it can appeal to the legal findings of the panel before the Appellate Body. Each appeal is heard by a three-member chamber, which can uphold, modify, or reverse the panel's legal findings and conclusions.
      3. World Trade Organization’s Appellate Body acts as a supreme court for international trade.
      4. As part of the second-stage of adjudication, the Appellate Body can uphold, modify or reverse the legal findings and conclusions of a panel. Therefore, the Appellate Body’s decisions are final and adopted within 30 days by the dispute settlement body. Sanctions can be imposed on a member in case of its failure to comply with the Appellate Body’s rulings. Hence, statement 1 is correct.
    2. The Appellate Body
      1. The Appellate Body is composed of seven members who are appointed by consensus by the Dispute Settlement Body (DSB) (composed of all WTO members) to serve for four-year terms i.e. a decision is taken if no member formally objects. Hence, statement 2 is correct.
      2. Each person may be reappointed for another four-year term. Terms are staggered, ensuring that not all Members begin and complete their terms at the same time.
      3. The US recently vetoed on the appointment of new Appellate Body members on the pretext that various dispute settlements were biased against the USA.
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    With reference to the Appellate Body of the World Trade Organization, consider the following statements: It acts as a supreme institution for the settlement of international trade disputes whose decisions are binding on members. It is composed of seven members who are appointed by the WTO members by consensus. Which of the statements given above is/are correct?a) 1 onlyb) 2 onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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    With reference to the Appellate Body of the World Trade Organization, consider the following statements: It acts as a supreme institution for the settlement of international trade disputes whose decisions are binding on members. It is composed of seven members who are appointed by the WTO members by consensus. Which of the statements given above is/are correct?a) 1 onlyb) 2 onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to the Appellate Body of the World Trade Organization, consider the following statements: It acts as a supreme institution for the settlement of international trade disputes whose decisions are binding on members. It is composed of seven members who are appointed by the WTO members by consensus. Which of the statements given above is/are correct?a) 1 onlyb) 2 onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Appellate Body of the World Trade Organization, consider the following statements: It acts as a supreme institution for the settlement of international trade disputes whose decisions are binding on members. It is composed of seven members who are appointed by the WTO members by consensus. Which of the statements given above is/are correct?a) 1 onlyb) 2 onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
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