Ghathwan Ali Hussein

The dispute settlement mechanism of the World Trade Organization (WTO) represents one of the most sophisticated legal frameworks for resolving international trade conflicts. Nonetheless, the dispute settlement mechanism of the WTO encountered its most severe crisis in 2019 since its inception. Following the unresolved political disagreement by the United States, the Appellate Body, being the first-ever appellate review forum for international trade disputes, ceased to function in December 2019. This article shall comprise a detailed examination of this unprecedented and most severe crisis of the WTO, analysing its historical roots, immediate consequences, and potential pathways for reform. Methodologically, the research combines doctrinal legal analysis with empirical examination of dispute settlement trends since the dysfunction and/or paralysis of the Appellate Body. This study further reviews all 32 cases currently in appellate limbo, analyses the jurisprudence of the MPIA, and assesses the growing trend of forum shopping as members increasingly turn to alternative dispute resolution mechanisms outside the WTO framework. The article concludes by situating the Appellate Body’s crisis within broader debates about the future of multilateralism in an era of geopolitical tensions and economic nationalism. This study further highlights the importance of restoring a functional dispute settlement mechanism not only for the WTO's credibility but for the preservation of a legal framework to govern international trade.