On March 27，China, the EU and more than a dozen other WTO members jointly issued a ministerial statement announcing their decision to establish a multi-party interim appeal arbitration arrangement in the WTO. The arrangement will use the arbitration procedures set out in Article 25 of the Understanding on Rules and Procedures Governing the Settlement of Disputes to hear dispute cases filed by the participants during the suspension of the Appellate Body. At present, the parties have agreed on the text of the multi-party interim appeal arbitration arrangement.

The dispute settlement system is one of the core functions of the WTO and plays an important role in maintaining the stability and predictability of the multilateral trading system. The Appellate Body is a permanent body specialized in hearing appeal cases, and is an important part of the dispute settlement system. As some WTO members continue to obstruct the selection of members of the Appellate Body, the Appellate Body has been shut down since December 11, 2019, which has hit hard the multilateral trading system.

At present, the establishment of a multi-party interim appeal arbitration arrangement is conducive to maintaining the operation of the WTO dispute settlement system and the rules-based multilateral trading system, showing the confidence and support of the international community in the multilateral trading system. China will work with other participants to inform the WTO of the arrangement soon, promote its formal implementation as soon as possible, and welcome other WTO members to participate.

The multi-party interim appeal arbitration arrangement is an interim measure during the suspension of the appellate body. Its ultimate goal is to start the selection of the members of the Appellate Body and restore its normal operation. The participants promised in the ministerial statement that they will continue to break the deadlock in the Appellate Body member selection firmly and actively and take it as a priority. China, together with other WTO members, will continue to promote the normal operation of the Appellate Body and maintain a rules-based multilateral trading system.