The establishment of a two-tier dispute settlement system (DSS) at the World Trade Organization (WTO) has significantly judicialized international trade relations. However, this process is currently hindered by the Appellate Body’s (AB’s) dysfunctionality. In the absence of the AB, the Multi-Party Interim Arbitration (MPIA) Arrangement is partially bridging the gap. This MPIA initiative aims to restore the WTO’s two-tier DSS and has gained traction, garnering support from fifty-seven countries. However, India, a crucial developing-country member, has not joined the MPIA, despite its ongoing calls for the restoration of the two-tier dispute resolution system at the WTO. Most of India’s concerns regarding the MPIA do not hold up under scrutiny. Contrary to India’s argument, joining the MPIA would not diminish its position in advocating for the restoration of the AB. Furthermore, although the United States – India’s key trading partner – is not a member of the MPIA, India can still invoke the MPIA in disputes with other significant players, such as the European Union (EU) and Japan. As the multilateral trading system faces increasing challenges, countries like India need to build alliances, develop innovative solutions, and demonstrate unflinching commitment to trade multilateralism through actions, not just words. Supporting the MPIA is one such step toward restoring the WTO’s judicial function and should be embraced by India.
Journal of World Trade