The current U.S. Administration refuses to approve new candidates to be appointed to the World Trade Association (WTO), Appeals Arbitration Board, based on allegations of bias in past decisions. Accordingly the World Trade Organization has established a Multiparty Interim Appeal Arbitration Board. Participants in the initiative comprise 45 nations including the EU as a group in addition to Australia, Brazil, Canada, China, New Zealand among others in Asia and Latin America.
The EU Commissioner for Trade stated "this is a stop-gap measure to reflect the temporary paralysis of the WTO appeal function for trade disputes. This agreement bears testimony to the conviction held by the EU and many other member countries of the WTO that in times of crisis working together is a productive option.
The Multiparty Interim Appeal Arbitration Arrangement will become active within weeks following agreement on procedures.
This action by the WTO effectively sidesteps the U.S. and demonstrates the decline in power of the World's largest economy to influence international trade policy and represents both isolationism and a failure in diplomacy.