May 04, 2020 05:16 PM

New Global Trade Dispute Body Advances With China Backing, but Without U.S.

What’s new: China, the European Union and Australia have teamed up to back a new global trade dispute resolution mechanism, the Australian Financial review reported.

The system will work much like the World Trade Organization’s Appellate Body, which has been paralyzed since last year after the U.S. refused to allow any new judges to be appointed to the body.

The new Multi-Party Interim Appeal Arbitration Arrangement (MPIA) was formalized on Friday, and will have a pool of 10 judges chosen by the 20 WTO members involved in the initiative so far.

Why should people care: U.S. President Donald Trump’s administration started blocking new appointments last year over its belief that the Appellate Body was “overreaching its remit, and was creating new international trade law,” AFR reported.

By supporting the new initiative, China can show the world it supports multilateralism, analysts told AFR.

While the MPIA lacks Washington's support, “there's still a chance the new body may end up addressing U.S. concerns if it can operate in a way that avoids judicial activism,” they added.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full AFR article, click here.

Related: Recovery in Chinese Trade Far From Sight as Global Outlook Dims

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