Japan joins MPIA

• Japan has become the latest member to join Multi-Party Interim Appeal Arbitration Arrangement (MPIA).

ABOUT MPIA

• MPIA (formed in 2020) is an alternative system for resolving WTO disputes that are appealed by a Member in the absence of a functioning WTO Appellate Body.
• WTO members can resort to MPIA under Article 25 of WTO Dispute Settlement Understanding.
• Any member can join MPIA (India not a member yet) by notifying the Dispute Settlement Body (composed of representatives of all WTO Members).
• In a dispute between members, MPIA will supersede the previous appeal processes and also apply to future disputes between members.
• WTO’s dispute settlement process functioning is impacted since 2019 in the backdrop of USA blocking appointments to Appellate Body.
• There are two main ways to settle a dispute once a complaint has been filed in WTO:
  1. Parties find a mutually agreed solution, particularly during the phase of bilateral consultations.
  2. Through adjudication, including the subsequent implementation of the panel and Appellate Body reports.
• There are three main stages to WTO’s dispute settlement process:
  1. consultations between the parties;
  2. adjudication by panels and, if applicable, by Appellate Body; and
  3. implementation of the ruling.