UK Embraces New WTO Dispute Resolution Mechanism Amid Global Trade Tensions

The UK has joined an alternative mechanism for resolving trade disputes as the WTO's appeals body remains inactive. This move aims to bolster British business amidst economic turbulence and protectionism. The UK joins the MPIA, highlighting its dedication to rules-based international trade.

The United Kingdom has announced its decision to join an alternate mechanism for trade dispute resolution, the Multi-Party Interim Appeal Arbitration Arrangement (MPIA), as confirmed in a statement released on Wednesday. This strategic move comes in response to the World Trade Organization's (WTO) appeals body remaining inactive since 2019.

Following actions by former U.S. President Donald Trump, who blocked new appointments to the WTO's top appeals court, the dispute settlement system has functioned only partially. The U.S. alleged the WTO Appellate Body was overstepping its bounds in trade disagreements. In this atmosphere, the UK aims to reinforce its trade strategy amid economic turbulence and rising protectionism.

By joining the MPIA, the UK aligns with 56 other members, including the European Union, Canada, and Brazil, showcasing its commitment to an effective rules-based trading system. This development follows a recent agreement between UK Prime Minister Keir Starmer and Donald Trump on lowering tariffs, which has helped the UK avoid elevated tariffs on steel and aluminum exports to the U.S.

(With inputs from agencies.)