Roberto Azevedo, director-general of the World Trade Organization (WTO), announced on Monday that he would launch more intensive, high-level consultations on how to resolve the long-standing impasse over the appointment of Appellate Body members.

Azevedo's intervention came as the WTO's dispute settlement body, particularly its Appellate Body, is facing a potential crisis. At least three judges are needed to hear an appeal. Since the terms of two of the three remaining judges will expire on Dec. 10 and the United States has blocked the nomination of new judges, the Appellate Body will be unable to hear new disputes after that date.

Addressing the WTO's General Council, the organization's highest level decision making body in Geneva, Azevedo said "a well-functioning, impartial and binding dispute settlement system is a core pillar of the WTO system."

"Rules-based dispute resolution prevents trade conflicts from ending up in escalating tit-for-tat retaliation -- which becomes difficult to stop once it starts -- or becoming intractable political quagmires," he noted.

"The paralysis of the Appellate Body does not mean that rules-based dispute settlement has stopped at the WTO," Azevedo said, adding "members will continue to resolve WTO disputes through consultations, panels and other means envisaged in the WTO agreements such as arbitration."

Nonetheless, he said, finding a permanent solution for the Appellate Body "must be our priority".

He suggested launching consultations at "heads of delegation" level on resolving the impasse, which "would focus on whether members are discussing all the elements that need to be addressed in finding a solution and what basic concepts members need to agree on so as to make progress."

Earlier in the meeting, a draft decision intended to resolve differences on the urgent matter of the functioning of the Appellate Body was rejected by the United States.

Many WTO members expressed their support for the draft decision and underlined their deep concern over the paralysis of the Appellate Body.

The draft decision was the outcome of an informal process launched last January by the General Council chair.

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