The Trump administration has created significant dysfunction within the World Trade Organization by systematically blocking appointments to the Appellate Body. The US has put the WTO Appellate Body into crisis mode, having reduced membership from seven to four, with further decline expected.

The structural problem is acute: when the body shrinks to three members by October 2018, the mandatory three-member rotation requirement becomes operationally impossible. Additional vacancies in December 2019 would leave only a single Chinese appointee staffing the entire body.

The Underlying Disputes

The administration seeks latitude to adopt only partial decisions and delete report sections through bilateral agreement, shifting power away from strict multilateralism toward managed bilateral arrangements between disputants.

This confrontation threatens the organization’s fundamental viability. Without prompt resolution, the WTO will cease to functionally exist as we know it, potentially ending prospects for multilateral trade governance in the post-Trump era.

The commentary reflects broader administration strategy favoring bilateral treaty arrangements outside the WTO framework.