The Appellate Body issued on 3 July 2015 its Annual Report for 2014. The Report includes information about appeals filed by WTO members, the key findings of reports circulated in 2014, the composition of the Appellate Body, the participation of WTO members in appeals, dispute settlement statistics, and activities undertaken by the Appellate Body and its Secretariat during this period.

In January 2014, the Appellate Body welcomed a new cycle in the Mayan Calendar, fully aware of the challenges ahead. David Unterhalter completed his second term in December 2013, and the Appellate Body was left to function with only six Members for most of 2014. It was not until September that the Appellate Body reverted to normality with the appointment of Mr Shree Baboo Chekitan Servansing. Shree has already made his presence felt in the Appellate Body, and his skills and knowledge continue to make our institution stronger and wiser.

By the end of 2014, the Dispute Settlement Body had received nearly 500 requests for consultations. In its first 16 years, the DSB has handled disputes spanning over US$1 trillion in trade flows. Two thirds of WTO Members have participated in dispute settlement in one way or another. These numbers are quite telling. Despite the attention given to emerging regional trade initiatives, our dispute settlement system remains to be the preferred and perhaps the only forum where international trade disputes are adjudicated effectively and efficiently.

2014 saw the highest number of total active disputes at the panel and appeal stages. Thirteen panel reports were appealed in 2014, and the Appellate Body issued eight reports concerning five matters in: EC – Seal Products; US – Countervailing and Anti-Dumping Measures (China); China – Rare Earths; US – Carbon Steel (India); and US – Countervailing Measures (China). A ninth Appellate Body report, in Argentina – Import Measures, was circulated in January 2015.

The robust level of appeal activity in 2014 confirms the conclusions reached in the Appellate Body’s 2013 Workload Paper. As indicated in the 2013 Workload Paper, appeals have increased not only in rate, but also in complexity, to what was witnessed in the first decade of the WTO dispute settlement mechanism. Disputes now commonly involve multiple parties advancing a variety of claims, increased third-party participation, and greater procedural complexity. Looking at it from a broader context, 2014 has been a “trendsetting year” in terms of complexity of appeals and the number of panel reports appealed. On average, 68% of circulated panel reports are appealed. In 2014, that figure rose to 87%.

Be that as it may, 2014 is just the tip of the iceberg. As the 2013 Workload Paper projected, the upward trend of dispute settlement activity will continue for the next several years. On top of the current heavy workload, we anticipate appeals in the aircraft and tobacco cases, which are on the horizon.

All these facts have increased the burden that is placed on the dispute settlement system, and on the Appellate Body in particular, to produce high-quality reports. This significant strain on the system and its limited resources require effective and innovative solutions. The Appellate Body, together with the WTO Administration, continue to address budgetary and human resource issues to meet the challenges posed by the current workload. Nonetheless, there are structural aspects to these concerns that only the WTO Membership can address.

We interpret the upsurge in the use of dispute settlement, and in appeals specifically, as a sign of confidence by the WTO Membership in the dispute settlement system. We thus consider it our mission to continue delivering high-quality Appellate Body reports swiftly, regardless of the number and complexity of appeals filed.

For the past 20 years, the Appellate Body has served as a model for treaty interpretation and adjudication. Regardless of one’s agreement with our findings, it is uncontested that we adjudicate disputes on their merits and in a methodical manner. The WTO dispute settlement system is among the most active, complex, efficient, and sophisticated international dispute settlement systems. The quality of our reports is our trademark, and it is non-negotiable. We stand ready with the WTO Membership and the WTO Administration to address coming challenges and make the system work better than ever.