Despite growing consensus on the need to update the trade rules and strengthen the World Trade Organization, there is little agreement on which reforms are necessary. While some place priority on resolving the impasse over appointments to the Appellate Body, other reforms to the dispute settlement mechanism may be more important to respond to the challenges facing judicialized dispute settlement of trade disputes in the WTO. The changing balance of economic power, ageing trade rules and a backlash against globalization make it difficult to achieve legitimate outcomes through win-lose adjudication. Increasing demand, a potential for a chill on ongoing negotiations and an imbalance between the political and adjudicative functions of the WTO exacerbate these challenges. Resolving the impasse over the Appellate Body will not, on its own, resolve the more profound legitimacy crisis facing the trading system. Members should instead focus on pursuing broader improvements to the dispute settlement mechanism to ensure that it remains fit-for-purpose in the service of trade cooperation in a turbulent multipolar world
