CAFTA welcomes the move as an interim step to fixing the WTO trade dispute impasse.Ottawa—An agreement by 17 members of the World Trade Organization to establish an interim trade dispute arbitration process while working to repair its broken Appellate Body has been welcomed by the Canadian Agri-Food Trade Association (CAFTA).The agreement was reached by Canada and 16 other members of the WTO reform group during the World Economic Forum meeting in Davos, Switzerland. It will enable any WTO member to take a trade dispute to the interim mechanism resolution.The arrangement has its roots in work by Canada, which hosted the first meeting on WTO reform in 2018 in light of the impasse at the Appellate Body created by the United States. Canada and the European Union agreed last July on the interim arbitration proposal.CAFTA President Dan Darling said while the interim mechanism is a positive step, “finding a permanent resolution to the current blockage of the Appellate Body should remain the priority. As Canada's agri-food exports grow to record levels, this announcement is a reassurance there's support for global trade continuing to be based on rules.“We believe the WTO must remain at the core of a multilateral trading system that provides stability and predictability for all of its 164 members,” he said. “Much work needs to be done to achieve that goal.“That is why we have supported efforts to modernize and reform the WTO and offered specific reform recommendations as part of our 2020 priorities. The focus must be on modernizing the WTO so it can continue to be a successful underpinning to stable trade.”Ottawa lawyer Valerie Hughes, an Ottawa trade lawyer, said the supporters of the interim mechanism are big users of the WTO dispute resolution system. However, major WTO members haven't endorsed it including Argentina, India, Japan, Russia, and the US.“But it suggests the U.S. might be losing some leverage in their efforts to kill the Appellate Body,” she said.CAFTA said it will work with International Trade Minister Maryam Ng who took over as chair of the Ottawa Group on WTO Reform when former minister Jim Carr dropped out of cabinet after the October election to fight cancer. The reform group is aiming its efforts at the WTO Ministerial Conference in June. Back in July 2019, Canada and the European Union developed the interim appeal mechanism as a replacement for the Appellate Body until it is reformed.Ng said a rules-based international trading system is essential to the success of Canadian exporters and the WTO has helped in developed binding rules for global trade and in reducing tariffs, which creates predictable market conditions for businesses to be able to grow and succeed.The Appellate Body has been blocked from its international trade dispute referee function by the U.S.'s ongoing refusal to reappoint or select new members. The U.S. feels the WTO don't always favour its interests.Canada and its WTO reform allies want the WTO to become better at dealing with market-distorting measures such as industrial subsidies and global excess capacity in various sectors.Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.