The EU, China and 15 other members of the World Trade Organization today announced they are setting up a temporary dispute settlement body to resolve international trade conflicts.

The move comes in direct response to the undermining of the WTO's dispute body by the United States, which refused to appoint members of an arbitration panel.

"This statement testifies to the high importance that the EU and the participating WTO members attach to retaining a two-step dispute settlement process in WTO trade matters," said Phil Hogan, the European Commissioner for trade. "The multiparty appeal arbitration arrangement will guarantee that the participating WTO members continue to have access to a binding, impartial and high-quality dispute settlement system among them."