Trade Minister Simon Birmingham has warned against the World Trade Organisation being turned into a "might is right" body, as the US vetoes key appointments and shuts down its ability to function.

Australia is embroiled in four trade disputes at the WTO. At least two – with Canada and India – could be subject to delays as the US continues to block new appeals judges. As of December 10, the WTO's Appellate Body is down to only one judge; three are needed to adjudicate appeals.

Trade Minister Simon Birmingham: "Australia is disappointed that the Appellate Body is now unable to function." Credit:Alex Ellinghausen

In his first comments on the stalemate, Senator Birmingham said a fully functioning WTO dispute system was key to enforcing global trade law and protecting smaller nations.

"Australia is disappointed that the Appellate Body is now unable to function," Senator Birmingham told The Sydney Morning Herald and The Age. "The eroding of the dispute-settlement function of the WTO undermines the effectiveness of the trading rules that we and many other nations rely upon and takes us closer to a 'might is right' system without agreed enforceable rules."