The World Trade Organisation (WTO) is facing an unprecedented crisis as one of its main bodies will cease to function from Wednesday.

Global commerce faces the risk of descending into chaos after the US blocked the appointment of judges to the Appellate Body of the WTO that arbitrates on international trade disputes.

The tribunal, sometimes dubbed the supreme court of world trade, will be left with only one judge when the terms of the other two expire on 10 December. The seven-member appeals panel needs a minimum of three judges to issue rulings.

The Trump administration obstructed the recruitment of new judges after having accused the court of serious overreach and breaching US interests.

In a statement on Monday, WTO director general Roberto Azevedo admitted the chances of breaking the deadlock before midnight on Tuesday looked slim.

However, he said the body would initiate "more intensive, high-level consultations on how to resolve the longstanding impasse."

He added: "We cannot abandon what must be our priority, namely finding a permanent solution for the Appellate Body."

Azevedo, a Brazilian national, said the consultations would happen at the "heads of delegation" level but did not provide a timeline.

US ambassador to the WTO, Dennis Shea, said Washington is yet to back the proposal of filling the Appellate Body with the required number of judges.

The US is the only country refusing to start the selection process. At the end of November, more than 100 member states had backed the proposal.

One specific grievance the US has relates to the issue of dumping – the practice of exporting goods to another country at a price below that used at home.

There are seven cases pending at the WTO against US President Donald Trump's decision last year to hit foreign steel and aluminium with import taxes.

The appellate court's demise now threatens to put international trade under significant strain.

The WTO's lower court, the dispute settlement body, can hear complaints but the verdict will remain in limbo since the losing side will not have the option to lodge an appeal with the higher court.

WTO spokesman Keith Rockwell said: "It's a serious crisis. When this is going to be resolved, how exactly, I don't know."

Rockwell added that both the EU and the US have differing legal and philosophical perspectives on the desired powers of the appeals panel, which would be challenging to bridge.

"Hopefully through some intensive consultations, a little bit more political injection into this process, we can find some kind of solution," he said.