Agriculture Assistant Secretary Segfredo Serrano Jr. said the panel should not include representatives from feuding parties to ensure the final decision will be impartial.
"The easiest way of resolving the matter is to let the sanitary and phytosanitary chair of the WTO name the panel members," said Serrano.
Earlier, the DA said that Canberra is now amenable to reopening talks to allow selected products to penetrate the Australian market.
Going to the WTO to press for a resolution to the long-drawn dispute will be undertaken alongside talks meant to thresh out the guidelines for insect risk analysis which Australia wants to impose on fresh bananas and pineapples coming from the Philippines.
Previously, Australia, despite the completion of an import risk analysis, insisted on imposing rigid phytosanitary standards such as decrowning pineapples before they leave Philippine ports. This was rejected by the Philippines since this will accelerate the deterioration of the fruit.
Australia is also insisting on the use of methyl bromide to fumigate the fruits but this practice has been banned in other countries that are heavy fruit exporters such as New Zealand.
Meanwhile, bananas are being denied entry because of a strong lobby by the domestic banana industry of Australia which claims allowing the shipment of bananas will cause an infestation of their plantations.
This prompted the Philippines to ask the WTO last year to create a dispute panel that will resolve the case. The WTO however, has not been able to come up with the members of the panel.