WORLD TRADE ORGANISATION

WTO Disputes: Some Prominent Cases

The Brazil- Canada Aircraft Dispute

Complainants Empresa Brasileira de Aeronautica S.A.

and Bombardier Product - short haul jets Issue- illegal subsidies from national governments Brazillian Govt. funded export program Proex - as interest

equalization- affected 15,000 workers in Canadian aerospace industry- under permitted WTO subsidies R&D support (Canadian Govt. supported Technology Partnerships Canada & loans from Canada Account- loans followed international practices

 Aug, 1999- DSB appellate ruling - Both subsidy programs

violated WTO rules; to be removed within 90 days

Brazil did not meet requirements to receive developing country

benefits

1999 Both claimed non compliance

2000 Dispute panel found both in violation Canada demanded sanctions; claimed damages in

excess of $ 7 billion in lost sales- Canadian govt. allowed retaliatory tariffs up to $233.5 Mn annually Disagreement on reforming Proex Canada- granted customers Air Wisconsin , Northwest Airlines favorable interest rates New ruling - Proex program violation of WTO norms; Brazil; export-subsidy program acceptable

 2002 DSB ruling- Canadian subsidies violate WTO; did

not sanction Brazils plans for counter measures

The Asian-US Shrimp and Sea Turtle Dispute

Complainants India, Malaysia, Pakistan and Thailand

Vs. United States Product - Shrimp Issue- US ban on shrimp exports constitutes trade discrimination U.S. US laws mandating use of Turtle Excluder Devices (TEDs) in

accordance to WTO guidelines; Section 609 U.S. Public Law 101102 require exporting countries to have TED in place Embargo on non complying nations on May 1, 1996

 India etc. Questioned U.S. Right to determine conservation policy in other countries Sec 609 obstructed trade worth $2.5 Bn Unfair discrimination against countries DSB (May,1998) Section 609 inconsistent with GATT Partial reversal of decision- Sec 609 consistent with GATT but discrimination present U.S. to revise provisions of SEC 609 in compliance with WTO; provide technical assistance to developing countries willing to use TEDs Prohibition on non- TED shrimp remained Malaysia requested an investigation of U.S. compliance DSB (2001) U.S. in full compliance

U.S. Steel Tariff Dispute

March 2002- U.S. levies import taxes up to 30% on steel

products to safeguard against foreign competition; U.S. Steel industry crisis Complainants Japan, China, Korea, Norway, Switzerland, EU Vs. U.S. Issue- Tariffs- a barrier to free trade WTO allows for measures to safeguard a product only if it determines that the product is being imported into its territory in such quantities and under such conditions that can cause serious injury to domestic industry- or a short duration, progressively liberalizing basis

 Affected nations can Request compensation If no agreement on compensation is reached, nations can suspend equivalent concessions to the trade of the member applying safeguards With EU support to relation against U.S. and on the verge

of imposing retaliatory tariffs (to $2 Bn of U.S. steel imports)- U.S. exempted approx. half of the EU steel imports affected by the original tariffs (by Aug 2002)

 The U.S.- EU Beef Hormones Dispute

The EU US Foreign Sales Corporation Dispute

Thank You!