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Settlement in WTO
Submitted By:
Akanksha Saxena
Shweta Tiwari
Supriya Rai
Vimal Panjwani
INTRODUCTION
Source : www.wto.org
STATUS OF CASES SETTLEMENT
16%
Source : www.wto.org
AGREEMENT-WISE SHARE IN COMPLAINTS FILED
77
62
27 24
13 10 7 6 5 3 3 2 2
TBT
DSU
ATC
SPS
SCM
GATT
GATS
TRIPS
1994
ping
Licensing
Agriculture
Anti-
port
ent
Safeguards
TO
Dum
Agreem
Im
W
Year of Panel reports Panel reports Percentage Panel reports Panel reports Percentage Panel Panel Percentage
adoption adopted c appealed d appealed e adopted appealed appealed reports adopted reports appealed appealed
20 20
68%
19
17
15
0
y 1996y 1997y 1998y 1999y 2000y 2001y 2002y 2003y 2004y 2005y 2006y 2007y 2008y 2009
Axis Title
Source: AB Report,2009
COUNTRY STATUS-WISE CASES
10%
Developed Country against
Developing Country
31%
18% Developed Country against
Developed Country
41%
250
Appearances before the Appellate Body
200 173
150 135
100
65 57
45 45
50
18
0
Appellants Other Appellants Appellees Third Participants
Respondent: India
• The 2007 draft budget made public on 28 February 2007 does not
remove the additional duties that the EC considers illegal.
• The products described in Part I of the Schedule relating to any contracting party,
which are the products of territories of other contracting parties, shall, on their
importation into the territory and subject to the terms, conditions or
qualifications set forth in that Schedule, be exempt from ordinary customs duties
in excess of those set forth and provided therein. Such products shall also be
exempt from all other duties or charges of any kind
• ARTICLE III
• The contracting parties recognize that internal taxes and other internal charges,
and laws, regulations and requirements affecting the internal sale, offering for sale,
purchase, transportation, distribution or use of products, should not be applied to
imported or domestic products so as to afford protection to domestic production.
O N
T I
LA
I O S
V
• At the Doha meeting the proposed market access formula suggested that
the bound rates be reduced to 84 %.
• The most likely a venue for attaining this objective is the EU- Indi
a Free Trade Agreement negotiations.
• Spirits and wines remain among the EU’s priorities for negotiations. A
favorable outcome in this regard was expected by end of 2010 on
finalization of the FTA.
DS357
United States - Subsidies And Other
Domestic Support For Corn And Other
Agricultural Products
DS357
Short title: US — Agriculture
Subsidies
Complainant: Canada
Respondent: United States of
America
Third Parties:
Agreements cited: Agriculture: Art. 3.2,
(as cited in request for consultations) 3.3, 6, 8, 9.1, 10.1
Subsidies and
Countervailing
Measures: Art. 3.1, 3.2,
4.2, 5, 6.3, 7.2, 2.1, 2.3
GATT 1994: Art. XVI
• By late February 2008 the case had stalled due to the inability
of the three parties to agree on a panel of arbitrators.
• Then, in late April 2008, Brazil and Canada informally agreed
to postpone proceeding with their case.
• Initially the ban covered meat and meat products from animals
treated with six growth promotants.
• In retaliation, starting in the late 1980s, the United States imposed trade
sanctions—as authorized by the WTO—in the form of high import tariffs
on selected EU agricultural products.
• To further complicate matter, finally the WTO issued a mixed ruling that
allows the US to continue its trade sanctions, but also allows the EU to
maintain its ban.
Case Proceedings
• In 1986-87 United States first invoked GATT dispute settlement under the
Tokyo Round’s Technical Barriers to Trade Agreement
• In 1996, both the United States and the EU had requested WTO
consultations in an attempt to resolve the dispute
• Australia, Canada, and New Zealand joined the United States in the
complaint
• In 1997, the WTO dispute settlement panel released its report agreeing
with the United States that the ban violated several provisions of the SPS
Agreement
• In 1998-EU appealed the ruling
Respondent: Belgium
Third Parties: India; Japan
Agreements cited: Agriculture: Art. 4
(as cited in request for consultations) Technical Barriers to Trade
(TBT): Art. 3, 5, 6, 7, 2, 9, 2.2,
2.4, 2.5
Customs valuation (Article
VII of GATT 1994): Art. 1,
Annex I, 3, 4, 5, 6, 7, 2, 10,
14, 16
GATT 1994: Art. I, II, II:1, VII,
VIII, VIII:1, VIII:3, X, X:1, X:2,
X:3, XI, XIII:1
• US considered that Belgium has failed to administer the pertinent laws and
regulations in a manner that is consistent with its WTO obligations.
• This has lead to the assessment of duties on rice imported from the US in
excess of the bound rate of duty, in contravention of the GATT 1194.
VI
OL
AT
• GATT, Article II : Schedules of concessions N S IO
Each contracting party shall accord to the commerce of the other
contracting parties treatment no less favorable than that provided for
in the appropriate Part of the appropriate Schedule annexed to this
Agreement.
Article VII-Valuation for Customs Purposes
b) “Actual value” should be the price at which, at a time and place determined
by the legislation of the country of importation, such or like merchandise is
sold or offered for sale in the ordinary course of trade under fully competitive
conditions.
• Belgium has failed to administer its customs valuation determinations and its
assessment of tariffs in a transparent manner, thereby impeding trade, and
appears to have applied the measures in a manner that discriminates against
rice imported from the US
• The DSB adopted the Appellate Body Report and the Panel
Report, as modified by the Appellate Body Report, on 16 May
2001.
Implementation of Results
• US said that it intended to implement the DSB’s
recommendations in a manner that would respect its WTO
obligations.
• Member Spending on Domestic Support, by Randy Schnepf, and CRS Report RL32916,
• “Brazil, Canada Subsidies Challenge Stalled Over WTO Panel Selection,” Inside U.S. Trade,
February 29, 2008.
• Brazil Changes Course by Filing Separate Case Rather than Joining Canada,” Jim
Wiesemeyer, AgWeb.com, July 12, 2007.
• Voxeu.com
• USDA, Farm Service Agency, Fact Sheet, Direct and Counter-Cyclical Payment Program
Wild Rice, Fruit, and Vegetable Provisions, February 2003, at http://
www.fsa.usda.gov/pas/ publications/facts/html/fav03.htm.
• “Holding Up on the US Corn WTO Case,” Washington Trade Daily, Vol. 16, No. 88,
May 3, 2007.
• National Cattlemen’s Beef Association (NCBA), “Fact Sheet: Growth Promotant Use
in Cattle
Production,”http://www.beefusa.org/uDocs/factsheetgrowthpromotantuseincattle
production811.pdf.
• Information on approved hormone products are at 21 CFR Parts 522, 556, and 558.
FDA requirements for the review and approval of new animal drug applications is
at http://www.fda.gov/AnimalVeterinary/GuidanceCompliance Enforcement/
GuidanceforIndustry/ucm123821.htm.
• EC, “EU complies with WTO ruling on hormone beef and calls on USA and Canada
to lift trade sanctions,” October
• United States – Continued Suspension of Obligations in the EC-Hormones
Dispute,” WT/DS320, First Written
• Yong-Shik Lee, “Critical Issues in the Application of thbe WTO Rules on
Safeguards,” Journal of World Trade, 34(2): 131-147, 2000.
• 1981 CV case on Lamb Meat (Lamb Meat from New Zealand, Inv. No. 701-
T-80 (Preliminary), USITC Publ. 1191, (Nov. 1981))
• Swinbank, Alan & Carolyn Tanner (1996). Farm Policy and Trade Conflict:
The Uruguay Round and CAP Reform. The University of Michigan Press:
Ann Arbor
• The WTO and Food Safety Regulatory Policy Innovation in theEuropean
Union’. Journal of Common Market Studies Nedergaard, Peter (2006). ‘The
2003 Reform of the Common Agricultural Policy:
• Against all Odds or Rational Explanations?’ Journal of European
Integration 28(3): 203–223
67