WTO: 2006 NEWS ITEMS
Dispute Settlement Body 17 February 2006
The DSB establishes panel in reference to aircraft subsidy dispute
The DSB, on 17 February 2006, established a panel to help to resolve a number of procedural matters that have risen in the Dispute US measures affecting trade in large civil aircraft brought by the EC (DS317).
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NOTE:
This summary has been prepared by the WTO Secretariat’s Information and
Media Relations Division to help public understanding about developments
in WTO disputes. It is not a legal interpretation of the issues, and it is
not intended as a complete account of the issues. These can be found in
the reports themselves and in the minutes of the Dispute Settlement
Body’s meetings.
Request for panel establishment
These are cases that have completed the consultation phase, the first stage of a dispute. When consultations have failed, member governments are entitled to ask for a panel to be set up to examine the dispute. According to the rules, the respondent can reject the first request. At the second request, a panel is automatically established.
DS317: United States — Measures Affecting Trade in Large Civil Aircraft
The EC requested for the second
time the establishment of panel to resolve a number of procedural
“imbroglios” that have risen in the panel established on 20 July 2005. The
EC explained at the last DSB meeting that this “limbo” needed to be
resolved quickly since the EC considered that it has been deprived of its
rights to access the documents relevant, in particular regarding NASA and
Departments of Defence subsidies, to the dispute. The EC also requested at
this meeting that the DSB initiate further the procedures for developing
information-gathering under Annex V of the SCM Agreement.
The US expressed regret about the EC's action, as it considered that the
best approach would have been a mutual agreement on this panel request.
Although the panel would be established at this DSB meeting, the US asked
for consultations with the EC regarding the relationship between this
panel and the one established on 20 July 2005 (DS317). Furthermore, the US
added that it was not in position to accept EC's request to begin an
information-gathering process. According to the US, this so-called Annex V
procedures could not start until the parties agreed on the modalities,
noting that the Annex V procedures initiated on 23 September 2005 for the
civil craft dispute were inadequate.
The DSB agreed to establish the panel.
Members who reserved their third-party rights were Japan, Australia, Canada, Brazil and China.
DS331: Mexico — Antidumping duties on steel pipes and tubes from Guatemala
Guatemala requested for the first time a panel to be established for examining the definitive anti-dumping measures imposed by Mexico on imports of certain steel pipes and tubes from Guatemala and; the investigation leading to the imposition of these measures initiated by the Mexican investigating authority, the Secretaría de Economía.
Mexico objected to the establishment of the panel, believing that a mutual solution could be found among the two countries.
DS334: Turkey — Measures affecting the importation of rice
The US requested that the DSB establish a panel for considering Turkey restrictive import regime on the importation of rice. According to the US, US exports of rice to Turkey have plummeted, from 300,000 metric tons in 2000 to 58,000 metric tons in 2004.
Turkey said that at this stage it opposed to the establishment of a panel and would continue the consultations with the US.
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Surveillance of implementation
After a ruling has been adopted, the DSB keeps under surveillance the implementation of the ruling until the issue is resolved.
Within 30 days after the date of adoption, the Member concerned must inform the DSB of its intentions in respect of implementation of the ruling.
Six months after the implementation time period has been fixed, the Member must start presenting at each DSB a status report of its implementation — until full implementation.
Implementation status reports
- The United States presented the following status reports:
DS217 &
DS234: US — Continued Dumping and Subsidy Offset Act of 2000
The US reported to the DSB that on 1 February 2006, the US congress
approved the Deficit Reduction Act of 2005, including a provision to
repeal the the CDSOA — the so-called “Byrd Amendment”. Furthermore, on 8
February 2006, President Bush signed the Act into law. As a result, the US
announced that it had taken the necessary actions to implementation the
DBS rulings.
Although the recent steps taken by the US were welcomed, ten speakers did
not agree with the US's statement that it had now complied with the
rulings. They considered that as long as a transitional clause would allow
disbursements to be made until October 2007, the WTO incompatibility would
persist.
Thailand and Australia recalled to the US that they have reserved their
right to be granted DSB authorization to resort to suspension of
concession
DS176: US — Section 211 Omnibus Appropriations Act of 1998
The US reported that US Administration was working with Congress to
implement the DSB's rulings.
The EC, Cuba, China, Brazil, India and Venezuela expressed concerns about the continuation of a non-compliance in respect to this case and urged the US to implement the decision of DSB rulings as soon as possible.
DS184: US — Anti-Dumping Measures on Certain Hot-Rolled Steel
The US reported the Administration would continue to work with Congress to
enact legislation to implement the DSB’s recommendations.
Japan expressed concerns about the bill H.R. 2473 which was put before the Congress in May 2005. Japan asked for more information on the state of play of this legislation.
DS160: US — Section 110(5) of the US Copyright Act
The US said that US Administration continued to work closely with the US
Congress and continued to confer with the EC.
The EC regretted the slow progress showed by the US in solving this dispute. The EC called upon the US to take the necessary action. Finally, the EC recalled that it had reserved its rights to reactive at any point in time the arbitration on its retaliation request.
- The European Communities presented the following status report:
DS174 &
DS290: EC — Protection of Trademarks and Geographical Indications
for Agricultural Products and Foodstuffs
The EC reported for the second time to the DSB that the Commission
proposed to the Council of the European Union a new regulation on
geographical indications(GI). The EC also provided with answers to certain
questions raised by the US and Australia about the new EC's legislation.
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Implementation
EC — Regime for the Importation,
Sale and Distribution of Bananas
DS27 and related subsequent WTO proceedings
Honduras, Nicaragua and Panama made statements under this item to report
on the absence of progress in the consultations with the EC regarding its
banana import regime of 176 euros/mt that the EC applied since beginning
of 2006.
The EC said that it listened carefully to the statements but considered
that the DSB is not the appropriate forum to discuss the matter. It also
expressed its disagreement with the categorization of the latest as an
“implementation issue” under the DSB surveillance. Nevertheless, the EC
showed willingness to address the issues raised today and any other issues
related to the new EC bananas regime in the appropriate fora.
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Election of DSB chairperson
The DSB elected Ambassador Muhamad Noor (Malaysia) as chairperson of this body following a consensus decision taken at the General Council on 8 February 2006.
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Appointment / Re-appointment of Appellate Body members
The DSB Chairman launched the process for selecting a new Appellate Body member to replace the late Mr. John Lockhart for the remainder of his term, until 11 December 2009. For this propose, the DSB agreed to establish a Selection Committee consisting of the Director General and the 2006 Chairpersons of the General Council, the Goods Council, the Services Council, the TRIPS Council and the DSB in accordance with the procedures outlined in WT/DSB/1. He announced that the Selection Committee would begin its work after the candidates submission deadline of 31 March 2006.
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Next meeting
The next regular meeting of the DSB will be on 17 March 2006.