WTO: 2008 NEWS ITEMS

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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.

Panel request

DS375, DS376, DS377: European Communities and its member states — tariff treatment of certain information technology products

The EC blocked the establishment of a panel following the joint request from the US (WT/DS375/8), Japan (WT/DS376/8) and Chinese Taipei (WT/DS377/6). This request was being made for the first time.

The case relates to duties applied by the EC on three types of information technology (IT) products.

The US, Japan and Chinese Taipei argued that the EC should not apply any tariffs on cable and satellite boxes that can access the Internet, flat panel computer monitors and computers peripherals such as printers, copiers, faxes and scanners. The three complainants declared that these products were included in the IT Agreement (ITA) according to which signatories should apply a duty-free tariff on the products covered by the ITA. The three complainants added that they had consultations with the EC in June and July which did not resolve the dispute.

The EC stated that since the adoption of the ITA in 1996, new products and new technologies had appeared on the market which gave the products listed in the Agreement new functionalities and designs. The EC added that these additional functions were making the products different and they consequently fell outside the scope of the ITA. The EC said that given the rapid evolution in the IT industry, signatories to the ITA should revisit the product coverage of the Agreement through negotiation.

 

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Implementation 

DS291, DS292, DS293: European Communities — Measures affecting the approval and marketing of biotech products: status report by the European Communities

The EC provided a status report on the implementation of the DSB recommendations (WT/DS291/37/Add.7, DS292/31/Add.7, DS293/31/Add.7) and noted that good faith cooperation with the complainants continued.

The EC informed the DSB that Argentina and Canada agreed to further extend the reasonable period of time until 1 and 31 December 2008, respectively.

The US commented on its growing concern with the EC's approval system for biotech products and added that the EC had 50 biotech product applications awaiting approval. The US noted that only one product had reached a final decision in 2008. The US urged the EC to take prompt measures to resolve this dispute.

Canada hoped that further progress would be made.

  
DS343: United States — Measures relating to shrimp from Thailand

Following the adoption of the Panel and Appellate Body reports on 1 August 2008, the US announced its intention to implement the ruling of the DSB.

For this purpose, the US declared it would need a reasonable period of time.

Thailand stated it would meet with the US in the near future to discuss a reasonable period of time for prompt implementation.

  
DS345: United States — Customs bond directive for merchandise subject to anti-dumping/countervailing duties

Following the adoption of the Panel and Appellate Body reports on 1 August 2008, the US announced its intention to implement the ruling of the DSB. For this purpose, the US declared it would need a reasonable period of time (RPT).

India was disappointed at the US request for a RPT as the Indian shrimp industry continued to face an enormous burden on its exports due to the US anti-dumping measure. India said it would discuss the RPT with the US to make it the shortest possible.

 

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Byrd Amendment case (DS217) 

Japan informed the DSB it would continue to suspend concessions on US exports as of 1 September 2008 for another year. Japan said it would reduce the level of suspension taking into account the decrease in the amount of distribution attributable to Japan.

 

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Other business 

DS27: European Communities — Regime for the importation, sale and distribution of bananas: recourse to article 21.5 of the DSU by Ecuador

DS27: European Communities — Regime for the importation, sale and distribution of bananas: recourse to article 21.5 of the DSU by US

At the proposal of the Chairman, items 5 and 6 (WTO/AIR/3230) were removed from the agenda following the notification from the EC (WT/DS27/89 and WT/DS27/90) of its intention to appeal the compliance panel reports (WT/DS27/RW2/ECU and WT/DS27/RW/USA and CORR.1).

Under other business, Ecuador made a statement on this issue. Ecuador, followed by Panama, Nicaragua, Costa Rica and Colombia, stated it was disappointed that the EC did not commit to the agreement negotiated last July on bananas.

Ecuador added that the agreement is a standalone arrangement detached from the result of the Doha modalities. Ecuador concluded that the EC held the key to the solution in this long-lasting dispute.

Cameroon said that it was always in favour of a negotiated solution but a negotiation should not exclude other interested parties.

The EC took note of the statements and said that the July banana agreement was undeniably linked to the Doha negotiations. The EC questioned whether the DSB was the appropriate forum for this issue to be raised and said that the TNC or the General Council would be the most appropriate bodies.

  
DS336: Japan — Countervailing duties on dynamic access memories from Korea

Japan announced it had implemented the DSB's recommendations and had reduced the countervailing duty rate from 27.2% to 9.1%.

Korea said it was deeply disappointed to hear Japan's statement. Korea stated that Japan's decision not to withdraw its countervailing duty was against the DSB's decision. Korea added that it was left with no choice but to pursue the remedies available through the Dispute Settlement Understanding.

 

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Next meeting 

The next meeting of the DSB will be held on 23 September 2008.

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