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WTO: 2009 NEWS ITEMS

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Disputes in the WTO
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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.

Adoption of panel report

DS362: China — Measures affecting the protection and enforcement of intellectual property rights

The DSB adopted the panel report (WT/DS/362/R) on the United States’ complaint against China's measures affecting the protection and enforcement of intellectual property rights.

The US said this dispute concerned fundamental provisions in the TRIPS Agreement related to the protection and enforcement of intellectual property rights (IPR). The US said it had been concerned that levels of counterfeiting and piracy in China remained unacceptably high and added it had brought this dispute because several aspects of China's legal regime were contributing to the problem by hindering effective IPR protection and enforcement.

The US stated that the panel agreed with its concerns. The US hoped that China would move promptly to implement the DSB recommendations. The US acknowledged that China had taken active steps to improve IPR protection and welcomed China's decision to reduce the criminal copyright limit from 1,000 to 500 infringing copies.

China said it had a productive and constructive dialogue on intellectual property protection and had over the years worked vigorously to ensure its protection regime met its WTO obligations. China regretted that the US set aside a more cooperative approach to pursue litigation without apparent economic benefit. One year ago, in its statement to the panel, China had acknowledged it did not have a perfect record on protection and continued to face difficulties in protecting IPRs. China insisted however it had always acted in good faith to implement its legal commitments under the TRIPS Agreement.

China added that the panel rejected the great majority of the arguments against its measures on criminal and copyright enforcement, as well as disposition of goods seized at the border. China said it would continue to fulfil its obligations under the TRIPS Agreement and the Dispute Settlement Understanding (DSU) in good faith and looked forward to working on a cooperative basis with other WTO members to strengthen the international protection of IPRs in a balanced manner. China concluded it would examine carefully how it would bring its measures into conformity with the DSB ruling.

Australia, Canada, Korea and the EC supported the panel's findings and welcomed the adoption of the report.


Panel establishment  back to top

DS383: United States — Anti-dumping measures on polyethylene retail carrier bags from Thailand

The panel was established at Thailand's first-time request (WT/DS383/2) which challenged the use of zeroing by the US in weighted-average to weighted-average price comparisons in an anti-dumping investigation.

Thailand said the DSB had ruled against this type of zeroing in several cases. Thailand hoped to work towards a prompt and satisfactory resolution of this dispute and thanked the US for agreeing to the establishment of the panel. Thailand concluded it appreciated the constructive and cooperative approach taken by the US.

The US said it had agreed with Thailand on a procedural framework that should permit this case to be resolved rapidly. The US confirmed that it had worked closely and constructively with Thailand and hoped to continue this cooperation.

Argentina, the EC, Japan and Chinese Taipei reserved their third-party rights.


Panel request  back to top

DS381: United States — Measures Concerning the importation, marketing and sale of tuna and tuna products

Mexico requested the establishment of a panel (WT/DS381/4) on US measures prohibiting the labelling of Mexican tuna products as dolphin safe. This first-time request was blocked by the US, hence the panel was not established.

Mexico said that this issue went back to the GATT days. Mexico specified that although today's case was based on different grounds, it had the same effect. Mexico stated that its fishing methods did not jeopardise the dolphin population and complied with international agreements. Mexico added that international NGOs considered Mexican fishing methods as most selective and respective of the marine environment. Mexico concluded that it had lost 1/3 of its tuna fleet as a consequence of the US measures.

The US said it was disappointed at Mexico's request to establish a panel and was confident that its dolphin safe labelling measures challenged by Mexico were consistent with its WTO obligations. The US urged Mexico to reconsider its decision.


Implementation of DSB rulings  back to top

According to Article 21.6 of the DSU, the DSB has to keep under surveillance the implementation of adopted rulings. At each regular meeting of the DSB, therefore, the member concerned provides a written and oral status report on its progress in the implementation of rulings.

DS332: Brazil — Measures affecting imports of retreaded tyres

The panel and Appellate Body reports were adopted on 17 December 2007 and Brazil had until 17 December 2008 to comply with the DSB recommendations (WT/DS332/R and WT/DS332/AB/R).

Brazil presented a status report (WT/DS332/19) for the first time to the DSB and reported it had initiated an action in the Supreme Court to prevent lower courts from issuing injunctions allowing imports of used tyres in Brazil and to revoke already granted ones. Brazil specified that while the Supreme Court acknowledged the relevance of the import ban on used tyres as part of Brazil's strategy on waste tyres, it had not yet ruled on this issue. Brazil believed that the Supreme Court judgement would strengthen Brazil's environmental policy and implement the DSB ruling.

The EC said it was neither convinced nor satisfied by Brazil's actions. The EC added that the fastest and best way to implement the DSB ruling was to lift the import ban on retreaded tyres which would also ensure that Brazil's MERCOSUR obligations were respected. The EC stressed that the DSB ruling did not permit keeping the import ban while maintaining the possibility for intra-MERCOSUR trade in retreads.

The EC underlined it was strongly in favour of environmental and public health protection and would not discourage Brazil from protecting its citizens. The EC however pointed out that more effective measures were available instead of selectively targeting certain imported products. The EC deplored allegations according to which it intended to export waste to Brazil and added it managed, recycled and recovered waste tyres without resorting to exports. The EC called upon Brazil to end without further delay its discriminatory practices regarding retreaded tyres by removing the import ban.

Argentina and Paraguay said talks on a common MERCOSUR regime regarding retreaded tyres should continue.

DS291, DS292, DS293: EC — Measures affecting the approval and marketing of biotech products

The EC reported on recent developments and stated it had approved the use of GM oilseed rape (T-45) on 10 March 2009. The EC also indicated it had agreed with Argentina and Canada to modify the reasonable period of time so as to respectively expire on 30 June 2009 and 1 May 2009 (WT/DS291/37/Add.14 — WT/DS292/31/Add.14 — WT/DS293/31/Add.14).

Canada, Argentina and the US reiterated their concerns about the EC's regulatory system for reviewing and approving new biotech products.

DS350: United States — Continued existence and application of zeroing methodology

The panel and Appellate Body reports were adopted on 19 February 2009 (WT/DS350/R and WT/DS350/AB/R), and according to Article 221.3 of the DSU, the US had 30 days after the adoption of the reports to inform the DSB of its intention to implement the recommendations.

The US stated it intended to comply with the DSB ruling despite its deep concern about the Appellate Body report. The US said it would need a reasonable period of time to implement the ruling.

The EC said it would stand ready to discuss with the US the appropriate period of time and hoped that prompt and full compliance would follow.

  

Next meeting  back to top

The next meeting of the DSB will be held on 20 April 2009 and the agenda will be available on 9 April 2009.

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