WTO: 2009 NEWS ITEMS

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NOTE:
This summary has been prepared by the WTO Secretariat’s Information and External 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.

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Panel establishment 

DS382: United States — Anti dumping administrative review and other measures related to imports of certain orange juice from Brazil

At Brazil's second time request (WT/DS382/4), a panel was established to review anti dumping measures taken by the US affecting imports of Brazilian orange juice.

Brazil said that the US used the zeroing method to calculate the dumping margins for exporters of Brazilian orange juice. Brazil said that the US continued to use this illegal methodology in administrative reviews, placing an unfair burden on Brazilian exports.

The US was disappointed that Brazil chose to pursue its request for a panel and added it would defend the challenged measures before the panel. The US said that the panel request included measures that were not in existence at the time of consultations.

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

Cotton case — Statement by Brazil

DS267: United States — Subsidies on Upland Cotton. Recourse to Arbitration by the United States under Article 22.6 of the DSU and Articles 4.11 and 7.10 of the SCM Agreement: Decisions by the Arbitrators.

In this dispute, the arbitrators' report regarding the level of retaliation Brazil could impose on the US was published on 31 August 2009 (WT/DS267/ARB/1 and WT/DS267/ARB/2).

Brazil was satisfied that the arbitrators had taken extensive arguments by the parties on their merits, reaching determinations which were balanced and grounded in the applicable disciplines of the Dispute Settlement Understanding and the Subsidies and Countervailing Agreement. Regarding the retaliation amount related to the prohibited subsidies, Brazil said it intended to apply the formula provided by the arbitrators on the basis of 2009 data. Brazil said it would send a letter to the US requesting 2009 data on the US export credit guarantee programme (GSM102) and on export prices for three commodities, namely rice, pig and poultry meat.

The US said that the arbitrators reached a number of important conclusions, in a methodical and thoughtful way, rejecting some of Brazil's request. The US added that according to press reports Brazil intended to open a dialogue with the US and said it was ready to engage discussions with Brazil.

Australia said that the report confirmed why the Cairns Group consistently called for a fair and market-oriented agricultural trading system. Australia called on the US to implement the DSB rulings in this long-lasting dispute without further delay.

  

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Implementation 

DS332: Brazil — Measures Affecting Imports of Retreaded Tyres

In this dispute, the DSB adopted the Panel and the Appellate Body reports (WT/DS332/R and WT/DS332/AB/R ) on December 2007. The reasonable period of time for Brazil to comply with the DSB rulings expired on 17 December 2008. At the 20 March 2009 DSB meeting, Brazil submitted its first status report.

At today's meeting, Brazil said it submitted its final status report (WT/DS332/19/Add.6) in this dispute and was in full compliance with the DSB recommendations. Brazil said that the Supreme court's decision of June 2009 and a new regulation issued by Brazil's Secretary of Foreign Trade of August 2009 implemented the DSB ruling.

The EC took note of Brazil's seventh status report and observed that for the first time Brazil claimed to be in compliance with the DSB ruling. The EC added that it was in the process of reviewing this claim.

  

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Next meeting 

The next meeting of the DSB  will be held on 23 October 2009.

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