Panel establishment

DS399: United States — Measures affecting imports of certain passenger vehicle and light truck tyres from China

A panel was established at China's second-time request (WT/DS399/2) which challenged US measures restricting imports on certain Chinese tyres.

China deeply regretted the US decision to impose restrictions on Chinese tyres and believed it was a departure of international consensus of G20 leaders to fight against protectionism. China urged the US to promptly withdraw its measures.

The US remained confident that the measures challenged were consistent with its WTO obligations and with the product-specific safeguard mechanism provided in China's Protocol of Accession. The US regretted that China would dispute this safeguard. The US added that in just four years, US tyre imports from China more than tripled by volume and the value of those imports rose to USD 1.8 billion. The US said that in those same four years its production had fallen by more than 25 per cent, while 14 per cent of US workers in the industry had lost their jobs.

The EU, Japan, Chinese Taipei, Turkey and Viet Nam reserved their third-party rights.

DS396: Philippines — taxes on distilled spirits

A panel was established at the EU's second-time request (WT/DS396/4) which challenged the Philippines tax regime on distilled spirits.

The EU said it had no choice but to request the establishment of a panel for a second time and declared that recent statements by the Philippines clearly indicated that there was no prospect to the passing of a bill that would bring a solution to this problem. The EU noted that this longstanding tax discrimination had worsened over the years and added that imported spirits were subject to an excise tax 10 to 50 times higher than the tax imposed on domestic spirits. The EU said that its exports to the Philippines had more than halved between 2004 and 2007, as a result of this increasing discrimination.

The US said that it was concerned as well about the Philippines' excise tax and its effect on market access for its exports of distilled spirits. The US said that it filed a request for consultations with the Philippines on 14 January 2010 (WT/DS403/1).

The Philippines regretted that the EU had chosen to renew its request for the establishment of a panel. The Philippines reiterated its full commitment to a rules-based multilateral trading system and firmly believed that its excise tax was fully consistent with its WTO obligations. The Philippines took note of the US consultations request and remained of the view that this matter could have been resolved to the mutual satisfaction of all parties if the respective interests, the legitimate sensitivities and policy objectives of all sides had been taken into account.

China, Australia, Mexico, Chinese Taipei, Thailand and the US reserved their third-party rights.

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Adoption of reports 

DS363: China — Measures affecting trading rights and distribution services for certain publications and audiovisual entertainment products

In this dispute, the US challenged China's measures affecting market access and distribution services of goods such as movies, DVDs, videos, publications or books.

At today's meeting, the DSB adopted the Appellate Body report (WT/DS363/AB/R) and the Panel report (WT/DS363/R and Corr.1).

The US said that it was looking forward to China moving promptly to implement the DSB's recommendations and rulings upon adoption of these reports.

China said it would examine the reports carefully and prudently and would advise the DSB of its intentions in respect to the implementation of the recommendations.

The EU called on China to expeditiously implement the recommendations in order to remove what constituted important shortcomings in China's import and distribution regime. The EU said it remained convinced that China could develop and implement its cultural policies within the boundaries set by its WTO obligations.

Japan raised a number of legal issues contained in the reports.

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Implementation of DSB rulings 

According to Article 21.6 of the Dispute Settlement Understanding, 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.

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

In this dispute, the DSB adopted the Panel report on 20 March 2009. On 15 April 2009, China informed the DSB of its intention to implement the recommendations contained in the report. China has until 20 March 2010 to comply with the ruling as agreed with the US.

At today's meeting, China presented its first status report (WT/DS362/14) on the actions it undertook to comply with the ruling.

China said that it had done a lot of substantial work related to implementation. China said that the legislative proposals relating to the amendment of the Copyright Law of China and the Regulations for Customs Protection of Intellectual Property Rights had already been submitted to the State Council for examination.

The US looked forward to China's implementation by 20 March 2010.

The EU was glad that China had already submitted relevant legislative proposals to the State Council. The EU hoped that this dispute would contribute to the improvement of China's intellectual property right (IPR) framework. The EU recognised the efforts deployed so far by China to improve IPR protection and enforcement and looked forward to further cooperation in order to reduce infringement levels and to ensure a strong and legally certain environment for IPR in China.

Other disputes currently under the DSB's surveillance

See summary on the last DSB meeting for an update.

  

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Other business 

Colombia made a statement in relation to the Director-General's report released on 22 December 2009 (WT/DS361/2 and WT/DS364/2) on his good offices activities in the banana case. Colombia said that it understood that the Director-General's report did not prejudice its rights under the WTO, including those drawn from the disputes and claims identified in paragraph 5 of the Geneva agreement on trade in bananas (WT/L/784) and under the terms of paragraph 6 of that same agreement.
 

  

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Next meeting 

The next meeting of the DSB will be held on 18 February 2010.