Prior to the meeting, the DSB chair announced that the United States had appealed the panel report (WT/DS381/R) that examined US measures on tuna imports. Consequently, the report was not considered for adoption by the DSB and this issue was removed from the agenda

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Panel establishment

DS425: China — definitive anti-dumping duties on X-ray security inspection equipment from the European Union

The DSB established a panel following the EU’s second-time request (WT/DS425/2) to review anti-dumping duties imposed by China on European X-ray scanners.  

The EU referred to its statement made at the 19 January 2011 DSB  meeting and said that it maintained its panel request.

China regretted that the EU had decided to make a second request for the establishment of a panel. China believed that relevant measures at issue were fully consistent with the WTO Anti-dumping Agreement. China added that both the anti-dumping investigation and measures were based on solid facts and evidence. 

Japan, the United States, India, Thailand and Norway reserved their third-party rights.

 

DS427: China — anti-dumping and countervailing duty measures on broiler products from the United States

The DSB established a panel following the US second-time request (WT/DS427/2) to examine China’s anti-dumping and countervailing measures on US chicken broiler products.

The United States said that China’s dumping and subsidy determinations appeared to be inconsistent with China’s obligations under the Anti-dumping Agreement. The US added that its concerns related to every phase of China’s investigation.  

China regretted that the US had decided to make a second request for the establishment of a panel. China said that the anti-dumping and countervailing measures at issue were consistent with WTO rules.

The EU said that it would follow this proceeding very closely as a third party, since it expressed similar concerns when bringing up its request for the establishment of a panel under the previous agenda point (see section above — WT/DS425).

Thailand, Japan, Saudi Arabia, Norway and the EU reserved their third-party rights.

 

DS426: Canada — measures relating to the feed-in tariff program

The DSB established a panel following the EU’s first-time request (WT/DS426/5).

The EU said that consultations with Canada were useful to set out and explain both parties’ interests and concerns, but they failed to result in a satisfactory adjustment of the matter. The EU was seriously concerned about the measures at stake considering the EU’s significant commercial interest in the area of renewable energy technologies, including in the Canadian market, and the negative effects that this kind of measure would have on the world-wide deployment of low-carbon technologies for the generation of electricity. Feed-in-tariff (FIT) programmes should be designed and implemented in a way that does not discriminate against foreign goods.

Canada expressed disappointment regarding the EU’s request for the establishment of a panel. The consultations held with the EU were helpful, but they did not seem to have been sufficient to satisfy the EU’s concerns. According to Canada, the Ontario FIT programme was established to increase the supply of renewable energy in that province and it supported Ontario’s committed transition from coal-fired electricity generation. Canada said it was confident that its FIT programme was consistent with its WTO obligations. Canada mentioned that at Japan’s request the DSB had recently established a panel (WT/DS412) to consider the same measures now challenged by the European Union. Canada had held consultations with the EU, Japan and the existing panel in the other dispute to determine whether harmonization of the timetables would be feasible. According to Canada, as a result of those consultations, in order to allow the proceedings in the two disputes to be promptly harmonized, Canada had agreed to the establishment of a panel and would move quickly with the EU to compose the same panel.

Japan said that it was supportive of the principle of harmonization and informed the DSB that the panel in WT/DS412 had decided to harmonize the timetables in both cases by postponing the first substantive meeting by almost two months. Japan regretted the panel’s decision. Japan added that a two-month delay could not be considered as minimum or insignificant. Japan said that it could object to the establishment of the panel to preserve its rights but had decided not to do so in a spirit of co-operation and on the understanding that the timetable subsequent to the first meeting would be expedited so as to compensate the initial delay in the case WT/DS412. Japan said that it trusted the panel’s assurance that any new harmonized timetable would be drafted with a view to keeping the delay in WT/DS412 to a minimum.

China, Japan, Australia, India, the US, Chinese Taipei and Saudi Arabia reserved their third-party rights.

 

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Adoption of reports

DS396 and DS3403: Philippines — taxes on distilled spirits

The DSB adopted the panel and Appellate Body reports (WT/DS403/R — WT/DS403/AB/R — WT/DS396/AB/R — WT/DS396/R) which reviewed the Philippines’ tax regime on distilled spirits.

The Philippines welcomed a number of the Appellate Body’s findings, including the reversal of the panel’s finding that all distilled spirits were "like" each other. The Philippines also agreed with the Appellate Body’s statement that  Article III(2) of the General Agreement on Tariffs and Trade was concerned to a degree with protecting competitive opportunities and looked forward to working with the EU and the US in the next stages of this dispute.

The US said that that it had been concerned with the Philippines’ discriminatory taxes on distilled spirits and was pleased to propose the adoption of the panel and Appellate Body reports. The US said that the reports were precise and thorough and were a strong affirmation of the longstanding commitments to the non-discriminatory treatment of imported products. The US looked forward to action very soon by the Philippines to reform its tax system and meet its WTO obligations.

The EU was satisfied that the Appellate Body upheld the panel findings concerning the Philippines’ violation of the principle of non-discrimination with regard to its taxation system for distilled spirits. The EU trusted the Philippines would promptly take the necessary step to remedy this longstanding discrimination and re-establish WTO compatibility.

 

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Other business: Appellate Body members selection process

The DSB chair, Ambassador Elin Østebø Johansen (Norway), informed WTO members that Appellate Body judge Shotaro Oshima had expressed his intention to resign from his position. Ambassador Johansen said that, originally, the first four-year term of Mr Oshima was to expire on 31 May 2012. She added that Mr Oshima’s resignation would take effect 90 days from the date of his resignation letter and that there would be a vacancy in the Appellate Body after 6 April 2012. Ambassador Johansen said she would submit a proposal at the DSB meeting on 22 February 2012 to launch the selection process as from 22 February 2012 so that the DSB would take a final decision on 24 May 2012.

Ambassador Johansen also mentioned that the first four-year term of Appellate Body judge Yuejiao Zhang would expire on 31 May 2012 and that she was eligible for reappointment for a second term which would start on 1 June 2012. As Ms Zhang expressed her interest in being reappointed for a second four-year term, Ambassador Johansen said she would submit a proposal at the DSB meeting on 22 February 2012 to carry out consultations with WTO members on Ms Zhang’s.

  

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Next meeting 

The next regular meeting of the DSB will be held on 22 February 2012.