WTO: 2013 NEWS ITEMS

DISPUTE SETTLEMENT

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On 28 April 2012, Ukraine’s Inter-Departmental Commission for International Trade decided to impose safeguard duties of 6.46 per cent on imports of cars of a cylinder capacity exceeding 1000cm3 but not exceeding 1500cm3, and of 12.95 per cent on imports of cars of a cylinder capacity exceeding 1500cm3 but not exceeding 2200cm3. Measures entered into force in April 2013.

In its request for consultations, Japan alleges that Ukraine acted inconsistently with the Agreement on Safeguards and the GATT 1994. In particular, it alleges Ukraine did not immediately notify the Committee on Safeguards and did not provide adequate opportunity for prior consultations with WTO members. It failed to publish a report setting forth its findings and reasoned conclusions and a detailed analysis of the case under investigation, and applied the safeguard measures two years after the end of the investigation period. Japan also alleges that Ukraine applied the safeguard measures beyond the extent necessary to prevent or remedy serious injury.

At the 22 October 2013 meeting of the WTO Committee on Safeguards, Japan had expressed serious concerns over the large-scale effect of Ukraine’s measures on Japanese auto exports. It had noted that it was seriously considering following steps under the WTO Dispute Settlement Understanding.

It is the second case brought against Ukraine since its accession to the WTO in 2008 (the first case, on distilled spirits, was brought by Moldova in March 2011 — DS423).

> Further information will be available within the next few days in document WT/DS468/1

What is a request for consultations?

The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.

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