DISPUTE SETTLEMENT

DS: Turkey — Additional Duties on Certain Products from the United States

This summary has been prepared by the Secretariat under its own responsibility. The summary is for general information only and is not intended to affect the rights and obligations of Members.

  

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Summary of the dispute to date

The summary below was up-to-date at

Consultations

Complaint by United States (See also DS557, DS558, DS559, DS560, DS566 and DS585)

On 16 July 2018, the United States requested consultations with Turkey concerning the imposition by Turkey of additional duties with respect to certain products originating in the United States.

The United States claimed that the measures appear to be inconsistent with:

  • Articles I:1, II:1(a) and II:1(b) of the GATT 1994.

On 18 October 2018, the United States requested additional consultations that supplemented its consultations request of 16 July 2018. The United States referred to the amendment of the additional duties measure, through which Turkey increased the rates of duty for 21 out of the 22 tariff lines concerned by the additional duties measure. The United States maintained that Turkey had not imposed the increased rates of duty on any other WTO Member and that such increase in rates of duty further exceed those set out in Turkey's schedule of concessions beyond what was originally imposed.

 

Panel and Appellate Body proceedings

On 20 December 2018, the United States requested the establishment of a panel. At its meeting on 11 January 2019, the DSB deferred the establishment of a panel.

At its meeting on 28 January 2019, the DSB established a panel. Brazil, Canada, China, the European Union, Guatemala, India, Indonesia, Japan, Kazakhstan, Mexico, New Zealand, Norway, the Russian Federation, Singapore, Switzerland, Chinese Taipei, Thailand, Ukraine and Venezuela reserved their third-party rights.

On 18 February 2019, the United States requested the Director-General to compose the panel. On 28 February 2019, the Director-General composed the panel.

On 4 September 2019, the Chair of the panel informed the DSB that the panel expected to issue its final report to the parties by the second half of 2020. The Chair also informed the DSB that the report would be available to the public once it was circulated to the Members in all three official languages, and that the date of circulation depends on completion of translation. On 15 December 2020, the Chair of the panel informed the DSB that due to the delays caused by the global COVID-19 pandemic, the panel now expected to issue its final report to the parties by the second half of 2021. On 17 December 2021, the Chair of the panel informed the DSB that after consulting with the parties, taking into account the uncertainty about the pandemic's evolution in 2022, the panel would tentatively proceed to arrange further meetings with the parties by virtual means. The Chair apprised the DSB that the panel expected to issue its final report to the parties not earlier than the second half of 2022. On 23 January 2023, the Chair of the panel informed the DSB that progress had been made in these proceedings during 2022 and that the panel expected to issue its final report to the parties by mid-2023. On 2 August 2023, the Chair of the panel informed the DSB that, following consultations with the parties, the panel expected to issue its final report to the parties before the end of 2023.

On 19 December 2023, the panel report was circulated to Members.

This dispute concerns additional duties imposed by Türkiye on certain products originating in the United States. The Panel referred to the measure through which these duties were imposed as the “additional duties measure”. The United States challenged the additional duties measure as inconsistent with Articles I:1, II:1(a), and II:1(b) of the GATT 1994.

Applicability of the relevant covered agreements

The Panel began by addressing Türkiye's argument that the additional duties measure was subject to Article 8.2 of the Agreement on Safeguards and Article XIX:3(a) of the GATT 1994, and that the application of Articles I and II of the GATT 1994 to that measure was therefore suspended. The Panel considered that whether Article 8.2 of the Agreement on Safeguards and Article XIX:3(a) of the GATT 1994 apply to Türkiye's additional duties measure depended on the characterization under the Agreement on Safeguards of the underlying measure adopted by the United States, in response to which Türkiye had adopted the additional duties measure.

With respect to the relevant measures of the United States, the Panel concluded that those measures were sought, taken, or maintained pursuant to a provision of the GATT 1994 other than Article XIX, namely Article XXI of the GATT 1994. The Panel accordingly found that the Agreement on Safeguards did not apply to those measures, as provided in Article 11.1(c) of that Agreement. Consequently, the Panel also found that Article 8.2 of the Agreement on Safeguards and Article XIX:3(a) of the GATT 1994 did not apply to Türkiye's additional duties measure, as the rights under those two provisions are unavailable in respect of measures to which the Agreement on Safeguards does not apply.

Claims under the GATT 1994

The Panel found that Türkiye's additional duties measure was inconsistent with Article I:1 of the GATT 1994 because, with respect to customs duties imposed on or in connection with importation, Türkiye failed to accord the advantage of lower tariff rates granted to products imported from other countries immediately and unconditionally to products originating in the United States. The Panel also found that the additional duties measure was inconsistent with Articles II:1(a) and II:1(b) of the GATT 1994 because it resulted in the imposition of ordinary customs duties in excess of those provided in Türkiye's Schedule and accorded to imports from the United States treatment less favourable than that provided for in Türkiye's Schedule.

 

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