DISPUTE SETTLEMENT: DISPUTE DS56

Argentina — Measures Affecting Imports of Footwear, Textiles, Apparel and other Items


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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Current status  back to top

 

Key facts  back to top

Short title:
Complainant:
Respondent:
Third Parties:
Agreements cited:
(as cited in request for consultations)
Request for Consultations received:
Panel Report circulated: 25 November 1997
Appellate Body Report circulated: 27 March 1998

  

Summary of the dispute to date  back to top

The summary below was up-to-date at
See also: One-page summary of key findings of this dispute

Consultations

Complaint by the United States.

On 4 October 1996, the US requested consultations with Argentina concerning the imposition of specific duties on these items in excess of the bound rate and other measures by Argentina. The US contended that these measures violate Articles II, VII, VIII and X of GATT 1994, Article 2 of the TBT Agreement, Article 1 to 8 of the Agreement on the Implementation of Article VII of GATT 1994, and Article 7 of the Agreement on Textiles and Clothing.

On 9 January 1997, the US requested the establishment of a panel. At its meeting on 22 January 1997, the DSB deferred the establishment of a panel.

 

Panel and Appellate Body proceedings

Further to a second request to establish a panel by the US, the DSB established a panel at its meeting on 25 February 1997. The EC and India reserved their third-party rights. On 4 April 1997, the Panel was composed. The report of the Panel was circulated on 25 November 1997. The Panel found that the minimum specific duties imposed by Argentina on textiles and apparel are inconsistent with the requirements of Article II of GATT, and that the statistical tax of three per cent ad valorem imposed by Argentina on imports is inconsistent with the requirements of Article VIII of GATT.

On 21 January 1998, Argentina notified its intention to appeal certain issues of law and legal interpretations developed by the Panel. The report of the Appellate Body was circulated to Members on 27 March 1998. The Appellate Body upheld, with some modification, the Panel’s findings and conclusions.

The Appellate Body report and the Panel report, as modified by the Appellate Body, were adopted by the DSB on 22 April 1998.

 

Implementation of adopted reports

At the DSB meeting on 22 June 1998, Argentina announced that it had reached an agreement on implementation with the US, whereby Argentina would reduce the statistical tax to 0.5% by 1 January 1999, and cap specific duties on textiles and apparel at 35% by 19 October 1998.

At the DSB meeting on 26 May 1999, Argentina announced that Decree 108/99, pursuant to which no import transactions covered by the statistical tax shall be taxed in excess of the amounts agreed between it and the United States, would enter into force on 30 May 1999.

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