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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
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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