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Complaint by the European Communities.
On 12 August 1997, the EC requested
consultations with Korea in respect of a definitive safeguard measure
imposed by Korea on imports of certain dairy products. The EC contended
that under the provisions of different governmental measures, Korea has
imposed a safeguard measure in the form of an import quota on imports of
certain dairy products. The EC considered that this measure is in
violation of Articles 2, 4, 5 and 12 of the Agreement on Safeguard
Measures, as well as a violation of Article XIX of GATT 1994.
On 9 January 1998, the EC requested the establishment of a panel. At the DSB meeting on 22 January 1998, the EC informed the DSB that it was, for the time being, not pursuing the panel request. On 10 June 1998, the EC made another request to establish a panel. At its meeting on 22 June 1998, the DSB deferred the establishment of a panel.
Panel and Appellate Body proceedings
Further to another request to establish a panel by the EC, the DSB established a panel at its meeting on 23 July 1998. The US reserved its third party rights. On 20 August 1998, the Panel was composed. The report of the panel was circulated to Members on 21 June 1999. The panel found that Korea’s measure is inconsistent with Articles 4.2(a), and 5 of the Agreement on Safeguards, but rejected the EC claims under Article XIX of GATT 1994, Articles 2.1, 12.1 (although it found that Korea’s notifications to the Committee on Safeguards were not timely, and to that extent were inconsistent with Article 12.1), 12.2 and 12.3 of the Agreement on Safeguards.
On 15 September 1999, Korea 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 14 December 1999. The Appellate Body reversed one of the panel’s conclusions on the interpretation of Article XIX of GATT 1994 and its relationship with the Agreement on Safeguards; upheld one, but reversed another of the panel’s interpretations of Article 5.1 of the Agreement on Safeguards; and concluded that Korea violated Article 12.2 of the Agreement on Safeguards, thereby reversing in part the panel’s finding.
The DSB adopted the Appellate Body Report and the Panel Report, as modified by the Appellate Body Report, on 12 January 2000.
Implementation of adopted reports
On 11 February 2000, Korea informed the DSB that
it was studying ways in which to implement the recommendations of the DSB.
On 21 March 2000, the parties notified the DSB that they had agreed on a
reasonable period of time for Korea’s implementation of the
recommendations of the DSB. Pursuant to that agreement, the reasonable
period expired on 20 May 2000.
At the DSB meeting of 26 September 2000,
Korea informed the DSB that it had lifted its safeguard measure on 20 May
2000 and stated that it thereby had completed the implementation of the
DSB’s recommendations in this case.
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