Settlement Body 12 December 2000
Canadas retaliation against Brazil approved in aircraft case
The WTO Dispute Settlement Body on 12 December 2000 agreed to let Canada impose trade sanctions of up to C$344.2 million per year on imports from Brazil in retaliation for Brazils failure to implement a ruling on aircraft export subsidies.
DSB also set up a new panel to hear the EUs
complaint about Chilean restrictions on unloading
swordfish in its ports.
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Case DS46: Brazil: Export financing programme for aircraft
The DSB authorized retaliatory sanctions (officially known as suspension of concessions) totalling C$344.2 million per year to be imposed by Canada against imports from Brazil because Brazil has failed to implement a ruling on export subsidies for aircraft.
Canada based its request on an arbitration report WT/DS46/ARB which set the amount of appropriate countermeasures at this level after Canada first asked in May 2000 to impose retaliatory sanctions totalling C$700 million per year.
In a statement on implementation of the DSB recommendations WT/DS46/AB/R , Brazil announced that on 6 December 2000 it had enacted new regulations for its aircraft financing programme (called PROEX) that brought it in full conformity with Brazils WTO obligations.
Canada responded that, from its initial assessment, Brazils proposal did not constitute compliance with WTO agreements.
Japan commented that the WTO Dispute Settlement Understanding (DSU), the agreement that governs the dispute process, provides no appropriate mechanism for dealing with how to examine whether a governments new measures comply after sanctions have been authorized.
Panel set up in a new case Back to top
Case DS193: Chile: Measures affecting the transit and importation of swordfish
Since this was the second request from the EU, the DSB automatically agreed to establish a panel to hear this case.
The EU complains that its fishing vessels operating in the South East Pacific are not allowed under Chilean legislation to unload their swordfish in Chilean ports either to land them for warehousing or to transship them onto other vessels. Consequently Chile makes transit through its ports impossible for swordfish. This prohibition renders also impossible the importation of the affected catches into Chile. This, the EU alleges, violates Article V of the General Agreement on Tariffs and Trade, which deals with freedom of transit, and GATT Article XI, which deals with eliminating quantitative restrictions.
In the meeting, the EU reiterated its preference for a mutually-agreed solution and hoped an agreement on sustainable fishing of swordfish would be reached with Chile before the panelists are appointed. The EU said it had put forward a compromise proposal at the end of November.
Chile said it had responded to the proposal and awaited EUs comments. Chile also said it hoped to reach an agreement with the EU.
The following countries requested to be third parties: Australia, Canada, Ecuador, Iceland, India, Norway and the United States.
First time requests for panels to be set up Back to top
Because this was a first-time request and it was opposed, a panel was not set up.
Case DS204: Mexico: Measures affecting telecommunications services
Mexico blocked the US first request for the establishment of a panel, saying that the request did not indicate clearly the trade measures at stake. The three-page US request is document WT/DS204/2.
Status reports: Surveillance of implementation of recommendations adopted by the DSB Back to top
Case DS156 Guatemala Definitive anti-dumping measures on grey Portland cement from Mexico
Guatemala announced it had removed the anti-dumping measures in question and thus applied without delay the DSB recommendations.
Mexico thanked Guatemala for its information and its speed.
Case DS27 European Communities: Regime for the importation, sale and distribution of bananas
The EU reported that it was finalizing its internal decision-making process with a view to implementing rapidly a WTO-compatible new import regime, based on a first come-first served system (see document WT/DS27/51/Add.14).
Colombia, Panama, the United States, Guatemala, Honduras, and Ecuador expressed concern that the EU was moving very slowly and that the proposal would not resolve the issue.
Cases DS76 Japan: Measures affecting agricultural products
Japan (document WT/DS76/11/Add.10) and the US said they were still consulting in an effort to sort out technical questions to resolve this case.
Case DS103 Canada: Measures affecting the importation of milk and the exportation of dairy products
Canada reported (document WT/DS103/12/Add.5 and WT/DS113/12/Add.5) that new consultations with New Zealand and the United States resulted in the extension of the implementation deadline from 31 December 2000 to 31 January 2001.
New Zealand expressed concern about the new export mechanisms for dairy products put into place by Canada to implement the DSB recommendations.
The United States said it disagreed with Canada about whether the actions taken to implement the DSB recommendations are adequate.
Case DS90 India: Quantitative restrictions on imports of agricultural, textile and industrial products
India (document WT/DS90/16/Add.4) repeated its intention to implement by the deadline of 1 April 2001.
Case DS34 Turkey: Restrictions on imports of textile and clothing products
Turkey (document WT/DS34/12/Add.4) informed the DSB that Turkish authorities had intensified their work with the intention of finding the most appropriate solution.
India regretted that Turkey did not give any clear indication of the details of the progress made in implementing the DSB recommendations. India also expressed concern regarding the restrictions reportedly imposed recently by the Turkish authorities on imports of fabric from India.
Case DS87 Chile: Taxes on alcoholic beverages
Chile (document WT/DS/87/17 and WT/DS/110/16) said it was currently drafting a bill to fulfill the DSB recommendations and that consultations had been held with the Chilean private sector and account had been taken of WTO Members views.
Agenda items withdrawn Back to top
Case DS141 European Communities: Anti-dumping duties on imports of cotton-type bed linen from India
This item was removed from the agenda as the EU appealed the panel report.
The next regular meeting will be on 1 February 2001.
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