Dispute Settlement Body 18 March 2003

WTO allows Brazil sanctions against Canada in aircraft dispute

On 18 March 2003, the Dispute Settlement Body granted Brazil authorization to apply sanctions against Canada on the amount of US$247,797,000 following Canada's failure to comply with a WTO ruling on its subsidy program for regional aircraft (DS222).

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This summary has been prepared by the WTO Secretariats Information and Media Relations Division to help public understanding about developments in WTO disputes. It is not a legal interpretation of the issues, and it is not intended as a complete account of the issues. These can be found in the reports themselves and in the minutes of the Dispute Settlement Bodys meetings.

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Surveillance of implementation

DS160: United States Section 110(5) of the US copyright act

The US reported that it was still seeking a resolution of the dispute.
The European Communities expressed its disappointment about the US failure to comply.

DS136 & DS162: United States Anti-dumping Act of 1916

The US announced that a legislation repealing the 1916 Act had been introduced in the US House of Representatives on 4 March 2003.
Both the European Communities and Japan regretted the fact that the repealing bill would not terminate actions pending in courts.

DS176: United States Section 211 Omnibus Appropriations Act of 1998

The US stated that the US Administration would work with Congress to resolve this dispute.
The European Communities reiterated its position on abandoned trademarks (see DSB 27 January 2003).
Cuba stated that Section 211 was an obstacle to its development and to attracting investment.

DS184: United States Anti-dumping measures on certain hot-rolled steel products from Japan

The US said that the US Administration would continue to consult with Congress on this issue.
Japan urged the US to comply as soon as possible. back to top

Panel requests

DS267: United States Subsidies on Upland Cotton

Brazil requested for the second time the establishment of a panel.
Brazil argued that the US 2002 Farm Bill and other US subsidy payment legislation violated the WTO Agreements.
The United States suggested that energies would be better spent ensuring that the WTO agriculture talks were successful.
The DSB agreed to establish a panel.
The following countries requested to be third parties: Argentina, India, Pakistan, EC, China, Chinese Taipei, Canada and Venezuela.

DS276: Canada Measures relating to exports of wheat and treatment of imported grain

The United States requested the establishment of a panel for the first time.
The US said that Canada's measures relating to wheat exports and to the treatment of imported grain appeared to be inconsistent with Canada's obligations under the GATT 1994 and the Trade-Related Investment Measures (TRIMs) Agreement.
Canada blocked the US' request, arguing that its grain sector and transportation policies were fully consistent with WTO rules and obligations.

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Authorization to suspend concessions

DS222: Canada Exports credits and loan guarantees for regional aircraft

Brazil requested authorization to suspend concessions to Canada on the amount of US$247,797,000, as set by arbitration.
Brazil nevertheless reaffirmed its commitment to bilateral negotiations to achieve a level playing field for Brazil and Canada.
Canada had serious reservations on the calculation used by the arbitrator. Canada also expressed its hope that this decision would mark an end to several years of WTO litigation between Canada and Brazil regarding the financing of regional aircraft sales. Canada mentioned bilateral negotiations continuing in April.
The DSB authorized the suspension of concessions.

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Other business

DS202: United States Definitive safeguard measures on imports of circular welded carbon-quality line pipe from Korea

The US announced the termination of its safeguard measure on line pipe from Korea.
Korea confirmed and welcomed the announcement.

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Next meeting

The next meeting of the DSB will take place on 15 April 2003.

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