WTO: 2011 NEWS ITEMS

DISPUTE SETTLEMENT

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NOTE:
This summary has been prepared by the WTO Secretariat’s Information and External 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 Body’s meetings.

Prior to the meeting, the DSB chair announced that on 23 September 2011, the Philippines notified the DSB of its intention to appeal the panel report (WT/DS396/R and WT/DS403/R) that examined its tax regime on distilled spirits. Consequently, the report was not considered for adoption by the DSB and this issue was removed from the agenda.
  

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Implementation

DS406: United States — Measures affecting the production and sale of clove cigarettes

The panel report (WT/DS406/R) related to this dispute was circulated on 2 September 2011.

Under Article 16.4 of the Dispute Settlement Understanding (DSU), the 60-day period within which the DSB is obliged to adopt a panel report that is not appealed would have expired on 2 November 2011.

Taking into account the workload of the Appellate Body, the US and Indonesia jointly requested (WT/DS406/5) that the DSB adopt a draft decision to extend the 60-day time period to 20 January 2012.

The US expected that this greater flexibility in scheduling the appeal would enable the Appellate Body to complete its work within the time period set out in the DSU (Art. 17.5).

Indonesia said that it was interested in concluding this case as swiftly as possible but was also sympathetic to the workload that the Appellate Body was currently facing.

Japan stated that this kind of decision must remain as an exception.

Following this joint request, the DSB agreed that it shall, no later than 20 January 2012, adopt the panel report, unless the DSB decides by consensus not to do so or the US or Indonesia notifies the DSB of its decision to appeal.

The following status reports were presented:

DS176: United States — Section 211 Omnibus Appropriations Act of 1998

The US reported that a number of legislative proposals had been introduced to the 112th Congress that would implement the DSB’s recommendations and that its Administration was continuing to work on solutions to implement the ruling (WT/DS176/11/ADD.106).

Cuba, the EU, China, Zimbabwe, Venezuela, Ecuador, Viet Nam, Dominican Republic, Bolivia, Paraguay, Mexico, Argentina and Brazil reiterated their concerns over the US non-compliance, and called upon the US to implement the DSB rulings and resolve this matter.

  

Request for panel establishment

DS184: United States — Anti-dumping Measures on Certain Hot-Rolled Steel Products from Japan

The US said that as of November 2002, its authorities had addressed the DSB’s recommendations with respect to the calculation of anti-dumping margins in the hot-rolled steel anti-dumping duty investigation at issue in this dispute (WT/DS184/15/ADD.106). The US added that with respect to those DSB recommendations not already addressed, its administration would work with the Congress with respect to appropriate statutory measures that would resolve this matter.

Japan hoped the US would soon be in a position to report to the DSB tangible progress with respect to the implementation of the remaining part of the DSB recommendations. Japan called upon the US to fully implement the DSB’s recommendations in this long standing dispute without any further delay.

DS160: United States — Section 110(5) of the US Copyright Act  

The US reported that its administration would continue to confer with the EU and to work closely with the US Congress to reach a mutually satisfactory resolution of this matter (WT/DS160/24/ADD.81).

The EU took note of the US status report and remained keen to work with the US authorities towards the complete resolution of this case.
  

DS291: European Communities — Measures Affecting the Approval and Marketing of Biotech Products  

The EU welcomed the continuation of the technical dialogue with the US which was an opportunity for both countries to discuss directly issues of their concern regarding biotechnology (WT/DS291/37/ADD.44). The EU hoped this constructive approach based on dialogue would allow both countries to leave litigation aside. The EU further noted that its regulatory procedures on biotech products continued to work as foreseen in the legislation. The EU stated that the number of GMOs authorized since the date of the panel establishment was 34.

The US remained concerned about delays in the EU's approval system for biotech products and the resulting effects on trade. The US was likewise concerned about bans adopted by EU member states on biotech products approved at the EU level.

DS322: United States — Measures Relating to Zeroing and Sunset Reviews  

The US mentioned that, in December 2010, its Department of Commerce announced a proposal to change the calculation of weighted average dumping margins and assessment rates in certain anti-dumping proceedings (WT/DS322/36/ADD.23). The US said that at this time, its Department of Commerce was continuing with its on-going work on the December proposal. The US added that in response to a joint request with Japan, on 13 September 2011, the arbitrator agreed to continue the suspension of its work (WT/DS322/39) in the retaliation proceeding engaged by Japan under Article 22.6 of the DSU (WT/DS322/23).

Japan took the US implementation efforts as a positive step forward. But Japan continued to seek prompt and full compliance by the US in respect to all of the measures at issue that were subject to the DSB recommendations in this dispute. Japan looked forward to a continued dialogue with the US and would closely monitor any developments on this matter.

China welcomed the steps taken by the US towards the implementation of the DSB rulings on zeroing matters. China expressed its concerns on how the US would implement the DSB decision on zeroing matters. China urged the US to take actions to be fully in compliance with the DSB rulings without any further delay.

DS350: United States — Continued Existence and Application of Zeroing Methodology

The US referred members to its status report provided on 15 September 2011 (WT/DS350/18/ADD.21) and to its statement on the case DS322 (see section above).

The EU referred to its statements made in January and February 2011 since the US was not reporting any steps to address the concerns raised by the EU in the DSB. The EU continued to be ready to engage with the US in discussions within the WTO and bilaterally in order to ensure that its concerns expressed in the DSB were addressed by the US. The EU looked forward to further information from the US on its intentions.

DS294: United States — Laws, Regulations and Methodology for Calculating Dumping Margins (Zeroing)

The US referred to its status report provided on 15 September 2011 (WT/DS294/38/ADD.15) and to its statement on the case DS322 (see section above). The US added that in response to a joint request with the EU, on 16 September 2011, the arbitrator had agreed to continue the suspension of its work (WT/DS294/40) in the retaliation proceeding engaged by the EU under Article 22.6 of the DSU (WT/DS294/35).

The EU referred to its statements made on the case DS350 (see section above).

DS363: China — Measures affecting trading rights and distribution services for certain publications and audiovisual entertainment products

China said it had made tremendous efforts to implement the DSB rulings and so far had completed amendments to most measures at issue (WT/DS363/17/ADD.8). China believed that this matter would be properly resolved through joint efforts and mutual cooperation by relevant parties.

The US remained concerned by China's lack of progress in bringing its measures related to films for theatrical release into compliance with DSB rulings. The US expressed significant concerns about the incomplete progress relative to China's measures on audiovisual home entertainment products, reading materials and sound recordings. The US hoped China would take steps to resolve this matter soon.

  

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Issues raised by WTO members 

United States — Continued Dumping and Subsidy Offset Act of 2000

This item was on the agenda at the request of the EU and Japan. Japan and the EU, supported by Canada, India and Thailand, called upon the US to stop the transfer of anti-dumping and countervailing duties to its industry and to present a status report until the issue was resolved.

The US said that it had taken all actions necessary to comply with the DSB recommendations.

DS404: United States — Anti-dumping measures on certain shrimp from Viet Nam

The panel report (WT/DS404/R) which examined US anti-dumping measures on certain frozen warm water shrimps from Viet Nam and the use of “zeroing” was adopted on 2 September 2011.
According to the WTO rules (Art. 21.3 of the DSU), the US had 30 days after the adoption of the report to inform the DSB of its intentions regarding implementation.
The US informed the DSB of its intentions to implement the DSB rulings and asked for a reasonable period of time (RPT) to do so.
Viet Nam thanked the US for its notification regarding its intention to implement the DSB rulings and was willing to discuss the RPT for implementation with the US.

  

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Appellate Body members’ selection process

The DSB Chair, Ambassador Elin Østebø Johansen (Norway), reminded members that the Selection Committee (comprising the Director-General and the 2011 Chairpersons of the General Council, Goods Council, Services Council, TRIPS Council and the DSB) was in the process of interviewing the candidates proposed for the Appellate Body. 

She said that members could express their views on the candidates to the Selection Committee on 31 October, 1 and 2 November 2011.

She added that after completing its consultation process with members, the Selection Committee would meet for final deliberations.

She stated that, as agreed by the DSB in May this year, the Selection Committee recommendations should be made no later than 10 November 2011, so that a final decision could be taken by the DSB at its meeting on 21 November 2011.

  

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Next meetings

The next meetings of the DSB will be held on 5 October and 25 October 2011.

 

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