WTO: 2014 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.

DS479: Russia — Anti-Dumping Duties on Light Commercial Vehicles from Germany and Italy

The European Union made its second request for the establishment of a panel to examine this dispute. It said that Russia had not signalled any intentions to remove the concerned measures. The EU continued to believe that the anti-dumping duties imposed on imports of light commercial vehicles from Germany and Italy were inconsistent with the Anti-Dumping Agreement. Russia expressed its disappointment that there had been no efforts from the EU to find a mutually agreed solution. Russia was convinced that its measures were consistent with the WTO agreements. The Dispute Settlement Body (DSB) agreed to establish a panel. China, India, Japan, Korea and the United States reserved their third-party rights to participate in the panel’s proceedings.

 

DS371: Thailand — Customs and Fiscal Measures on Cigarettes from the Philippines

The Philippines reiterated its concerns regarding Thailand’s compliance with the DSB’s recommendations and rulings in this dispute. Notably the Philippines was concerned about the Thai Attorney General’s decision to prosecute an importer of Philippine cigarettes for alleged under-declaring of customs value and the WTO-consistency of another ruling by the Thai Board of Appeals regarding entries subject to the DSB’s recommendations and rulings. In its view, these outstanding issues affected the credibility and proper functioning of the DSB particularly when a member carries out actions that nullify the very measures it had declared to have taken to comply. Thailand said that, as it had stated in previous DSB meetings, it had taken all actions necessary to implement the DSB’s recommendations and rulings.

 

DS413: China — Certain Measures Affecting Electronic Payment Services

The United States said that it remained concerned that China had failed to bring its measures into conformity with its WTO obligations in this dispute. The US called on China to adopt the regulations necessary for allowing foreign electronic payment services (EPS) suppliers to operate in China. China responded that it had taken all necessary actions and had fully implemented the DSB’s recommendations and rulings in this dispute. China regretted that the US had raised this matter again at the DSB and hoped that the US would reconsider the systemic implications of its position.

 

Under “Other Business”, the US made statements regarding two disputes:

DS267: US — Subsidies on Upland Cotton

The US informed the DSB that it had reached a mutually agreed solution with Brazil in this dispute and that the dispute was terminated. In that regard, there will be no countermeasures applied. Attached to the notification of the mutually agreed solution, to be circulated in document WT/DS267/46, was a Memorandum of Understanding (MOU) between the US and Brazil. The MOU, along with changes to US foreign programs and the 2014 Farm Bill, provided a basis for Brazil and the US to conclude the dispute.

The US added that this outcome was a result of more than four years of work by the parties to this dispute under a framework agreed to in 2010. Brazil noted that under the MOU, the US agreed to make additional adjustments in the export credit guarantees program, which shall operate according to the parameters bilaterally negotiated. This agreement would also contribute to mitigating the damage caused to Brazilian cotton producers due to the negative effects of the US cotton support programs.

Brazil stressed that the MOU was without prejudice to the rights and obligations of the US and Brazil. It did not imply recognition of the consistency with the covered agreements of the measures that were at issue in the dispute and other programs enacted in accordance with the US Agricultural Act of 2014. Nor did it prejudge whether the DSB’s recommendations and rulings had been implemented.

 

DS406: US — Measures Affecting the Production and Sale of Clove Cigarettes

The US informed the DSB that it had reached a mutually agreed solution with Indonesia in this dispute and that the dispute was terminated. The notification of a mutually agreed solution was circulated in document WT/DS406/17. Indonesia has withdrawn its request to the DSB, and the US has withdrawn its objection to that request. In light of the notification of the mutually agreed solution, the Arbitrator considered that it was not necessary to issue a decision on the matter referred to it and that it had completed its work.

 

Status reports

The US and the EU presented status reports on their implementation of the recommendations and rulings of the DSB on several disputes.

 

Next meeting

The next regular meeting of the DSB is scheduled for 18 November 2014.

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