DS381: United States — Measures Concerning the Importation, Marketing and Sale of Tuna and Tuna Products: Recourse to Article 21.5 of the Dispute Settlement Understanding (compliance panel) by the United States

The United States recalled that, as discussed at the April DSB meeting, its new rule directly addressed the DSB’s findings on the US dolphin-safe labelling measure and thus brought the US into compliance with its WTO obligations. The US noted that it had discussed the rule with Mexico but that Mexico insisted that arbitration proceedings to review Mexico’s request for authorisation to suspend concessions must continue. The US therefore requested that the DSB establish a compliance panel to confirm that the US has brought its measure into compliance with the DSB’s recommendations and rulings. Mexico indicated that it would also request a further “compliance panel” to examine the amended US measure.

Chinese Taipei noted that, in the absence of an agreement between the parties, the pending arbitration should not be suspended simply as a result of a declaration of compliance by the member concerned.

The DSB agreed to refer to the original panel, if possible, the matter raised by the US in document WT/DS381/31. Australia, Brazil, Canada, China, the European Union, Guatemala, India, Japan and Norway reserved their third-party rights to participate in the panel’s proceedings.

DS453: Argentina — Measures Relating to Trade in Goods and Services, report of the Appellate Body and report of the panel

Argentina expressed its satisfaction with the findings in this dispute which were of fundamental systemic importance. The findings confirmed that the General Agreement on Trade in Services (GATS) gave broad margin to members to maintain anti-abusive defensive measures on the transparency and exchange of fiscal information as a way of protecting public revenue. Argentina noted that this was the first dispute in which the Appellate Body established a standard to determine “likeness” in the context of Articles II and XVII of the GATS. The Appellate Body had ruled that an evaluation of “likeness” of services cannot be made in isolation of issues related to service providers.

Panama noted that the Appellate Body decision corrected a fundamental problem of reasoning that was found in the panel’s report. Had that not been corrected, it would have undermined the principle of non-discrimination in trade in services. Panama regretted that the Appellate Body, having reversed the panel’s findings, did not complete its analysis. Panama was satisfied that the Appellate Body did not support a discriminatory system that would violate the basic principles of the multilateral trading system.

The DSB adopted the Appellate Body report contained in documents WT/DS453/AB/R and WT/DS453/AB/R/Add.1 and the panel report contained in documents WT/DS453/R and WT/DS453/R/Add.1, as modified by the Appellate Body report.

 

Next meeting

The next regular meeting of the DSB is scheduled for 23 May 2016.