DISPUTE SETTLEMENT

DS: Slovak Republic — Measure Affecting Import Duty on Wheat from Hungary

This summary has been prepared by the Secretariat under its own responsibility. The summary is for general information only and is not intended to affect the rights and obligations of Members.

  

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Summary of the dispute to date

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Consultations

Complaint by Hungary.

On 18 September 1998, Hungary requested consultations with the Slovak Republic in respect of a regulation adopted by the Slovak Republic which entered into force on 10 September 1998, which allegedly increased the import duty of wheat originating in Hungary. Hungary asserted that the increased import duty on wheat (HS1001.1000, 1001.90) amounts to 2,540 SKK/t which equals to approximately 70% ad valorem. Hungary alleged that:

  • the bound rates for these tariff lines in the Slovak Schedule for 1998 are set at 4.4% (HS1001.1000), 27% (HS1001.9010) and 22.5% (HS1001.9091, 1001.9099);
     
  • it is the only country subject to this measure; and
     
  • this measure is inconsistent with Articles I and II of GATT 1994, and Article 4 of the Agreement on Agriculture.

Hungary invoked the urgency provision of the DSU due to the severe economic and trade losses that are being caused by this measure, which was expected to remain in force until 10 March 1999.

On 8 October 1998, Hungary requested the establishment of a panel.  At its meeting on 21 October 1998, the DSB deferred the establishment of a panel.

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