DISPUTE SETTLEMENT

DS: European Communities — Measures Affecting the Tariff Quota for Fresh or Chilled Garlic

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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Consultations

Complaint by Argentina. 

On 6 September 2006, Argentina requested consultations with the European Communities concerning measures that it has adopted that allegedly increase by 20,500 metre tons the tariff quota for fresh and chilled garlic in favour of the People's Republic of China.  According to Argentina, the increase of the tariff quota for garlic is the result of bilateral negotiations between the European Communities and China, pursuant to Article XXIV:6 of GATT 1994, as a result of the European Communities' enlargement.

More specifically, Argentina argues that the measures “include, but are not limited to, the following”:

  • EC's Council Decision 2006/398/EC, published on 8 June 2006, approving the bilateral agreement regarding the EC tariff quota for garlic, fresh or chilled, tariff item No. 07032000, resulting from the negotiations between the European Communities and the People's Republic of China pursuant to Articles XXIV:6 and XXVIII of GATT 1994;  and
      
  • Commission Regulation (EC) 991/2006 — amending Regulation (EC) 1870/2005 of 16 November 2005, published on 1 July 2006, implementing the increase by 20,500 tons of the tariff quota of garlic in favour of the People's Republic of China.

Argentina argues that the measures identified negatively affect its “initial negotiation rights”, pursuant to the tariff quota for garlic negotiated with the European Communities under Article XXVIII, as reflected in the exchange of letters contained in document G/SECRET/11/Add.1, approved the EC's Council Decision 2001/4047EC of 28 May 2001.

Argentina considers that the challenged measures are inconsistent with:

  • Articles XXIV:6 and XXVIII of GATT 1994, and the Understanding on the Interpretation of Articles XXIV:6 and XXVIII; and
      
  • Article XVI:4 of the WTO Agreement.

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