DISPUTE SETTLEMENT

DS: Turkey — Certain Measures concerning the Production, Importation and Marketing of Pharmaceutical Products

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

The summary below was up-to-date at

Consultations

Complaint by the European Union

On 2 April 2019, the European Union requested consultations with Turkey regarding various measures concerning the production, importation and marketing of pharmaceutical products. The measures identified by the European Union include the following alleged acts: a localisation requirement, a technology transfer requirement, an import ban on localised products, and a prioritization measure.

The European Union claimed that:

  • The localisation requirement and the prioritization measure appear to be inconsistent with Article III:4 of the GATT 1994.
     
  • The localisation requirement, the technology transfer requirement, and the prioritization measure appear to be inconsistent with Articles X:1 and X:3(a) of the GATT 1994.
     
  • All four categories of challenged measures appear to be inconsistent with Article X:2 of the GATT 1994.
     
  • The import ban on localised products appears to be inconsistent with Article XI:1 of the GATT 1994.
     
  • The localisation requirement appears to be inconsistent with Article 2.1 of the TRIMS Agreement and Article 3.1(b) of the SCM Agreement.
     
  • The technology transfer requirement appears to be inconsistent with Articles 3.1, 27.1, 28.2, 39.1 and 39.2 of the TRIPS Agreement.

The European Union submitted, together with its consultations request, a statement of available evidence pursuant to Article 4.2 of the SCM Agreement.

On 18 April 2019, the United States requested to join the consultations.

 

Panel and Appellate Body proceedings

On 2 August 2019, the European Union requested the establishment of a Panel. At its meeting on 15 August 2019, the DSB deferred the establishment of a panel.

At its meeting on 30 September 2019, the DSB established a panel. Brazil, Canada, China, India, Indonesia, Japan, the Russian Federation, Switzerland, Ukraine and the United States reserved their third-party rights.

On 4 March 2020, the European Union requested the Director-General to compose the panel. On 17 March 2020, the Director-General composed the panel.

On 15 September 2020, the Chair of the panel informed the DSB that due to the delays caused by the global COVID-19 pandemic, the panel did not expect to issue its final report to the parties before the second half of 2021. The Chair apprised the DSB that the report would be available to the public once it was circulated to the Members in all three official languages, and that the date of circulation depended on completion of translation.

 

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