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Complaint by Brazil.
On 24 February 1997, Brazil
requested consultations with the EC in respect of the EC regime for the
importation of certain poultry products and the implementation by the EC
of the Tariff Rate Quota for these products. Brazil contended that the EC
measures are inconsistent with Articles X and XXVII of GATT 1994 and
Articles 1 and 3 of the Agreement on Import Licensing Procedures. Brazil
also contended that the measures nullify or impair benefits accruing to it
directly or indirectly under GATT 1994.
On 12 June 1997, Brazil requested the establishment of
a panel. At its meeting on 25 June 1997, the DSB deferred the
establishment of a panel.
Panel and Appellate Body proceedings
Further to a second request to establish a panel
by Brazil, the DSB established a panel at its meeting on 30 July 1997.
Thailand and the US reserved their third-party rights. On 11 August 1997,
the Panel was composed. The report of the Panel was circulated to Members
on 12 March 1998. The panel found that Brazil had not demonstrated that
the EC had failed to implement and administer the tariff rate quota for
poultry in line with its obligations under the cited agreements.
On 29 April 1998, Brazil notified its intention to
appeal certain issues of law and legal interpretations developed by the
Panel. The report of the Appellate Body was circulated to Members on 13
July 1998. The Appellate Body upheld most of the Panel's findings and
conclusions, but reversed the Panel's finding that the EC had acted
inconsistently with Article 5.1(b) of the Agreement on Agriculture. The
Appellate Body, however, concluded that the EC had acted inconsistently
with Article 5.5 of the Agreement on Agriculture.
At its meeting on 23 July 1998, the DSB adopted the Appellate Body
report and the Panel report, as modified by the Appellate Body report.
Implementation of adopted reports
The EC and Brazil announced
at the DSB meeting on 21 October 1998, that they had reached a mutual
agreement on a reasonable period of time for implementation, which was to
be the period up to 31 March 1999.
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