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Argentina - Definitive Safeguard Measure on Imports of Preserved Peaches
On 14 September 2001 Chile requested consultations with Argentina in respect of a definitive safeguard measure which Argentina applies on imports of peaches preserved in water containing added sweetening matter including syrup preserved in any other form or in water. According to Chile Argentina’s definitive safeguard measure is inconsistent with Articles 2 4 5 and 12 of the Agreement on Safeguards and Article XIX:1 of GATT 1994.
United States - Continued Dumping and Subsidy Offset Act of 2000
On 21 December 2000 and 21 May 2001 respectively the complainants requested consultations with the US concerning the amendment to the Tariff Act of 1930 signed on 28 October 2000 with the title of “Continued Dumping and Subsidy Offset Act of 2000” (the “Act”) usually referred to as “the Byrd Amendment”. According to the complainants the Act is inconsistent with the obligations of the United States under several provisions of the GATT the AD Agreement the SCM Agreement and the WTO Agreement. In particular the Act is alleged to be inconsistent with the obligations of the United States under: (i) Article 18.1 of the ADA in conjunction with Article VI:2 of the GATT and Article 1 of the ADA; (ii) Article 32.1 of the SCM Agreement in conjunction with Article VI:3 of the GATT and Articles 4.10 7.9 and 10 of the SCM Agreement; (iii) Article X(3)(a) of the GATT; (iv) Article 5.4 of the ADA and Article 11.4 of the SCM Agreement; (v) Article 8 of the ADA and Article 18 of the SCM Agreement; (vi) Article 5 of the SCM Agreement; and (vii) Article XVI:4 of the Marrakesh Agreement establishing the WTO Article 18.4 of the ADA and Article 32.5 of the SCM Agreement.
United States - Countervailing Measures Concerning Certain Products from the European Communities
On 10 November 2000 the EC requested consultations with the US concerning the continued application by the United States of countervailing duties on a number of products. In particular the EC claimed that the application of the “same person” methodology by the US and the continued imposition of duties based on it are in breach of Articles 10 19 and 21 of the SCM Agreement because there is no proper determination of a benefit to the producer of the goods under investigation as required by Article 1.1(b) of the SCM Agreement. The EC included in this request for consultations 14 US countervailing duty orders1 where this “same person” methodology was applied. All these cases involve alleged non-recurring subsidies granted to firms prior to a change of ownership.
European Communities - Anti-Dumping Duties on Imports of Cotton-Type Bed Linen from India - Recourse 1
On 3 August 1998 India requested consultations with the EC in respect of Council Regulation (EC) No 2398/97 of 28 November 1997 on imports of cotton-type bed-linen from India. India asserted that the EC initiated anti-dumping proceedings against imports of cotton- type bed-linen from India by publishing a notice of initiation in September 1996. Provisional anti-dumping duties were imposed by EC Council Regulation No 1069/97 of 12 June 1997. This was followed by the imposition of definitive duties in accordance with the above-mentioned EC Council Regulation No 2398/97 of 28 November 1997.
United States - Countervailing Duties on Certain Corrosion Resistant Carbon Steel Flat Products from Germany
On 10 November 2000 the EC requested consultations with the US in respect of countervailing duties imposed by the US on imports of certain corrosion-resistant carbon steel flat products (“corrosion resistant steel”) dealt with under US case number C-428-817. This dispute related in particular to the final results of a full sunset review of the above measure carried out by the US Department of Commerce (“DOC”) and published in the US Federal Register No. 65 FR 47407 of 2 August 2000. In this decision the DOC found that revocation of the countervailing duty order would be likely to lead to continuation or recurrence of a countervailable subsidy. The EC considered that this finding is inconsistent with the obligations of the US under the SCM Agreement and in particular in breach of Articles 10 11.9 and 21 (notably 21.3) thereof.
Overview
From the WTO perspective the year 2001 was above all the year of the Doha Ministerial Conference a turning point in the history of the WTO and in relations between developed and developing countries. In light of the tragic events of 11 September and its aftermath the mere fact that the Ministerial Conference could be held at Doha Qatar in November 2001 must be seen as a success. That Ministers in addition could agree the launch of a new round of trade negotiations is a recognition of the importance to the global economy of stimulating trade and development. It also brought to an end the uncertainty created by the frustrating failure at Seattle two years earlier. Last year was also one in which we concluded the accession of China Chinese Taipei Lithuania and Moldova to the WTO welcoming more than one quarter of the world’s population into our membership.
Overview of developments in the international trading environment
Although the path of world trade growth has been uneven in the past few years (contraction in 1998 rebound in 1999 and 2000 followed by a slowdown in 2001) the fact that trade continued to expand faster than output is indicative of the increasing openness of national economies. Part of this development is due to the gradual but continued trend towards more liberal trade policies around the world. Fears that the failure of the Third Ministerial Meeting in Seattle to agree on an agenda for a new trade round would lead to a resurgence of protectionism have not by and large materialized. This is a tribute to the good sense of governments in conducting their trade policies. But credit also goes to the strength of the multilateral rules under the WTO as well as commitments made under regional trade arrangements which have made it more difficult to take protectionist measures. Members also agreed at their Ministerial Meeting in Doha in November 2001 to build on these achievements and to put in place a comprehensive work programme to strengthen further the multilateral trading system. The recent accessions of the People’s Republic of China and Chinese Taipei as the 143rd and 144th Members respectively of the WTO will further strengthen the role of the multilateral trading system and the import of the upcoming negotiations.
World trade developments
The widely expected slowdown in the expansion of world output and trade turned out to be much stronger than most observers had projected at the beginning of the year 2001. Global output increased only marginally and world trade decreased somewhat both developments in sharp contrast to the preceding year when both trade and output expanded at record rates.
Annual Report 2002
The Annual report of the WTO focuses on the regular activities of the organization the details of its current structure staff and budget. The Annual report is published in the first half of each year.
Organization, secretariat and budget
The World Trade Organization came into being in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT) which had been established (1947) in the wake of the Second World War. The WTO’s main objective is the establishment of rules for Members’ trade policy which help international trade to expand with a view to raising living standards. These rules foster non-discrimination transparency and predictability in the conduct of trade policy.
United States - Preliminary Determinations with Respect to Certain Softwood Lumber from Canada
On 21 August 2001 Canada requested consultations with the US concerning the preliminary countervailing duty determination and the preliminary critical circumstances determination made by the US Department of Commerce on 9 August 2001 with respect to certain softwood lumber from Canada. This request also concerned US measures on company-specific expedited reviews and administrative reviews. In particular: As far as the preliminary countervailing duty determination is concerned Canada considered this determination to be inconsistent with US obligations under Articles 1 2 10 14 17.1 17.5 19.4 and 32.1 of the SCM Agreement and Article VI(3) of GATT 1994. With respect to the preliminary critical circumstances determination Canada considered this determination to be inconsistent with Articles 17.1 17.3 17.4 19.4 and 20.6 of the SCM Agreement. As regards US measures on company-specific expedited reviews and administrative reviews Canada considered these measures are inconsistent with US obligations under Article VI:3 of the GATT 1994 and Articles 10 19.3 19.4 21.1 21.2 and 32.1 of the SCM Agreement. Canada also considered that the US had failed to ensure that its laws and regulations are in conformity with its WTO obligations as required by Article 32.5 of the SCM Agreement and Article XVI:4 of the WTO Agreement. On the grounds that the affirmative preliminary countervailing duty and critical circumstances determinations had an immediate and significant trade impact Canada requested urgent consultations pursuant to Article 4.8 of the DSU. Although accepting Canada’s request to enter into consultations the US did not accept this to be a case of urgency for the purposes of Article 4.8 of the DSU since the measures in question involve the posting of bond for or deposit of preliminary duties which could be refunded in whole or in part.
European Communities - Trade Description of Sardines
On 20 March 2001 Peru requested consultations with the EC concerning Regulation (EEC) 2136/89 which according to Peru prevents Peruvian exporters to continue to use the trade description “sardines” for their products. Peru submitted that according to the relevant Codex Alimentarius standards (STAN 94-181 rev. 1995) the species “sardinops sagax sagax” are listed among those species which can be traded as “sardines”. Peru therefore considered that the above Regulation constitutes an unjustifiable barrier to trade and hence in breach of Articles 2 and 12 of the TBT Agreement and Article XI:1 of GATT 1994. In addition Peru argues that the Regulation is inconsistent with the principle of non-discrimination and hence in breach of Articles I and III of GATT 1994.
Chile - Price Band System and Safeguard Measures Relating to Certain Agricultural Products
On 5 October 2000 Argentina requested consultations with Chile concerning: the price band system established by Law 18.525 (as subsequently amended by Law 18.591 and Law 19.546) as well as implementing regulations and complementary and/or amending provisions; and the provisional safeguard measures adopted on 19 November 1999 by Decree No. 339 of the Ministry of Economy and the definitive safeguard measures imposed on 20 January 2000 by Decree No. 9 of the Ministry of Economy on the importation of various products including wheat wheat flour and edible vegetal oils. Argentina considered that these measures raised questions concerning the obligations of Chile under various agreements. According to Argentina the provisions with which the measures relating to the said price band system are inconsistent include but are not limited to the following: Article II of the GATT 1994 and Article 4 of the Agreement on Agriculture. According to Argentina the provisions with which the safeguard measures are inconsistent include but are not limited to the following: Articles 2 3 4 5 6 and 12 of the Safeguards Agreement and Article XIX:1(a) of the GATT 1994
United States - Continued Dumping and Subsidy Offset Act of 2000
On 21 December 2000 and 21 May 2001 respectively the complainants requested consultations with the US concerning the amendment to the Tariff Act of 1930 signed on 28 October 2000 with the title of “Continued Dumping and Subsidy Offset Act of 2000” (the “Act”) usually referred to as “the Byrd Amendment”. According to the complainants the Act is inconsistent with the obligations of the United States under several provisions of the GATT the AD Agreement the SCM Agreement and the WTO Agreement. In particular the Act is alleged to be inconsistent with the obligations of the United States under: (i) Article 18.1 of the ADA in conjunction with Article VI:2 of the GATT and Article 1 of the ADA; (ii) Article 32.1 of the SCM Agreement in conjunction with Article VI:3 of the GATT and Articles 4.10 7.9 and 10 of the SCM Agreement; (iii) Article X(3)(a) of the GATT; (iv) Article 5.4 of the ADA and Article 11.4 of the SCM Agreement; (v) Article 8 of the ADA and Article 18 of the SCM Agreement; (vi) Article 5 of the SCM Agreement; and (vii) Article XVI:4 of the Marrakesh Agreement establishing the WTO Article 18.4 of the ADA and Article 32.5 of the SCM Agreement.
United States - Tax Treatment for "Foreign Sales Corporations"
On 30 August 2002 the WTO issued the dispute panel reports in the case "United States - Tax treatment for "foreign sales corporations"".
Egypt - Definitive Anti-Dumping Measures on Steel Rebar from Turkey
On 6 November 2000 Turkey requested consultations with Egypt concerning an anti-dumping investigation by the Egyptian Ministry of Trade and Supply with respect to imports of rebar from Turkey. The investigation was completed and the final report released on 21 October 1999. As a result of the investigation anti-dumping duties were imposed ranging from 22.63-61.00 per cent ad valorem. Turkey considered that: Egypt made determinations of injury and dumping in that investigation without a proper establishment of the facts and based on an evaluation of the facts that was neither unbiased nor objective; during the investigation of material injury or threat thereof and the causal link Egypt acted inconsistently with Articles 3.1 3.2 3.4 3.5 6.1 and 6.2 of the Anti-Dumping Agreement; and during the investigation of sales at less than normal value Egypt violated Article X:3 of the GATT 1994 as well as Articles 2.2 2.4 6.1 6.2 6.6 6.7 and 6.8 and Annex II Paragraphs 1 3 5 6 and 7 and Annex I Paragraph 7 of the Anti-Dumping Agreement.
United States - Countervailing Measures Concerning Certain Products from the European Communities
On 10 November 2000 the EC requested consultations with the US concerning the continued application by the United States of countervailing duties on a number of products. In particular the EC claimed that the application of the “same person” methodology by the US and the continued imposition of duties based on it are in breach of Articles 10 19 and 21 of the SCM Agreement because there is no proper determination of a benefit to the producer of the goods under investigation as required by Article 1.1(b) of the SCM Agreement. The EC included in this request for consultations 14 US countervailing duty orders1 where this “same person” methodology was applied. All these cases involve alleged non-recurring subsidies granted to firms prior to a change of ownership.
United States - Section 129(c)(1) of the Uruguay Round Agreements Act
On 17 January 2001 Canada requested consultations with the US concerning Section 129(c)(1) of the Uruguay Round Agreements Act (the “URAA”) and the Statement of Administrative Action accompanying the URAA. In Canada’s view in a situation in which the DSB has ruled that the US has in an anti-dumping or countervailing duty proceeding acted inconsistently with US obligations under the AD or SCM Agreements the US law prohibits the US from complying fully with the DSB ruling. Under US law determinations whether to levy anti-dumping or countervailing duties are made after the imports occur. With regard to imports that occurred prior to a date on which the US directs compliance with the DSB ruling the measures require US authorities to disregard the DSB ruling in making such determinations even where the determination whether to levy anti-dumping or countervailing duties is made after the date fixed by the DSB for compliance. In such circumstances determinations by the US to levy anti-dumping or countervailing duties would be inconsistent with its obligations under the AD or SCM Agreements. Canada considered that these measures are inconsistent with US obligations under Article 21.3 of the DSU in the context of Articles 3.1 3.2 3.7 and 21.1 of the DSU; Article VI of the GATT 1994; Articles 10 and note 36 19.2 19.4 and note 51 21.1 32.1 32.2 32.3 and 32.5 of the SCM Agreement; Articles 1 9.3 11.1 18.1-4 and note 12 of the AD Agreement; and Article XVI:4 of the WTO Agreement.
United States - Countervailing Duties on Certain Corrosion-Resistant Carbon Steel Flat Products from Germany
On 10 November 2000 the EC requested consultations with the US in respect of countervailing duties imposed by the US on imports of certain corrosion-resistant carbon steel flat products (“corrosion resistant steel”) dealt with under US case number C-428-817. This dispute related in particular to the final results of a full sunset review of the above measure carried out by the US Department of Commerce (“DOC”) and published in the US Federal Register No. 65 FR 47407 of 2 August 2000. In this decision the DOC found that revocation of the countervailing duty order would be likely to lead to continuation or recurrence of a countervailable subsidy. The EC considered that this finding is inconsistent with the obligations of the US under the SCM Agreement and in particular in breach of Articles 10 11.9 and 21 (notably 21.3) thereof.
United States - Anti-Dumping and Countervailing Measures on Steel Plate from India
On 4 October 2000 India requested consultations with the United States concerning: final affirmative determinations of sales of certain cut-to-length carbon quality steel plate products from India at less than fair value by US Department of Commerce (DOC) on 13 December 1999 and affirmed on 10 February 2000; interpretation and use of provisions relating to facts available in the anti-dumping and countervailing duty investigations by DOC; and determination and interpretation by the US International Trade Commission (ITC) of negligibility cumulation and material injury caused by the said Indian steel imports. India considered that these determinations are erroneous and based on deficient procedures contained in various provisions of US anti-dumping and countervailing duty law. According to India these determinations and provisions raise questions concerning the obligations of the United States under the GATT 1994 the Anti-Dumping Agreement the SCM Agreement and the Agreement establishing the WTO (WTO Agreement). India considered that the provisions of these agreements with which these measures and determinations appear to be inconsistent include but are not limited to the following: Articles VI and X of the GATT 1994; Articles 1 2 3 (especially 3.3) 5 (especially 5.8) 6 (especially 6.8) 12 15 18.4 and Annex II of the Anti-Dumping Agreement; Articles 10 11 (especially 11.9) 15 (especially 15.3) 22 and 27 (especially 27.10) of the SCM Agreement; Article XVI of the WTO Agreement.
European Communities - Trade Description of Sardines
On 20 March 2001 Peru requested consultations with the EC concerning Regulation (EEC) 2136/89 which according to Peru prevents Peruvian exporters to continue to use the trade description “sardines” for their products. Peru submitted that according to the relevant Codex Alimentarius standards (STAN 94-181 rev. 1995) the species “sardinops sagax sagax” are listed among those species which can be traded as “sardines”. Peru therefore considered that the above Regulation constitutes an unjustifiable barrier to trade and hence in breach of Articles 2 and 12 of the TBT Agreement and Article XI:1 of GATT 1994. In addition Peru argues that the Regulation is inconsistent with the principle of non-discrimination and hence in breach of Articles I and III of GATT 1994.
Chile - Price Band System and Safeguard Measures Relating to Certain Agricultural Products
On 5 October 2000 Argentina requested consultations with Chile concerning: the price band system established by Law 18.525 (as subsequently amended by Law 18.591 and Law 19.546) as well as implementing regulations and complementary and/or amending provisions; and the provisional safeguard measures adopted on 19 November 1999 by Decree No. 339 of the Ministry of Economy and the definitive safeguard measures imposed on 20 January 2000 by Decree No. 9 of the Ministry of Economy on the importation of various products including wheat wheat flour and edible vegetal oils. Argentina considered that these measures raised questions concerning the obligations of Chile under various agreements. According to Argentina the provisions with which the measures relating to the said price band system are inconsistent include but are not limited to the following: Article II of the GATT 1994 and Article 4 of the Agreement on Agriculture. According to Argentina the provisions with which the safeguard measures are inconsistent include but are not limited to the following: Articles 2 3 4 5 6 and 12 of the Safeguards Agreement and Article XIX:1(a) of the GATT 1994
Executive summary
This report deals with the relevant WTO Agreements and the way they may influence health and health policies. In undertaking this joint study the WHO and WTO Secretariats seek to examine the linkages between trade and health policies so as to enable both trade and health officials to better understand and monitor the effects of these linkages.
Foreword
As the world becomes increasingly integrated it becomes less and less possible for different policy areas to be handled independently of each other. The linkage between trade and health has been the focus of much debate: real concerns should be dealt with and any misunderstandings should be clarified based on sound evidence and rigorous analysis.
Acknowledgements
This report was jointly prepared by the World Health Organization (WHO) and the Secretariat of the World Trade Organization (WTO).
The WTO agreements relevant to health
The World Trade Organization (WTO) is a relatively new international organization. However it is responsible for a system that is over 50 years old. Established on 1 January 1995 the WTO replaced the General Agreement on Tariffs and Trade (GATT) which dated back to 1948. This was a consequence of a decision taken by governments after seven and a half years of negotiations (the "Uruguay Round") which ended in 1994. With the WTO's creation the rules were expanded to new areas. While the GATT dealt with trade in goods only the WTO covers trade in services and intellectual property as well. There are also some areas such as textiles agriculture and sanitary and phytosanitary measures where the WTO goes beyond the GATT by having established specific trade rules. Under the WTO the procedure for settling trade disputes has also been strengthened.
Introduction
Trade the exchange of goods services and information between individuals or groups is as old as human history. Expanding trade is a central component of the increasing connectedness among countries.
Towards health and trade policy coherence
There is common ground between health and trade and between the objectives of the WHO and the WTO. The WHO's objective is "the attainment of all peoples of the highest possible level of health" and WHO defines health as "a state of complete physical mental and social well-being and not merely the absence of disease or infirmity". Good health is one important building block for sustainable economic development. With regard to trade an underlying assumption is that a liberal international trade regime subject to reasonably stable and predictable conditions improves the climate for investment production and employment creation and therefore contributes to economic growth and development. Generally the health status of a country is affected positively by such growth. This expectation is reflected in the opening words of the agreement establishing the World Trade Organization
WTO Agreements & Public Health
This joint study by the World Health Organization and the World Trade Organization Secretariat on the relationship between trade rules and public health. The study explains how WTO Agreements relate to different aspects of health policies. It is meant to give a better insight into key issues for those who develop communicate or debate policy issues related to trade and health. The study covers areas such as drugs and intellectual property rights food safety tobacco and many other issues which have been subject to passionate debate. In this joint effort the first of its kind WHO and the WTO Secretariat endeavour to set out the facts.
Specific health issues and WTO agreements
As noted in the preceding Chapter several WTO agreements are relevant to health policy. Generally the positive growth and income effects of more open and predictable trade regimes can provide the resources as well as goods services and information for effective health systems. The WTO agreements explicitly allow governments in pursuing national health and other policy objectives to take measures to restrict trade in order to protect health. This is legitimate as a matter of principle. The emphasis in WTO rules is on how policies are pursued without questioning the underlying objective. For example is a measure applied or enforced in a way that discriminates between trading partners or between imported products and products produced domestically? Are there ways of implementing policy that would be less restrictive on trade? Thus it is the manner in which government pursue specific health policies in practice which might have trade-related implications which are examined in this Chapter.
Effects of WTO Accession on Policy-Making in Sovereign States
The purpose of the paper is to discuss the effects of WTO accession on policy-making and institutional reforms in transition countries. This is done by looking at the experience of those transition countries which are already Members of the WTO. We start by examining the effect of accession on trade policy and distinguish between the effects of accession negotiations and those of autonomous policy initiatives. We find that no precise blueprint of accession conditions can be ascertained that WTO played a role albeit not an exclusive one in the process of liberalization that the costs of WTO Membership are not negligible that the benefits of WTO Membership are also significant in terms of a better market access improved governance and a recourse to better economic policies.
India - Measures Affecting the Automotive Sector
On 6 October 1998 the EC requested consultations with India concerning certain measures affecting the automotive sector being applied by India. The EC stated that the measures include the documents entitled “Export and Import Policy 1997-2002” “ITC (HS Classification) Export and Import Policy 1997-2002” (“Classification”) and “Public Notice No. 60 (PN/97-02) of 12 December 1997 Export and Import Policy April 1997-March 2002” and any other legislative or administrative provision implemented or consolidated by these policies as well as MoUs signed by the Indian Government with certain manufacturers of automobiles. The EC contended that: under these measures imports of complete automobiles and of certain parts and components were subject to a system of non-automatic import licenses. in accordance with Public Notice No. 60 import licenses might be granted only to local joint venture manufacturers that had signed an MoU with the Indian Government whereby they undertook inter alia to comply with certain local content and export balancing requirements. The EC alleged violations of Articles III and XI of GATT 1994 and Article 2 of the TRIMs Agreement.
United States - Definitive Safeguard Measures on Imports of Circular Welded Carbon Quality Line Pipe from Korea
On 13 June 2000 Korea requested consultations with the United States in respect of the definitive safeguard measure imposed by the United States on imports of circular welded carbon quality line pipe (line pipe). Korea noted that on 18 February 2000 the United States proclaimed a definitive safeguard measure on imports of line pipe (subheadings 7306.10.10 and 7306.10.50 of the Harmonized Tariff Schedule of the United States). In that proclamation the United States announced that the proposed date of introduction of the measure was 1 March 2000 and that the measure was expected to remain in effect for 3 years and 1 day. Korea considered that the US procedures and determinations that led to the imposition of the safeguard measure as well as the measure itself contravened various provisions contained in the Safeguards Agreement and the GATT 1994. In particular Korea considers that the measure is inconsistent with the United States’ obligations under Articles 2 3 4 5 11 and 12 of the Safeguards Agreement; and Articles I XIII and XIX of the GATT 1994.
Product Labeling, Quality and International Trade
This paper analyzes the reasons why countries may pursue different labeling policies in autarky and how this affects countries’ welfare in the context of international trade. In an asymmetric information environment where producers know the quality of the goods they are selling and consumers are not able to distinguish between them the quality governments choose to protect by a label depends on consumer preferences for and production costs of different qualities. Countries with different distributions of tastes and/or different production functions will thus decide to label differently. When they trade welfare effects will be different on the country as a whole and on different types of consumers within each country depending on whether countries choose to mutually recognize each others labeling policy or to harmonize their policies. In particular it will be the case that a country with weak preferences for high quality will oppose the introduction of an international harmonized label as it is better off under a regime of mutual recognition. When countries only differ in their costs of producing quality instead none of the trading partners will lose from a move towards trade under an international harmonized label.
Canada - Export Credits and Loan Guarantees for Regional Aircraft
On 22 January 2001 Brazil requested consultations with Canada concerning subsidies which are allegedly being granted to Canada’s regional aircraft industry. Brazil’s claims are as follows: Export credits within the meaning of Item (k) of Annex I to the SCM Agreement are being provided to Canada’s regional aircraft industry by the Export Development Corporation (EDC) and the Canada Account. Loan guarantees within the meaning of Item (j) of Annex I to the SCM Agreement are being provided by EDC Industry Canada and the Province of Quebec to support exports of Canada’s regional aircraft industry. Brazil takes the view that all of the above-mentioned measures are subsidies within the meaning of Article 1 of the SCM Agreement since they are financial contributions that confer a benefit. According to Brazil they are also contingent in law or in fact upon export and constitute therefore a violation of Article 3 of the SCM Agreement.
United States - Tax Treatment for "Foreign Sales Corporations" - Recourse 1
On 18 November 1997 the European Communities requested consultations with the United States in respect of Sections 921-927 of the US Internal Revenue Code and related measures establishing special tax treatment for “Foreign Sales Corporations” (FSC). The European Communities contended that these provisions were inconsistent with the United States' obligations under Articles III:4 and XVI of the GATT 1994 Articles 3.1(a) and (b) of the SCM Agreement and Articles 3 and 8 of the Agreement on Agriculture.
United States - Section 211 Omnibus Appropriations Act of 1998
On 8 July 1999 the European Communities requested consultations with the United States in respect of Section 211 of the US Omnibus Appropriations Act. The EC and its member States alleged as follows: - Section 211 which was signed into law on 21 October 1998 did not allow the registration or renewal in the United States of a trademark if it was previously abandoned by a trademark owner whose business and assets have been confiscated under Cuban law. - This law provided that no US court shall recognize or enforce any assertion of such rights. - Section 211 US Omnibus Appropriations Act was not in conformity with the US’ obligations under the TRIPS Agreement notably its Article 2 in conjunction with the Paris Convention Article 3 Article 4 Articles 15 to 21 Article 41 Article 42 and Article 62
India - Measures Affecting the Automotive Sector
On 6 October 1998 the EC requested consultations with India concerning certain measures affecting the automotive sector being applied by India. The EC stated that the measures include the documents entitled “Export and Import Policy 1997-2002” “ITC (HS Classification) Export and Import Policy 1997-2002” (“Classification”) and “Public Notice No. 60 (PN/97-02) of 12 December 1997 Export and Import Policy April 1997-March 2002” and any other legislative or administrative provision implemented or consolidated by these policies as well as MoUs signed by the Indian Government with certain manufacturers of automobiles. The EC contended that: under these measures imports of complete automobiles and of certain parts and components were subject to a system of non-automatic import licenses. in accordance with Public Notice No. 60 import licenses might be granted only to local joint venture manufacturers that had signed an MoU with the Indian Government whereby they undertook inter alia to comply with certain local content and export balancing requirements. The EC alleged violations of Articles III and XI of GATT 1994 and Article 2 of the TRIMs Agreement.
Canada - Measures Affecting the Importation of Milk and the Exportation of Dairy Products - Recourse 1
On 8 October 1997 the United States requested consultations with Canada in respect of export subsidies allegedly granted by Canada on dairy products and the administration by Canada of the tariff-rate quota on milk. The United States contended that these export subsidies by Canada distort markets for dairy products and adversely affect US sales of dairy products. The United States alleged violations of Articles II X and X1 of the GATT 1994 Articles 3 4 8 9 and 10 of the Agreement on Agriculture Article 3 of the SCM Agreement and Articles 1 2 and 3 of the Import Licensing Agreement.
The Impact of Transparency on Foreign Direct Investment
Non-transparency is a term given in this paper to a set of government policies that increase the risk and uncertainty faced by economic actors foreign investors. This increase in risk and uncertainty stems from the presence of bribery and corruption unstable economic policies weak and poorly enforced property rights and inefficient government institutions. Our empirical analysis shows that the degree of non-transparency is an important factor in a country's attractiveness to foreign investors. High levels of non-transparency can greatly retard the amount of foreign investment that a country might otherwise expect. The simulation exercise presented in the statistical part of this paper reveals that on average a country could expect 40 percent increase in FDI from a one point increase in their transparency ranking. Pari passu non-transparent policies translate into lower levels of FDI and hence lower levels of welfare and efficiency in the host country's economy. A nation that takes steps to increase the degree of transparency in its policies and institutions could expect significant increases in the level of foreign investment into their country. This increased investment translates into more resources which in turn increases social welfare and economic efficiency.
United States - Definitive Safeguard Measures on Imports of Circular Welded Carbon Quality Line Pipe from Korea
On 13 June 2000 Korea requested consultations with the United States in respect of the definitive safeguard measure imposed by the United States on imports of circular welded carbon quality line pipe (line pipe). Korea noted that on 18 February 2000 the United States proclaimed a definitive safeguard measure on imports of line pipe (subheadings 7306.10.10 and 7306.10.50 of the Harmonized Tariff Schedule of the United States). In that proclamation the United States announced that the proposed date of introduction of the measure was 1 March 2000 and that the measure was expected to remain in effect for 3 years and 1 day. Korea considered that the US procedures and determinations that led to the imposition of the safeguard measure as well as the measure itself contravened various provisions contained in the Safeguards Agreement and the GATT 1994. In particular Korea considers that the measure is inconsistent with the United States’ obligations under Articles 2 3 4 5 11 and 12 of the Safeguards Agreement; and Articles I XIII and XIX of the GATT 1994.
United States - Import Prohibition of Certain Shrimp and Shrimp Products - Recourse 1
On 8 October 1996 India Malaysia Pakistan and Thailand requested consultations with the United States concerning a ban on importation of shrimp and shrimp products from these complainants imposed by the US under Section 609 of US Public Law 101-162. Violations of Articles I XI and XIII of the GATT 1994 as well nullification and impairment of benefits were alleged.
Mexico - Anti-Dumping Investigation of High Fructose Corn Syrup (HFCS) from the United States - Recourse 1
On 8 May 1998 the US requested consultations with Mexico in respect of an anti-dumping investigation of high-fructose corn syrup (HFCS) grades 42 and 55 from the US conducted by Mexico. The US alleged that on 27 February 1997 the Government of Mexico published a notice initiating this anti-dumping investigation on the basis of an application dated 14 January 1997 from the Mexican National Chamber of Sugar and Alcohol Producers. The US further alleged that on 23 January 1998 Mexico issued a notice of final determination of dumping and injury in that investigation and consequently imposed definitive anti-dumping measures on these imports from the United States. The US contended that the manner in which the application for an anti-dumping investigation was made as well as the manner in which a determination of threat of injury was made is inconsistent with Articles 2 3 4 5 6 7 9 10 and 12 of the Anti-Dumping Agreement.
United States - Transitional Safeguard Measure on Combed Cotton Yarn from Pakistan
On 3 April 2000 Pakistan requested consultations with the US in respect of a transitional safeguard measure applied by the United States as of 17 March 1999 on combed cotton yarn (United States category 301) from Pakistan (see US Federal Register of 12 March 1999 document 99-6098). In accordance with Article 6.10 of the Agreement on Textiles and Clothing (ATC) the United States had notified the TMB on 5 March 1999 that it had decided to unilaterally impose a restraint after consultations as to whether the situation called for a restraint had failed to produce a mutually satisfactory solution. In April 1999 the TMB examined the US restraint pursuant to Article 6.10 of the ATC and recommended that the US restraint should be rescinded. On 28 May 1999 in accordance with Article 8.10 of the ATC the United States notified the TMB that it considered itself unable to conform to the recommendations issued by the TMB. Despite a further recommendation of the TMB pursuant to Article 8.10 of the ATC that the United States reconsider its position the United States continued to maintain its unilateral restraint and thus the matter remained unresolved. Pakistan claimed as follows: the transitional safeguards applied by the United States are inconsistent with the United States’ obligations under Articles 2.4 of the ATC and not justified by Article 6 of the ATC; the US restraint does not meet the requirements for transitional safeguards set out in paragraphs 2 3 4 and 7 of Article 6 of the ATC.
Argentina - Definitive Anti-Dumping Measures on Imports of Ceramic Floor Tiles from Italy
On 26 January 2000 the EC requested consultations with Argentina in respect of Argentina’s definitive anti-dumping measures on imports of ceramic floor tiles from Italy imposed on 12 November 1999. The EC claimed that the Argentinian investigating authority without justification disregarded all the information on normal value and on export prices provided by the exporters included in the sample; failed to calculate an individual dumping margin for each of the exporters included in the sample; failed to make due allowance for the differences in physical characteristics between the models exported to Argentina and those sold in Italy; and failed to inform the Italian exporters of the essential facts concerning the existence of dumping which formed the basis for the decision whether to apply definitive measures. The EC considered that the anti-dumping measures in question were inconsistent with Articles 2.4 6.8 in conjunction with Annex II 6.9 and 6.10 of the Anti-Dumping Agreement.
Can Trade Policy Help Mobilize Financial Resources for Economic Development?
The linkages between trade and resource mobilization are complex and not well defined in theory. To what extent does trade policy affect resource mobilization and what are the mechanisms? We argue that trade policy is a key factor of influencing the domestic fundamental balance between aggregate savings and investment. The main effect of trade policy on resource mobilization stems from its contribution to static and dynamic gains from trade. But the effect of trade policy on the supply of financial resources also operates through several channels including through linkages of trade policy with foreign investment government revenues income distribution foreign aid. The paper looks at direct and indirect channels and makes a distinction between short and long term effects of different trade strategies. We also briefly review trade barriers in goods and services affecting developing countries and the potential gains from further liberalization. The long term gains from trade liberalization are substantial but they may have to be set against short-term adjustments costs. The latter could and should be reduced by effective institutional and tax reforms.
United States - Tax Treatment for "Foreign Sales Corporations" - Recourse 1
On 18 November 1997 the European Communities requested consultations with the United States in respect of Sections 921-927 of the US Internal Revenue Code and related measures establishing special tax treatment for “Foreign Sales Corporations” (FSC). The European Communities contended that these provisions were inconsistent with the United States' obligations under Articles III:4 and XVI of the GATT 1994 Articles 3.1(a) and (b) of the SCM Agreement and Articles 3 and 8 of the Agreement on Agriculture.
United States - Section 211 Omnibus Appropriations Act of 1998
On 8 July 1999 the European Communities requested consultations with the United States in respect of Section 211 of the US Omnibus Appropriations Act. The EC and its member States alleged as follows: - Section 211 which was signed into law on 21 October 1998 did not allow the registration or renewal in the United States of a trademark if it was previously abandoned by a trademark owner whose business and assets have been confiscated under Cuban law. - This law provided that no US court shall recognize or enforce any assertion of such rights. - Section 211 US Omnibus Appropriations Act was not in conformity with the US’ obligations under the TRIPS Agreement notably its Article 2 in conjunction with the Paris Convention Article 3 Article 4 Articles 15 to 21 Article 41 Article 42 and Article 62