European Communities - Measures Affecting Trade in Commercial Vessels

Report of the Panel

On 3 September 2003, Korea requested consultations with the European Communities concerning certain measures by the EC and its member States in favour of their shipbuilding industry which, according to Korea, are inconsistent with their WTO obligations. These measures are as follows: - EC Regulation 1177/2002 (“TDM Regulation”) and EC Regulation 1540/98, as well as the EC member States’ implementing provisions. These measures provide for subsidies in favour of commercial vessels in various forms; - The provision by the EC and the member States of subsidies in support of commercial vessels built in the EC, in form of (a) operational aid granted on a contractual basis in forms such as grants, export credits, guarantees or tax breaks, (b) restructuring aid, (c) regional or other investment aid, (d) research and development aid, (e) environmental protection aid and (f) insolvency and closure aid.

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