Monday, July 23, 2012
Dispute Resolution Updates from the WTO
Earlier this month, we reported that China had blocked the formation of a World Trade Organization (WTO) dispute resolution panel requested by the United States to consider claims by the United States, the European Union and Japan that China is violating its WTO obligations with respect to its treatment of exports of rare earths. At its meeting earlier today, the WTO approved the establishment of the panel, so resolution of this dispute will now move forward from the failed consulation stage.
Also today, India requested for the first time the establishment of a panel to consider countervailing measures applied by the United States on certain hot-rolled carbon steel products from India, which India considers to be inconsistent with US obligations under several provisions of the Subsidies Agreement and the GATT 1994 (WT/DS436). The United States rejected the claim and said that it was not in a position to agree to the establishment of a panel, so this matter will have to await the next Dispute Settlement Body (DSB) meeting scheduled for August 31.
The DSB also adopted the panel report in the case concerning anti-dumping measures on certain shrimp and diamond sawblades from China (WT/DS422/R). The United States said that it intends to implement the recommendations and rulings of the DSB. Both members informed the DSB that they have agreed that the “reasonable period of time” for compliance will be eight months.
The DSB also adopted the panel and Appellate Body reports in the case concerning country of origin labelling (COOL) requirements that involved Mexico and Canada against the United States (WT/DS384 and 386).
More information on these matters may be found on the WTO website.