Panels established in disputes over anti-dumping methods and rail equipment imports
The Dispute Settlement Body (DSB) on 16 December agreed to establish two panels to separately examine the European Union’s calculation methods in anti-dumping investigations and the Russian Federation’s treatment of railway equipment and parts imported from Ukraine.
DS494: European Union — Cost Adjustment Methodologies and Certain Anti-Dumping Measures on Imports from Russia (Second Complaint)
The Russian Federation noted it had requested the establishment of a panel during the last DSB meeting and referred to its statements made then. At the prior DSB meeting, the EU had said that Russia had raised issues in its panel request that had not been raised in consultations. Russia said that such a statement was incorrect and inappropriate.
The European Union said it regretted Russia’s request for the establishment of a panel and believed its measures were WTO consistent.
The DSB agreed to establish a panel. The following delegations reserved third-party rights to participate in the panel’s proceedings: Argentina, Australia, Brazil, Canada, China, India, Indonesia, Japan, Korea, Mexico, Norway, Ukraine, the United States and Viet Nam.
DS499: Russia — Measures Affecting the Importation of Railway Equipment and Parts thereof
Ukraine requested the establishment of a panel for a second time and reiterated its concerns over measures imposed by Russia on imports of railway products from Ukraine.
The Russian Federation expressed disappointment with Ukraine’s decision to request the establishment of a panel. Russia said it participated in consultations with Ukraine in good faith but stood ready to defend its rights.
The DSB agreed to establish a panel. The following delegations reserved third-party rights to participate in the panel’s proceedings: Canada, China, the European Union, Indonesia, Japan, Singapore and the United States.
Other panel requests
DS511: China — Domestic Support for Agricultural Producers
The United States said China was providing domestic support to agricultural producers at levels in excess of its commitments to the WTO. The US said it had attempted to resolve this issue with China both bilaterally and in the Committee on Agriculture. However, these attempts, along with consultations, had been unsuccessful, the US said. The US thus requested the establishment of a panel to examine the case.
China said it regretted the US request for the establishment of a panel and could not accept such a request.
China said it exercised its legitimate right to support its agricultural producers as the fast growth of China’s economy required and as provided by WTO rules. China said it always respected WTO rules and stood ready to defend its rights.
The DSB therefore deferred the establishment of a panel.
Implementation of DSB recommendations
DS461: Colombia — Measures Relating to the Importation of Textiles, Apparel and Footwear
Colombia, speaking under “Other Business”, said that it had issued decree 1744 of 2016 on 2 November 2016, which had modified the tariffs applicable to imports of products involved in this dispute. The decree set ad valorem MFN tariff rates, which were equal to Colombia’s bound tariff rates, for imports of the specific products in question. Colombia said it was thus no longer exceeding its bound tariff rates and that it had fully complied with the DSB’s recommendations and rulings.
Panama, the complainant in the dispute, said that it was still reviewing the decree issued by Colombia. However, Panama said it could state on a preliminary basis that the decree lost any capacity it may have had to comply with the DSB’s recommendations and rulings if the strict checks and customs procedures were considered alongside this amendment. Panama further expressed concern that the new measure contained provisions dealing with restrictions on ports of entry which had already been found to be WTO-inconsistent in a separate dispute. Panama said it was reserving all its rights provided under the Dispute Settlement Understanding.
Chair’s statement on appointment of Appellate Body members
DSB Chair Ambassador Xavier Carim (South Africa) informed members that the terms of Appellate Body (AB) members Mr. Ricardo Ramírez Hernández and Mr. Peter Van den Bossche will expire on 30 June 2017 and 11 December 2017 respectively. Accordingly, the DSB would need to decide on the appointment of two new AB members in 2017. The chair said he intended to circulate a draft decision in respect of a new selection process in early 2017. He said that he intended to propose to carry out one selection process for both positions. He further informed delegations that a swearing-in ceremony for new AB members Ms. Zhao Hong and Mr. Hyun Chong Kim would be held on 25 January 2017.
Turkey said that, because it had missed its opportunity at the last DSB meeting, it would like to make a statement to congratulate the two new AB members. Turkey noted the importance of diversity among AB members.
Status reports
Three status reports were presented. Statements on implementation were made regarding two other matters.
Panelists approved
The DSB approved one new name, proposed by Mexico, for inclusion in the Indicative List of Governmental and Non-Governmental Panelists (WT/DSB/W/585).
Workload
The chair provided information on the AB’s workload, on the number of disputes in the panel queue and at the panel composition stage, and on the ability of the WTO Secretariat to meet expected demand over the coming period.
Next meeting
The next regular DSB meeting is scheduled for 25 January 2017.
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