WTO Rulings

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    WTO RULINGS & TRADE DISPUTE

    Submitted by:

    Bindu Thushara. N

    IGTC

    August 23, 2013

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    CONTENTS

    Introduction

    WTO & Dispute Settlement Body(DSB)

    WTO backs US in Chicken trade dispute with china

    Result of Dispute Settlement process by WTO

    References

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    INTRODUCTION

    The World Trade Organization(WTO) is an organization t

    supervise and liberalize international trade.

    The organization deals with regulation of trade between

    countries

    It provides a framework for negotiating and form

    agreements and a dispute resolution process aimed

    participants' adherence to WTO agreements which a

    representatives of member governments and ratif

    parliaments.

    Most of the issues that the WTO focuses on derive from

    negotiation

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    WTO & DISPUTE SETTLEMENT BODY(DSB

    The WTOs dispute settlement agreement is formally k

    Understanding on Rules and Procedures Governing the

    Disputes (DSU).

    The DSU provides the primary legal means of settling

    conflicts in the WTO. Settlement of disputes is the respo

    DSB (composed of all Members of the WTO).

    The DSB has the sole authority to establish panelsconsider the case and to accept or reject the panels fi

    results of an appeal.

    It monitors the implementation of the rulings and recomme

    has the power to authorize retaliation when a country do

    with a ruling.

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    Continued

    A dispute arises when a country adopts a trade policy me

    some action that another member considers to be a violaagreement.

    A dispute may also arise if a member feels that, as a res

    countrysaction, it has been denied WTO benefits to which

    A third group of countries can also declare that they have

    the case and when that is the case, they enjoy some r

    Parties.

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    WTO BACKS USA IN CHICKEN TRADE DISPUT

    WITH CHINA The dispute concerns China's imposition of anti-

    countervailing measures on broiler chicken products fro

    States. The U.S. appeal to the WTO dates back to 2011.

    The United States challenged before the Panel both t

    analysis of China's Ministry of Commerce (MOFCOM)

    provisions of the Anti-Dumping and SCM Agreements and t

    as well as the manner in which MOFCOM conducted its inve

    The chicken dispute is part of a larger set of strains in the U

    relationship. The U.S. and China are the world's largest

    the U.S. runs a larger trade deficit with China than with any

    in the world.

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    The ruling found that China breached its WTO o

    recommended that China comply with WTO rules. China

    period of time to comply with the rules and can also appeal

    The Panel of WTO found that the allocation methodo

    adopted was inconsistent with Article 2.2.1.1, because MOF

    processing costs to products that were not actually associ

    production and sale.

    The Panel found that China had not rebutted the United

    facie case that MOFCOM had allocated the costs of pro

    products (blood and feathers) to the other products pr

    particular respondent concerned.

    Continued

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    The United States claimed that China acted inconsistently

    of the Anti-Dumping Agreement as, despite a specific reqUnited States Government, MOFCOM did not provide an o

    the interested parties with adverse interests to meet and

    views.

    The Panel upheld the claim as it found that no evidencesupported China's assertion that MOFCOM had contacted

    interested parties and MOFCOM had taken no other actio

    meeting between the US Government and these parties.

    Continued

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    Continued

    The United States claimed that MOFCOM improperly c

    amount of per unit subsidization in the subject imports a

    acted inconsistently with Articles 19.4 of the SCM Agreeme

    the GATT 1994.

    In particular, the United States claimed that MOFCO

    allocated subsidies received for the production of all chi

    only to the production of subject products.

    The Panel concluded MOFCOM had not explained ho

    calculation ensured that it only countervailed those subsi

    on the production of subject products and thus upheld the

    claim.

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    The United States claimed that MOFCOM's price effects

    inconsistent with Articles 3.1 and 3.2 of the Anti-Dumping A15.1 and 15.2 of the SCM Agreement.

    The United States argued that MOFCOM's findings of pric

    resulted from a comparison of subject import and domest

    values:o At different levels of trade

    o Included different product mixes.

    The Panel upheld the United States' arguments with respec

    in product mix.

    Continued

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    The United States claimed that MOFCOM's public notice of

    and Final Anti-Dumping and Countervailing Duty Determ

    inconsistent with the requirement in Articles 12.2 of the

    Agreement and 22.3 of the SCM Agreement to disclose th

    conclusions reached on all issues of fact and law consider

    the investigating authorities.

    The Panel upheld the claim with respect to the Final Dete

    exercised judicial economy with respect to th

    Determinations.

    Continued

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    The United States made an additional claim under Article

    Anti-Dumping Agreement and 22.5 of the SCM Agreement

    MOFCOM's failure to explain the reason for its rejectargument on levelof trade.

    The Panel rejected an objection by China that the claims

    terms of reference because they were not identified in t

    establishment of a panel, and upheld the US claim on the m

    Finally, WTO ruled in favor of the U.S. on August 02, 2

    standing trade dispute over allegations China unfairly

    dumping tariffs that restricted American poultry exports.

    Continued

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    Trade friction is channeled into the WTO's dispute settl

    where the focus is on interpreting agreements and comhow to ensure that countries' trade policies conform with th

    It ensures that the risk of disputes spilling over into polit

    conflict is reduced.

    By lowering trade barriers, the WTOs system also breabarriers between peoples and nations.

    U.S. Trade Representative, Michael Froman said the WTO

    victory for the U.S. and hopes it would prevent further vi

    American exporters.

    RESULT OF DISPUTE SETTLEMENT PROCESS B

    WTO

    REFERENCES

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    REFERENCES

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    m

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mhttp://www.commercialdiplomacy.org/manuals/wto_dispute.htmhttp://www.commercialdiplomacy.org/manuals/wto_dispute.htmhttp://www.commercialdiplomacy.org/manuals/wto_dispute.htmhttp://www.commercialdiplomacy.org/manuals/wto_dispute.htmhttp://www.commercialdiplomacy.org/manuals/wto_dispute.htmhttp://www.commercialdiplomacy.org/manuals/wto_dispute.htmhttp://www.commercialdiplomacy.org/manuals/wto_dispute.htmhttp://www.wto.org/english/thewto_e/whatis_e/inbrief_e/inbr00_e.htmhttp://www.wto.org/english/thewto_e/whatis_e/inbrief_e/inbr00_e.htmhttp://www.wto.org/english/thewto_e/whatis_e/inbrief_e/inbr00_e.htmhttp://www.wto.org/english/thewto_e/whatis_e/inbrief_e/inbr00_e.htmhttp://www.wto.org/english/thewto_e/whatis_e/inbrief_e/inbr00_e.htmhttp://www.wto.org/english/thewto_e/whatis_e/inbrief_e/inbr00_e.htmhttp://www.wto.org/english/thewto_e/whatis_e/inbrief_e/inbr00_e.htmhttp://www.wto.org/english/thewto_e/whatis_e/inbrief_e/inbr00_e.htmhttp://www.wto.org/english/thewto_e/whatis_e/inbrief_e/inbr00_e.htm