Dispute Settlement Reports 2001 : Volume 13, Pages 6479-6953

United States - Import Prohibition of Certain Shrimp and Shrimp Products - Recourse to Article 21.5 of the DSU by Malaysia (WTIDS58) Report of the Appellate Body 6481(1) I. INTRODUCTION 6482(3) II. ARGUMENTS OF THE PARTICIPANTS AND THE THIRD PARTICIPANTS 6485(14) A. Claims of Error by Malaysia - Appellant 6485(4) 1. Terms of Reference 6485(1) 2. The Chapeau of Article XX of the GATT 1994 6486(3) B. Arguments of the United States - Appellee 6489(4) 1. Terms of Reference 6489(1) 2. The Chapeau of Article XX of the GATT 1994 6490(3) C. Arguments of the Third Participants 6493(16) 1. Australia 6493(1) 2. European Communities 6494(1) 3. Hong Kong, China 6495(1) 4. India 6496(1) 5. Japan 6497(1) 6. Mexico 6497(1) 7. Thailand 6498(1) III. PRELIMINARY PROCEDURAL MATTER 6499(1) IV. ISSUES RAISED IN THIS APPEAL 6499(2) V. TERMS OF REFERENCE 6501(8) VI. THE CHAPEAU OF ARTICLE XX OF THE GATT 1994 6509(17) A. The Nature and the Extent of the Duty of the United States to Pursue International Cooperation in the Protection and Conservation of Sea Turtles 6511(9) B. The Flexibility of the Revised Guidelines 6520(6) VII. FINDINGS AND CONCLUSIONS 6526(3) Report of the Panel 6529(3) I. INTRODUCTION 6532(2) A. Terms of Reference 6533(1) B. Panel Composition 6534(1) II. FACTUAL ASPECTS 6534(10) A. Conservation Issues 6534(2) B. History of the Case 6536(4) 1. Section 609: the 1996 Guidelines 6536(2) 2. Panel Proceedings 6538(2) C. Reasonable Period of Time 6540(1) D. Implementation 6540(4) 1. Section 609: the 1999 Revised Guidelines 6540(4) III. MAIN ARGUMENTS OF THE PARTIES 6544(49) A. Procedural Issues 6544(6) 1. Terms of Reference 6544(1) 2. Submissions from Non-Governmental Organizations 6545(2) 3. Burden of Proof 6547(3) B. Violation of Article XI 6550(1) C. Justification under Article XX 6551(42) 1. General Comments 6551(1) 2. Article XX(g) 6552(2) 3. Chapeau 6554(66) (a) General Compliance Issues 6554(3) (b) Unjustifiable Discrimination 6557(30) (i) Cumulative Assessment of the Aspects Found to Constitute Unjustifiable Discrimination 6557(1) (ii) Efforts to Negotiate and Whether a WTO Member is Obliged to Seek or Obtain International Consensus 6558(1) (a) Efforts to Negotiate 6558(1) (b) Whether a WTO Member is Obliged to Seek or Obtain International Consensus Before Resorting to the Measure at Issue 6566(7) (iii) Other Aspects 6573(1) (a) Consideration of the Situation of Exporting Countries in the Revised Guidelines 6573(1) (b) The Ruling of the United States Court of International Trade 6581(1) (c) Technical Assistance 6584(1) (d) Phase-in Period 6586(1) (c) Arbitrary Discrimination 6587(5) (a) Lack of Flexibility 6587(3) (b) Due Process 6590(2) (d) Disguised Restriction on International Trade 6592(1) IV. SUMMARY OF THIRD PARTY SUBMISSIONS 6593(25) 1. Australia 6593(5) 2. Ecuador 6598(1) 3. European Communities 6599(6) 4. Hong Kong, China 6605(1) 5. India 6606(1) 6. Japan 6607(1) 7. Mexico 6608(5) 8. Thailand 6613(5) V. FINDINGS 6618(45) A. General Approach to the Issues Before the Panel 6618(2) B. Preliminary Issues 6620(5) 1. Terms of Reference of the Panel 6620(2) 2. Date on which the Panel Should Assess the Facts 6622(1) 3. Admissibility of Submissions from Non-Governmental Organizations 6622(1) 4. Burden of Proof 6623(2) C. Violation of Article XI:1 of the GATT 1994 6625(1) D. Application of Article XX of the GATT 1994 6625(54) 1. Preliminary Remarks 6625(3) 2. Consistency of the Implementing Measure with Paragraph (g) of Article XX of the GATT 1994 6628(2) 3. Arbitrary or Unjustifiable Discrimination Between Countries where the Same Conditions Prevail: the Question of International Negotiations 6630(15) (a) Extent of the US Obligation to Negotiate and/or Reach an International Agreement on the Protection and Conservation of Sea Turtles 6630(12) (i) Abuse or Misuse of Rights under Article XX as a Standard for Determining the Extent of an Obligation to Negotiate and/or Enter into an International Agreement 6630(7) (ii) Obligation to Negotiate v. Obligation to Reach an International Agreement 6637(2) (iii) The Inter-American Convention as a Benchmark of Serious Good Faith Efforts in this Case 6639(3) (iv) Conclusion 6642(1) (b) Assessment of the Consistency of the Implementing Measure 6642(3) (i) Serious Good Faith Efforts by the End of the Reasonable Period of Time 6642(1) (ii) Serious Good Faith Efforts as of the Date the Matter Was Referred to this Panel 6643(2) (c) Conclusion 6645(1) 4. Other Requirements Related to Arbitrary or Unjustifiable Discrimination Between Countries where the Same Conditions Prevail 6645(16) (a) Claims Relating to the Findings of "unjustifiable discrimination" in the Appellate Body Report 6645(12) (i) Introduction 6645(1) (ii) The Insufficient Flexibility of the 1996 Guidelines, in Particular the Absence of Consideration of the Different Conditions that May Exist in the Territories of Exporting Nations 6646(6) (iii) The Prohibition of Importation of Shrimp Caught in Uncertified Countries, Including when that Shrimp Had Been Caught Using Teds 6652(2) (iv) Phase-in Period 6654(2) (v) Transfer of Technology 6656(1) (b) Claims Relating to "arbitrary discrimination" 6657(4) (i) Lack of Flexibility 6657(2) (ii) Due Process 6659(2) (c) Conclusion 6661(1) 5. Disguised Restriction on International Trade 6661(2) VI. CONCLUSIONS 6663(1) VII. CONCLUDING REMARKS 6664(1) ANNEX: REVISED GUIDELINES PURSUANT TO SECTION 609, 8 JULY 1999 6665(10) Mexico - Anti-Dumping Investigation of High Fructose Corn Syrup (HFCS) from the United States - Recourse to Article 21.5 of the DSU by the United States (WT/DS132) Report of the Appellate Body 6675(1) I. INTRODUCTION 6676(3) II. ARGUMENTS OF THE PARTICIPANTS AND THE THIRD PARTICIPANT 6679(7) A. Claims of Error by Mexico - Appellant 6679(3) 1. The Panel's Treatment of Alleged Deficiencies in the Proceedings 6679(1) 2. Article 3 of the Anti-Dumping Agreement: "Threat of Material Injury" 6680(2) 3. Article 12.7 of the DSU and Article 17.6 of the Anti-Dumping Agreement: "Reasoning of the Panel" 6682(1) B. Arguments of the United States - Appellee 6682(3) 1. The Panel's Treatment of Alleged Deficiencies in the Proceedings 6682(1) 2. Article 3 of the Anti-Dumping Agreement: "Threat of Material Injury" 6683(1) 3. Article 12.7 of the DSU and Article 17.6 of the Anti-Dumping Agreement: "Reasoning of the Panel" 6684(1) C. Arguments of the Third Participant 6685(2) 1. European Communities 6685(1) III. ISSUES RAISED IN THIS APPEAL 6686(1) IV. THE PANEL'S TREATMENT OF ALLEGED DEFICIENCIES IN THE PROCEEDINGS 6687(11) A. Mexico's Conduct Before the Panel and the Consequences 6688(4) B. The Nature of Mexico's "Objections" 6692(6) V. ARTICLE 3 OF THE ANTI-DUMPING AGREEMENT: "THREAT OF MATERIAL INJURY" 6698(9) A. Likelihood of Increased Imports 6698(7) B. Likely Impact of Imports on the Domestic Industry 6705(2) VI. ARTICLE 12.7 OF THE DSU AND ARTICLE 17.6 OF THE ANTI-DUMPING AGREEMENT: "REASONING OF THE PANEL" 6707(8) A. Article 12.7 of the DSU: "Basic Rationale" 6707(5) 1. The Panel's Finding Concerning Article 3.4 of the Anti-Dumping Agreement 6709(2) 2. The Panel's Finding Concerning Article 3.1 of the Anti-Dumping Agreement 6711(1) B. Article 17.6(ii) of the Anti-Dumping Agreement: "Permissible Interpretation" 6712(3) VII. FINDINGS AND CONCLUSIONS 6715(2) Report of the Panel 6717(2) I. INTRODUCTION AND FACTUAL BACKGROUND 6719(2) II. FINDINGS AND RECOMMENDATIONS REQUESTED BY THE PARTIES 6721(1) III. MAIN ARGUMENTS OF THE PARTIES 6721(49) A. First Written Submission of the United States 6721(9) 1. SECOFI Disregarded the Panel's Conclusion that it Made an Insufficient Finding of the Likelihood of Increased Imports 6723(3) 2. SECOFI did not Address the DSB's Rulings Regarding the Analysis of the Likely Impact of the Dumped Imports 6726(3) 3. SECOFI did not Adequately Explain its Analysis in Critical Respects 6729(1) B. First Written Submission of Mexico 6730(9) 1. Introduction 6730(2) 2. Mexico has Complied with the Recommendations and Rulings of the Dispute Settlement Body 6732(7) (a) SECOFI Has Examined the Probable Impact of HFCS Imports on the Domestic Industry and Has Determined Threat of Injury on the Basis of the Industry as a Whole 6732(2) (b) SECOFI Has Analysed the Potential Effects of the Alleged Restraint Agreement on the Likelihood of Substantially Increased Importation in a Manner Consistent with Article 3.7(I) of the AD Agreement 6734(3) (c) Mexico Has Complied with the Provisions of Articles 12.2 and 12.2.2 of the AD Agreement 6737(2) 3. Conclusion 6739(1) C. Second Written Submission of the United States 6739(3) 1. SECOFI's Finding of Likelihood of Increased Imports was Based on Conjecture Rather than Evidence 6740(1) 2. SECOFI did not Adequately Analyze the Likely Impact of the Dumped Imports 6741(1) 3. SECOFI did not Adequately Explain its Analysis in Critical Respects 6742(1) D. Second Written Submission of Mexico 6742(14) 1. Introduction 6742(2) 2. Mexico Complied with the Conclusions and Recommendation of the Panel and the Dispute Settlement Body 6744(12) (a) SECOFI Examined the Probable Impact of HFCS Imports on the Domestic Industry and has Determined Threat of Injury on the Basis of the Industry as a Whole 6744(4) (b) SECOFI Analysed the Potential Effects of the Alleged Restraint Agreement on the Likelihood of Substantially Increased Importation, in a Manner Consistent with Article 3.7(I) of the AD Agreement 6748(4) (c) Mexico Complied with the Provisions of Articles 12.2 and 12.2.2 of the AD Agreement 6752(4) 3. Conclusions 6756(1) E. Oral Statement of the United States 6756(7) 1. The Restraint Agreement and Article 3.7(i) 6757(3) 2. Analysis of Likely Impact and Article 3.4 6760(3) 3. Notice and Article 12 6763(1) F. Oral Statement of Mexico 6763(7) 1. SECOFI Examined the Probable Impact of Corn Syrup (HFCS) Imports on the Domestic Industry and Determined Threat of Injury on the Basis of the Industry as a Whole 6764(3) 2. Effects of the Restraint Agreement on the Likelihood of Substantially Increased Importation 6767(1) 3. Mexico Complied with the Provisions of Articles 12.2 and 12.2.2 of the AD Agreement 6768(2) 4. Conclusion 6770(1) IV. ARGUMENTS OF THE THIRD PARTIES 6770(4) A. Oral Statement of the European Communities 6770(2) B. Joint Statement of Jamaica and Mauritius 6772(2) V. INTERIM REVIEW 6774(2) VI. FINDINGS 6776(17) A. Introduction 6776(2) B. Finding of Likelihood of Increased Imports 6778(8) C. Analysis of Likely Impact of Imports on the Domestic Industry 6786(6) D. Adequacy of Notice of Redetermination 6792(1) VII. CONCLUSIONS AND RECOMMENDATION 6793(2) ANNEX A ANSWERS OF MEXICO TO QUESTIONS FROM THE PANEL 6795(28) ANSWERS OF THE UNITED STATES TO QUESTIONS FROM THE PANEL 6823(6) COMMENTS BY THE UNITED STATES ON NEW FACTUAL INFORMATION SUBMITTED BY MEXICO A-6826 Canada - Measures Affecting the Importation of Milk and the Exportation of Dairy Products - Recourse to Article 21.5 of the DSU by New Zealand and the United States (WT/DS103, WT/DS113) Report of the Appellate Body 6829(1) I. INTRODUCTION 6830(3) II. ARGUMENTS OF THE PARTICIPANTS AND THIRD PARTICIPANT 6833(12) A. Claims of Error by Canada - Appellant 6833(4) 1. Article 9.1(c) of the Agreement on Agriculture - "payments" 6833(1) 2. Article 9.1(c) of the Agreement on Agriculture - "financed by virtue of governmental action" 6834(3) 3. Article 10.1 of the Agreement on Agriculture and Article 3.1 of the SCM Agreement 6837(1) B. Arguments of New Zealand - Appellee 6837(2) 1. Article 9.1(c) of the Agreement on Agriculture - "payments" 6837(1) 2. Article 9.1(c) of the Agreement on Agriculture - "financed by virtue of governmental action" 6838(1) 3. Article 10.1 of the Agreement on Agriculture 6839(1) C. Arguments of the United States - Appellee 6839(4) 1. Article 9.1(c) of the Agreement on Agriculture - "payments" 6840(1) 2. Article 9.1(c) of the Agreement on Agriculture - "financed by virtue of governmental action" 6841(2) 3. Article 10.1 of the Agreement on Agriculture and Article 3.1 of the SCM Agreement 6843(1) D. Arguments of the European Communities - Third Participant 6843(2) 1. Article 9.1(c) of the Agreement on Agriculture - "payments" 6844(1) 2. Article 9.1(c) of the Agreement on Agriculture - "financed by virtue of governmental action" 6844(1) III. ISSUE RAISED IN THIS APPEAL 6845(1) IV. ARTICLE 9.1(C) OF THE AGREEMENT ON AGRICULTURE 6845(16) A. "Payments" 6846(11) B. "Financed by Virtue of Governmental Action" 6857(4) V. ARTICLE 10.1 OF THE AGREEMENT ON AGRICULTURE 6861(1) VI. ARTICLE 3.1 OF THE SCM AGREEMENT 6862(1) VII. FINDINGS AND CONCLUSIONS 6863(2) Report of the Panel 6865(2) I. INTRODUCTION 6867(2) (i) Terms of Reference 6869(1) (ii) Composition of Panel 6869(1) II. PRELIMINARY RULINGS 6869(11) 1. Canada's Request Concerning Business Confidential Information 6869(6) (i) The Panel's Decision 6873(2) 2. The European Communities Request Concerning Access to the Rebuttals for Third Parties 6875(7) (i) The Panel's Decision 6878(2) III. FACTUAL ASPECTS 6880(2) (i) Previous System 6880(1) (ii) Previous Panel and Appellate Body Judgements 6880(1) (iii) Canada's Implementation Measures 6881(1) (iv) Regulatory Amendments at the Provincial Level 6882(1) IV. MAIN ARGUMENTS 6882(26) 1. Burden of Proof 6882(1) 2. General 6883(9) 3. Article 9(1)(c) of the Agreement on Agriculture 6892(8) (i) "payments" 6892(4) (ii) "financed by virtue of governmental action" 6896(4) 4. Article 10.1 of the Agreement on Agriculture 6900(7) 5. Articles 3.3 and 8 of the Agreement on Agriculture 6907(1) 6. Articles 1 and 3 of the SCM Agreement 6907(1) V. THIRD PARTIES ARGUMENTS 6908(7) A. Australia 6908(4) 1. General 6908(1) 2. Article 9.1 (c) of the Agreement on Agriculture 6909(1) (i) "payments" 6909(1) (ii) "financed by virtue of governmental action" 6909(1) 3. Article 3 and 8 of the Agreement on Agriculture 6910(1) 4. Article 10.1 of the Agreement on Agriculture 6910(1) 5. Article 3 of the SCM Agreement 6911(1) B. European Communities 6912(3) 1. Article 9.1 (c) of the Agreement on Agriculture 6912(1) (i) "financed by virtue of governmental action" 6912(1) 2. Article 10.1 of the Agreement on Agriculture 6913(2) VI. FINDINGS 6915(36) A. Agreement on Agriculture 6915(20) 1. Burden of Proof 6915(2) 2. Article 9.1(c) 6917(25) (a) Introduction 6917(1) (b) "Payments" 6917(10) (c) "Financed by Virtue of Governmental Action" 6927(16) (i) Arguments by the Parties 6927(1) (ii) Textual and Contextual Analysis of "financed by virtue of' 6928(2) (iii) General Analysis by the Panel 6930(4) (iv) Does Governmental Action Prevent Canadian Producers from Selling Milk Produced Outside their Quota on the Domestic Market? 6934(1) (v) Does Governmental Action Oblige Canadian Milk Processors to Export All Milk Contracted as Commercial Export Milk, and, Accordingly, Penalize the Diversion of Commercial Export Milk to the Domestic Market? 6935(1) The Federal Dairy Products Marketing Regulations 6935(3) Provincial Measures 6938(1) Quebec 6939(1) Ontario 6939(3) Other Canadian Milk-Exporting Provinces 6942(5) (vi) Conclusion 6943(1) (d) Payment "on the export of an agricultural product" 6943(1) (e) Conclusion Regarding Article 9.1(c) 6944(1) 3. Article 3.3 6944(1) 4. Article 10.1 6945(2) 5. Article 8 6947(1) B. SCM Agreement 6947(4) VII. CONCLUSIONS AND RECOMMENDATIONS 6951(1) VIII. ANNEX 6952 1. Abbreviations Used for Dispute Settlement Cases Referred to in the Report 6952