Dispute Settlement Reports 2002 : Volume 4, Pages 1387-1818

United States Anti-Dumping Measures on Certain Hot-Rolled Steel Products from Japan (WT/DS184) Award of the Arbitrator under Article 21.3(c) of the DSU 1389(14) United States Definitive Safeguard Measures on Imports of Circular Welded Carbon Quality Line Pipe from Korea (WT/DS202) Report of the Appellate Body 1403(70) I. INTRODUCTION AND FACTUAL BACKGROUND 1405(4) II. ARGUMENTS OF THE PARTICIPANTS AND THIRD PARTICIPANTS 1409(15) A. Claims of Error by the United States - Appellant 1409(4) 1. Necessity of a Discrete Determination Either of Serious Injury or of Threat of Serious Injury 1409(2) 2. Non-Attribution of the Injurious Effects of Other Factors to Increased Imports 1411(1) 3. Adequate Opportunity for Prior Consultations and Obligation to Endeavour to Maintain a Substantially Equivalent Level of Concessions 1412(1) 4. Exclusion of "de minimis" Developing Country Exporters from the Line Pipe Measure 1412(1) B. Arguments of Korea - Appellee 1413(1) 1. Necessity of a Discrete Determination Either of Serious Injury or of Threat of Serious Injury 1413(1) 2. Non-Attribution of the Injurious Effects of Other Factors to Increased Imports 1413(1) 3. Adequate Opportunity for Prior Consultations and Obligation to Endeavour to Maintain a Substantially Equivalent Level of Concessions 1414(1) 4. Exclusion of "de minimis" Developing Country Exporters from the Line Pipe Measure 1414(1) C. Claims of Error by Korea - Appellant 1414(3) 1. Article XXIV of the GATT 1994 1414(2) 2. "Parallelism" Between the Investigation and the Application of the Line Pipe Measure 1416(1) 3. The Requirement to Demonstrate a priori the Necessity of the Line Pipe Measure 1416(1) 4. The Proportionality of the Line Pipe Measure 1416(1) D. Arguments of the United States - Appellee 1417(3) 1. Article XXIV of the GATT 1994 1417(1) 2. "Parallelism" Between the Investigation and the Application of the Line Pipe Measure 1418(1) 3. The Requirement to Demonstrate a priori the Necessity of the Line Pipe Measure 1418(1) 4. The Proportionality of the Line Pipe Measure 1419(1) E. Arguments of the Third Participants 1420(42) 1. Australia 1420(1) 2. Canada 1420(1) 3. European Communities 1421(2) 4. Japan 1423(1) 5. Mexico 1423(1) III. ISSUES RAISED IN THIS APPEAL 1424(2) IV. INTRODUCTORY REMARKS 1426(2) V. ADEQUATE OPPORTUNITY FOR PRIOR CONSULTATIONS 1428(7) VI. OBLIGATION TO ENDEAVOUR TO MAINTAIN A SUBSTANTIALLY EQUIVALENT LEVEL OF CONCESSIONS AND OTHER OBLIGATIONS 1435(1) VII. EXCLUSION OF "DE MINIMIS" DEVELOPING COUNTRY EXPORTERS FROM THE LINE PIPE MEASURE 1436(4) VIII. NECESSITY OF A DISCRETE DETERMINATION EITHER OF SERIOUS INJURY OR OF THREAT OF SERIOUS INJURY 1440(10) IX. "PARALLELISM" BETWEEN THE INVESTIGATION AND THE APPLICATION OF THE LINE PIPE MEASURE 1450(6) X. NON-ATTRIBUTION OF THE INJURIOUS EFFECTS OF OTHER FACTORS TO INCREASED IMPORTS 1456(6) XI. THE APPLICATION OF THE LINE PIPE MEASURE: EXPRESS JUSTIFICATION AND PERMISSIBLE EXTENT 1462(9) A. The Express Justification of the Line Pipe Measure at the Time of Application 1463(2) B. The Permissible Extent of the Line Pipe Measure 1465(6) XII. FINDINGS AND CONCLUSIONS 1471(2) UNITED STATES DEFINITIVE SAFEGUARD MEASURES ON IMPORTS OF CIRCULAR WELDED CARBON QUALITY LINE PIPE FROM KOREA WT/DS202/R Report of the Panel 1473(338) Adopted by the Dispute Settlement Body on 8 March 2002 as modified by the Appellate Body Report I. INTRODUCTION 1477(1) A. Complaint of Korea 1477(1) B. Establishment and Composition of the Panel 1477(1) II. FACTUAL ASPECTS 1478(1) III. PARTIES' REQUESTS FOR FINDINGS AND RECOMMENDATIONS 1479(1) IV. ARGUMENTS OF THE PARTIES 1480(56) A. First Written Submission of Korea 1480(8) 1. Factual Background 1480(1) 2. Preliminary Legal Issues 1481(1) 3. The Safeguard Measure Is Inconsistent With the WTO 1482(3) 4. The ITC Investigation Was Not in Compliance With WTO Requirements 1485(3) 5. Procedural Legal Arguments 1488(1) 6. Conclusion 1488(1) B. First Written Submission of the United States 1488(10) 1. Factual Background 1488(1) 2. Substantive Argument 1489(8) 3. Procedural Arguments 1497(1) C. First Oral Statement of Korea 1498(5) 1. Factual Background 1498(1) 2. Preliminary Issues 1498(1) 3. Legal Arguments 1498(5) D. First Oral Statement of the United States 1503(4) 1. Increased Imports 1503(1) 2. Serious Injury 1503(1) 3. Causation 1504(1) 4. Threat 1505(1) 5. Putting the Safeguard Measure in Context 1505(1) 6. Korea has Failed to Establish that the Measure was Applied Beyond the Extent Necessary 1505(1) 7. Korea has Failed to Justify Application of Quota Disciplines to the Line Pipe Safeguard 1506(1) 8. Exclusion of Canada and Mexico from the Line Pipe Safeguard 1506(1) 9. Korea's Request for Confidential Information 1506(1) E. Second Written Submission of Korea 1507(12) 1. Preliminary Legal Issues 1507(1) 2. Legal Arguments 1508(10) 3. Procedural Legal Arguments 1518(1) 4. Conclusion 1519(1) F. Second Written Submission of the United States 1519(8) 1. Introduction 1519(1) 2. The Increased Imports Requirements of Articles 2.1 and 4.2(a) Were Satisfied 1519(1) 3. The ITC's Serious Injury Finding Fully Complies with Articles 3 and 4 of the Safeguards Agreement 1520(1) 4. The ITC's Causation Finding Fully Complied with Article 4 of the Safeguards Agreement 1521(3) 5. The United States Applied the Safeguard Measure on Terms Consistent with Articles 5 and 9 of the Safeguards Agreement and Articles I, XIII, and XIX 1524(3) G. Second Oral Statement of Korea 1527(5) 1. Introduction 1527(1) 2. The Safeguard Measure 1528(1) 3. The ITC Serious Injury Investigation 1529(3) H. Second Oral Statement of the United States 1532(4) 1. Burden of Proof and Standard of Review 1532(1) 2. Increased Imports 1532(1) 3. Serious Injury 1533(1) 4. Causation 1533(2) 5. There is no Requirement to Explain how Application of a Safeguard Measure Satisfies the Requirements of Article 5.1 1535(1) 6. Korea's Claim that the Line Pipe Safeguard Itself Does not Comply with Article 5.1 1535(1) V. ARGUMENTS OF THE THIRD PARTIES 1536(1) VI. INTERIM REVIEW 1536(4) A. The United States' Requests for Interim Review 1536(1) B. Korea's Requests for Interim Review 1537(3) VII. FINDINGS 1540(92) A. Preliminary Issues 1540(4) 1. Release of Confidential Record Information to the Panel 1540(4) 2. The Admissibility of Evidence not Submitted to the ITC, or Addressing Events After the Decision to Take a Safeguard Measure 1544(1) B. Claims Relating to the Line Pipe Measure 1544(49) 1. The Nature of the Measure 1545(2) 2. Claims under Article XIII 1547(11) 3. Claims under Articles 5 and 7 of the Safeguards Agreement and Article XIX of GATT 1994 1558(18) 4. Claims under Articles 3.1 and 4.2(c) 1576(2) 5. The Exclusion of Canada and Mexico - Articles XIII and XIX, and Article 2.2 1578(9) 6. The Exclusion of Canada and Mexico - Parallelism 1587(3) 7. The Exclusion of Developing Countries under Article 9 of the Safeguards Agreement 1590(3) C. Claims Relating to the Investigation 1593(39) 1. Increased Imports 1593(11) 2. Serious Injury 1604(16) 3. Threat of Serious Injury 1620(1) 4. Causal Link Between Increased Imports and Serious Injury or Threat of Serious Injury 1621(4) 5. Unforeseen Developments 1625(2) 6. Emergency Action 1627(1) 7. Procedural Issues 1628(4) VIII. CONCLUSIONS AND RECOMMENDATION 1632(179) Cumulative Index of Published Disputes 1811