wto rulings
TRANSCRIPT
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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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