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REGULAR MEETING OF THE DISPUTE SETTLEMENT BODY, 25 NOVEMBER 2024

Statements made by Mr. Davide Grespan, Minister-Counsellor and Mr. Victor García-Lopez-Berges, Attaché.

AGENDA POINT 1: SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

1.2.    UNITED STATES – SECTION 110(5) OF THE US COPYRIGHT ACT: STATUS REPORT BY THE UNITED STATES (WT/DS160/24/ADD.229)

  • We thank the United States for its status report and its statement today.
  • We refer to our previous statements. We would like to resolve this case as soon as possible.

AGENDA POINT 1: SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

1.3.         EUROPEAN COMMUNITIES – MEASURES AFFECTING THE APPROVAL AND MARKETING OF BIOTECH PRODUCTS: STATUS REPORT BY THE EUROPEAN UNION (WT/DS291/37/ADD.192)

  • We recall that the EU approval system is not covered by the DSB’s recommendations and rulings.
  • On 29 October the Commission presented for vote to the Appeal Committee a decision authorising the placing on the market of a GM maize (1). The vote taken during the meeting resulted in ‘no opinion’. It is now for the Commission to decide on the adoption.
  • On 22 November the Commission presented for votes to the Standing Committee two decision authorising the placing on the market of two GM maize (2). The votes taken during the meeting result in ‘no opinion’. The decision will be referred to the Appeal Committee.

([1]) GM maize MON 94804

(2) GM maize MON 95275 and DP910521

AGENDA POINT 3: EUROPEAN UNION – ANTI-DUMPING MEASURES ON IMPORTS OF FATTY ACID FROM INDONESIA

REQUEST FOR THE ESTABLISHMENT OF A PANEL BY INDONESIA (DS622)

  • The European Union takes note of Indonesia's decision to request a WTO panel on Anti-Dumping Measures on Imports of Fatty Acid from Indonesia.
  • The European Union held constructive consultations with Indonesia and had hoped that the consultations provided the necessary information and clarifications.
  • Indonesia is of course entitled to bring this matter to dispute settlement in the WTO, but the European Union firmly believes that the measures at stake are fully justified.
  • For these reasons, the European Union is confident that it will prevail in this dispute, and that its actions will be declared in line with WTO law.
  • In today’s meeting, the European Union is not ready to accept the establishment of a panel.
  • Finally, the EU also reiterates the invitation to Indonesia to join the the multi-party interim appeal arbitration arrangement (MPIA). As long as the Appellate Body is not functioning, the MPIA preserves the essential principles and features of the WTO dispute settlement system which include its binding character and two levels of adjudication through an independent and impartial appellate review of panel reports. Thereby, the MPIA preserves the rights and obligations of parties to a dispute under the WTO Agreement.

AGENDA POINT 4: COLOMBIA – ANTI-DUMPING DUTIES ON FROZEN FRIES FROM BELGIUM, GERMANY AND THE NETHERLANDS

RECOURSE TO ARTICLE 21.5 OF THE DSU BY THE EUROPEAN UNION: REQUEST FOR THE ESTABLISHMENT OF A PANEL (DS591)

  • The European Union requests the establishment of an Article 21.5 panel in this dispute.
  • The EU regrets that it still needs to litigate this matter despite the Panel report and the appeal arbitration award under Article 25 DSU found that in its investigation on imports of frozen fries from Belgium, the Netherlands and Germany, Colombia did not comply with the provisions of the Anti-dumping agreement.
  • Colombia claims to have complied with the Panel report and arbitration award through a Ministerial Resolution issued on 21 November 2023. The EU disagrees with this statement.
  • While the EU agrees that Colombia implemented some of the findings, the EU considers that Colombia recalculated the dumping margins using flawed methodologies resulting in artificially inflated dumping margins for the EU exporting producers
  • As a result, on 31 May 2024 the EU requested consultations with Colombia on the implementation measures taken to comply with the Panel report and the arbitration award.
  • The EU regrets that the consultations did not result in a resolution of the dispute.
  • The EU expects Colombia to cooperate with the EU and the panel in order to ensure a swift conclusion of the compliance procedure.

AGENDA POINT 5: UNITED STATES – ANTI-DUMPING AND COUNTERVAILING DUTIES ON RIPE OLIVES FROM SPAIN

RECOURSE TO ARTICLE 22.2 OF THE DSU BY THE EUROPEAN UNION (DS577)

  • The compliance Panel report was adopted 27 March 2024 and it confirmed that the US has not correctly implemented the Panel’s findings on Section 771B of the Tariff Act of 1930.
  • The EU regrets that, even after the adoption of the compliance Panel report, the US has not taken any step to redress this situation, despite numerous interventions of the EU at political level.
  • In light of this, the EU has no other choice than to request authorisation to suspend the application to the United States of concessions or other obligations under the agreements listed in Annex 1A of the WTO Agreement according to Article 22.2 DSU in order to make the US fully implement the recommendation of the Panel to bring its measures into compliance.
  • The EU notes the US request for referral to arbitration regarding this dispute. In line with the terms of the sequencing agreement of 13 February 2023, the EU looks forward to cooperating with the United States to enable the arbitrator under Article 22.6 of the DSU to circulate its decision within 60 days of the referral to arbitration.

AGENDA POINT 7: APPELLATE BODY APPOINTMENTS

  • The European Union refers to its previous statements on this issue and thanks all Members that have co-sponsored the proposal to launch the appointment processes.
  • Since 11 December 2019, the WTO no longer guarantees access to a binding, two-tier, independent and impartial resolution of trade disputes.
  • A fully functioning WTO dispute settlement system is crucial. That is evidenced by the large number of Members co-sponsoring the present proposal.
  • We believe that restoring a fully functioning dispute settlement system and appointing members of the Appellate Body is a key priority. At MC13, it was clear that the overwhelming majority of the Membership shares this view.
  • We welcome the progress that has already been achieved to date in dispute settlement discussions. Members have made substantial efforts to reform the system to address the interests and concerns that were raised. However, the system is still not functioning fully.
  • In the meantime, we are concerned with the impact that the absence of a fully functioning dispute settlement system is having on the international trading order. In that context, the MPIA has been put in place as an interim arrangement to preserve a fully functioning dispute settlement system among its participants and to support rule-based trade. The MPIA is open to any WTO Member and we invite any WTO Member to join as long as a solution to this impasse has not been found.

Ukraine / Russia

  • The EU reiterates its resolute condemnation of Russia’s war of aggression against Ukraine, which constitutes a manifest violation of the UN Charter, and reaffirms its continued support for Ukraine’s independence, sovereignty and territorial integrity within its internationally recognised borders.
  • It also reconfirms the European Union’s unwavering commitment to providing continued political, financial, economic, humanitarian, military and diplomatic support to Ukraine and its people.