Handbook on WTO Trade Remedy Disputes: The First Six Years (1995-2000) Book

	About the Authors	xiii
	Acknowledgments	xvii
	Introduction	1
Chapter I	Dispute Settlement Proceedings Concerning the Rules Agreements	11
A.	Summary of Dispute Settlement Provisions in the DSU and Rules Agreements	12
1.	Timeline for Panel/Appellate Body Review	12
2.	Dispute Settlement Provisions Governing Review of Rules Dispute	18
a.	DSU Dispute Settlement Provisions Governing Rules Agreements	18
b.	Rules Agreement Provisions Referencing the DSU and/or GATT Dispute Settlement Provisions	20
B.	Review of Consultations	22
C.	Executive Summary of Early Lessons in Rules Disputes	25
1.	General Issues Addressed in Rules Disputes	25
a.	Article 17.4 of the Antidumping Agreement	25
b.	DSU Article 3.8	25
c.	Article 17.6 of the Antidumping Agreement	26
d.	DSU Article 11	27
e.	DSU Article 13.1	29
2.	Issues Addressed in SCM Agreement Disputes	29
a.	Article 1 of the SCM Agreement	29
b.	Article 3.1 of the SCM Agreement	31
c.	Article 27 of the SCM Agreement	31
d.	Article 4.7 of the SCM Agreement	32
3.	Issues Addressed in Antidumping Agreement Disputes	33
a.	Article 5 of the Antidumping Agreement	33
b.	Article 2 of the Antidumping Agreement	34
c.	Article 3 of the Antidumping Agreement	35
d.	Article 6 of the Antidumping Agreement	36
e.	Article 11 of the Antidumping Agreement	36
f.	Specific Action Against Dumping	36
4.	Issues Addressed in Safeguards Agreement Disputes	37
a.	Article XIX of GATT 1994	37
b.	Article 2.2 of the Safeguards Agreement	37
c.	Article 4.1 of the Safeguards Agreement	38
d.	Articles 2.1 and 4.2 of the Safeguards Agreement	38
D.	General Issues Addressed in Rules Disputes	39
1.	Burden of Proof	40
a.	Brazil--Aircraft	42
b.	Korea--Dairy	43
c.	Indonesia--Auto Industry	43
d.	Thailand--H-Beams	44
e.	Presumption of Nullification or Impairment	44
f.	Rebutting the Presumption of Nullification or Impairment	47
2.	Standard and Scope of Review	48
a.	Article 17.6 of the Antidumping Agreement	48
b.	DSU Articles 11 and 17.6	53
c.	Applicability of WTO Agreements	59
d.	Judicial Restraint	66
e.	Review of Mandatory Requirements	68
f.	Judicial Economy	73
g.	Ex Post Justification	77
3.	Treaty Interpretation	78
a.	Interpretation of Treaty Terms	78
b.	General Principles of International Law	84
c.	Interpretation of Domestic Laws	85
4.	Consideration of Facts Pursuant to Article 17.5(ii) of the Antidumping Agreement	88
5.	Panel Fact-Finding Pursuant to DSU Article 13 and Treatment of Confidential Information	90
6.	Adverse Inferences for Failure to Supply Information Requested in Panel Proceedings	94
7.	Panel Composition	96
8.	Participation in Panel Proceedings	97
a.	Private Lawyers as Members of Delegation	98
b.	Participation by Observers	98
c.	Enhanced Third Party Rights	99
d.	Amici Curiae Briefs	100
9.	Exhaustion at the Panel Level	102
10.	Request for Termination of Panel	105
11.	Jurisdictional Issues Raised by the Scope of Requests for Consultations, Requests for Establishment, and the Panel's Terms of Reference	106
a.	United States--Stainless Steel (December 2000): Terms of Reference in Antidumping Case	118
b.	United States--Lamb Meat (December 2000): Specificity of Request Reference for Establishment and Terms of in Safeguards Case	119
c.	EC--Bed Linen (October 2000); Specificity of Request for Establishment in Antidumping Case	122
d.	Thailand--H-Beams (September 12000): Specificity of Request for Establishment in Antidumping Case	125
e.	United States--Wheat Gluten (July 2000): Specificity of Request for Establishment in Safeguards Case	129
f.	United States--AD Act (Japan) (May 2000): Specificity of Request for Establishment in Antidumping Case	129
g.	United States--AD Act (EC) (March 2000): Post Request for Establishment Reference to Treaty Provisions in Antidumping Case	133
h.	Mexico--HFCS (January 2000): Request for Establishment and Terms of Reference in Antidumping Case	134
i.	United States--Tax (October 1999): Request for Consultations and Terms of Reference in Subsidies Case	138
j.	Argentina--Footwear (June 1999): Effect of Post-Request for Establishment Modification of Measure on Terms of Reference in Safeguards Case	141
k.	Korea--Dairy (June 1999): Specificity of Request for Establishment in Safeguards Case	143
l.	Australia--Leather (May 1999): Specificity of Requests for Consultations and Establishment in Subsidies Case	145
m.	Canada--Aircraft (April 1999): Specificity of Requests for Consultations and Establishment in Subsidies Case	147
n.	Brazil--Aircraft (April 1999): Post-Consultation Modification of Measure in Subsidies Case	148
o.	Indonesia--Auto Industry (July 1998): Termination of Measures and Terms of Reference in Subsidies Case	150
p.	Guatemala--Cement 1 (June 1998): Specificity of Request for Establishment in Antidumping Case	151
q.	Brazil--Coconut (October 1996): Terms of Reference in Subsidies Case	153
E.	Agreement-Specific Issues Addressed in Rules Dispute	155
1.	SCM Agreement Issues	162
a.	Interpretation of "Financial Contribution" Under Article 1.1(a) of the SCM Agreement	173
b.	Interpretation of "Benefit" Under Article 1.1(b) of the SCM Agreement	183
c.	Determination of Prima Facie Case of Subsidy Under Article 1 of the SCM Agreement	190
d.	Determination of Export Subsidy Under Article 3.1(a) of the SCM Agreement	194
e.	Determination of Prohibited Import Substitution Subsidy Under Article 3.1(b) of the SCM Agreement	203
f.	Determination of Serious Prejudice Under Article 6 of the SCM Agreement	206
g.	The Prohibition Against Countervailing Duties "In Excess" of the Amount of Subsidy Under Article 10 of the SCM Agreement	212
h.	Calculation of the Amount of Subsidy Pursuant to Article 14 of The SCM Agreement	212
i.	Claims Under Article 27.4 of the SCM Agreement on Developing Countries	213
j.	Subsidies Linked to Privatization Programs Under Article 27.13 of the SCM Agreement	218
k.	Claims Under Articles 28 of the SCM Agreement on Existing Programs	219
l.	Item (k) of the SCM Agreement's Illustrative List of Export Subsidies	219
2.	Antidumping Agreement Issues	221
a.	Initiation Requirements Under Antidumping Agreement	233
b.	Determination of Normal Value Pursuant to Article 2 of the Antidumping Agreement	250
c.	Calculation of Dumping Margin Pursuant to Article 2.4 of the Antidumping Agreement	258
d.	Injury Determinations Pursuant to Article 3 of the Antidumping Agreement	268
e.	Evidence Under Article 6 of the Antidumping Agreement	291
f.	Provisional Measures Under Article 7.4 of the Antidumping Agreement	305
g.	Possibility of "Constructive Remedies" Under Article 15 of the Antidumping Agreement for Developing Country Members	305
h.	Retroactive Duties Under Article 10 of the Antidumping Agreement	307
i.	Notice of Final Determination Requirements Under Article 12.2 of the Antidumping Agreement	308
j.	Revocation of Antidumping Duty Orders	310
k.	De Minimis Requirements in Administrative Reviews of Anti-dumping Duty Orders	312
l.	Consistency of Domestic Law With the WTO Agreement	313
m.	Administration of Domestic Law Consistent With Article X:3(a) of GATT 1994	322
3.	Safeguards Agreement Issues	323
a.	Claims Under Article XIX of GATT 1994 and the Safeguards Agreements	331
b.	Period of Investigation in Safeguards Cases	341
c.	The Role of Customs Unions or Free TradeAreas Under Footnote 1 to Article 2.1 of the Safeguards Agreement	342
d.	Import Volume Determinations Under Article XIX:1(a) of GATT 1994 and Articles 2.1 and 4.2 of the Safeguards Agreement	348
e.	Definition of Domestic Industry Under Article 4.1(c) of the Safeguards Agreement	352
f.	Serious Injury Determinations Under Article 4.2 of the Safeguards Agreement	359
g.	Threat of Serious Injury Determinations Under Articles 4.1(b) and 4.2(a) of the Safeguards Agreement	367
h.	Causation Under the Safeguards Agreement	370
i.	Safeguard Measures Under Article 5.1 of the Safeguards Agreement	379
j.	Notifications and Consultations Regarding Safeguard Measures	380
Chapter II	Resolution of Rules Disputes	389
A.	Summary of Outcomes	389
1.	Limits on Suggestions Under DSU Article 19.1	394
2.	Time Limits for Implementation of Recommendations and Rulings	395
B.	Recourse to Article 21.5 for Implementation Disagreements in Rules Disputes	399
1.	Implementation Disagreements in Subsidies Cases	401
a.	Australia--Leather	401
b.	Brazil--Aircraft	404
c.	Canada--Aircraft	414
2.	Implementation Disagreements in Antidumping Cases	422
C.	Recourse to DSU Article 22.6 Arbitration Regarding Suspension of Concessions or Other Obligations in Rules Disputes	423
1.	Treaty Provisions Referring to Arbitration Under DSU Article 22.6	423
2.	Rules Disputes Resulting in Arbitration Under DSU Article 22.6	426
a.	Brazil--Aircraft	426
Chapter III	Review of Dispute Settlement Proceedings Concerning Other Trade Remedies	435
A.	Jurisdictional Issues Raised by the Scope of Requests for Establishment and the Panel's Terms of Reference	435
1.	United States--Import Measures	435
a.	Request for Establishment	435
b.	The Panel's Terms of Reference	438
B.	Important Issues Addressed in Panel or Appellate Body Decisions Concerning Other Trade Remedies	441
1.	WTO Disputes Involving Sections 301-10 of the U.S. Trade Act of 1974	446
a.	Compliance With DSU Article 23 When Seeking Redress	446
2.	WTO Disputes Involving Certain U.S. Import Measures	454
a.	Compliance With DSU Article 23 When Seeking Redress	457
3.	WTO Disputes Involving Section 337 of the U.S. Tariff Act of 1930	468
4.	WTO Disputes Involving Section 306 of the U.S. Trade Act of 1974	469
Chapter IV	Questions Raised by WTO Decisions in Trade Remedy Disputes	471
	Conclusion	481
Annex A	Citations to WTO Trade Remedy Disputes	487
Annex B	Actual Timelines for Dispute Settlement	491
Annex C	Dispute Settlement Provisions in the Rules Agreements	505
Annex D	Disputes Involving SCM, Antidumping, and Safeguarding Agreements	525
Annex E	Excerpts from the Vienna Convention on the Law of Treaties	543
	Bibliography	545
	Index	551