The World Trading System Selected trade disputes

THE GM DISPUTE At issue Alleged moratorium on EC approval of biotech products from Oct.1998 – August Several EC national level bans on the import and marketing of biotech products. Outcome WTO recognition of the existence of a de facto moratorium though not considered a measure in itself. WTO ruling that the general and product specific moratoria resulted in undue delays in the completion of EC approval procedures in violation of the SPS Agreement ( Art. 8 and Annex C). WTO also rules that the EC member state bans ( ‘precautionary’ measures) violate the SPS Agreement because the measures are not based on risk assessments satisfying the definition of the SPS and could be thus presumed to be maintained without sufficient scientific evidence. Practical outcome limited since EC had resumed approval process when Panel was established. Panel did not rule on the general legality of the EC approval procedures or safety of biotech products. Question Not a case of simple protectionism but of politics and consumer issues- a clash of cultures? Not a case of simple protectionism but of politics and consumer issues- a clash of cultures?

THE BANANA WARS At issue: the EC banana import regime. An EC wide system of quotas and licenses that gave preferential treatment to banana imports from ACP countries and EC territories while restricting imports from non-ACP countries, essentially Latin American countries. Outcome 1997 WTO DSB rules that the EC regime violates the GATT, GATS. Delays in EC implementation result in U.S. retaliation, authorized by the DSB in April, Finally a negotiated solution ends U.S. retaliation in Finally a negotiated solution ends U.S. retaliation in A solution of sorts A modified TRQ would remain as a transitional scheme with quota increases for Latin American bananas and allocation of licenses on import levels from A tariff only scheme to come into effect on January 1, EC obtains a WTO waiver at Doha for its preferential quota for ACP bananas. In 2005 with negotiations failing on what the tariff only rate should be, the EC unilaterally sets the tariff at 176/mt and establishes a 775,000 ton duty free quota for ACP countries. Continuing implementation issues in 2007 Ecuador – request for Panel to examine WTO consistency of EC implementation. Columbia- request for Panel to examine WTO consistency of the present banana import regime.

Battle of the Jumbos At stake  EC member states’ financing for design and development and “launch aid” to Airbus, infrastructure aid to Airbus A380 manufacturing sites, debt forgiveness by Euro governments, and other financial contributions to Airbus.  U.S. federal, state and local subsidies, research/development grants through NASA/DoD, state tax concessions and military contracts to Boeing. Subsidies from both run into the double digit billions. Both sides allege violation of the WTO rules on export subsidies and domestic subsidies and claim adverse effects to their respective interests as a result. A protracted dispute and not a new one… Parties using the WTO dispute settlement system to exert pressure for a negotiated solution? No clear winner and no major changes?

Benefits for Business Benefits to exporters of goods and services Benefits to exporters of goods and services - stability of access - security of access Rights conferred on the business community Rights conferred on the business community - rights of domestic producers and importers - rights of exporting enterprises Effective use of WTO dispute settlement procedures Effective use of WTO dispute settlement procedures Influencing the course of negotiations Influencing the course of negotiations Taking advantage of trade concessions Taking advantage of trade concessions