Crime and punishment: Retaliation under the world trade organization dispute settlement system

Journal of World Trade

Volumn 39, Issue 2, 2005, Pages 327-340

  Jürgensen, Thomas ^a  

^a EUROPEAN COMMISSION   (Belgium)

Author keywords

[No Author keywords available]

Indexed keywords

CONFLICT MANAGEMENT; REGULATORY APPROACH; WORLD TRADE ORGANIZATION;

EID: 33644617962     PISSN: 10116702     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Review

References (47)

1. Article 22.2 of the DSU. Note the special provision under Article 4.10 of the SCM Agreement whereby "the DSB shall grant authorization to the complaining Member to take appropriate countermeasures".
2. United States - Continued Dumping and Subsidy Offset Act of 2000, WT/DS217/ARB, WT/DS234/ARB, 31 August 2004;
3. the arbitrators issued eight different reports. While to a large extent similar in wording, this commentary is, for ease of reference, based on the award in the case opposing the United States and the European Communities (hereinafter referred to as US - Offset Act (Byrd Amendment)(EC)(Article 22.6 - US)). Under the Byrd Amendment, or "Continued Dumping and Subsidy Offset Act", the United States distributes each year anti-dumping and countervailing duties to its domestic industry for certain qualified expenditures.
4. The Appellate Body found this measure in breach of, inter alia, Article 18.1 of the Anti-Dumping Agreement and Article 32.1 of the SCM Agreement, Appellate Body Report, United States - Continued Dumping and Subsidy Offset Act of 2000, WT/21217/AB/R, WT/DS234/AB/R, adopted 27 January 2003.
5. United States - Anti-Dumping Act of 1916 - Arbitration under Article 22.6 of the DSU, WT/DS136/ARB, 24 February 2004
6. (hereinafter US - 1916 Act (EC)(Article 22.6 - US).
7. This concept has been first expressed in the case European Communities - Regime for the Importation, Sale and Distribution of Bananas - Recourse to Arbitration by the European Communities under Article 22.6 of the DSU, WT/DS27/ARB, 9 April 1999, para. 6.3.
8. See as the latest example US - 1916 Act (EC)(Article 22.6 - US), paras 5.5 and 5.7.
9. US - Offset Act (Byrd Amendment)(EC)(Article 22.6 - US), para. 3.74.
10. Id.
11. Such as, for instance, a sanction or a rebalancing of trade benefits under the WTO Agreements, cf. A. Kotera, "On the Legal Character of Retaliation in the World Trade Organization System", in N. Ando et al. (eds), Liber Amicorum Judge Shigeru Oda (2002), p. 911 et seq;
12. R. Hudec, "Broadening the Scope of Remedies in WTO Dispute Settlement", in F. Weiss and J. Wiers (eds), Improving WTO Dispute Settlement Procedures (2000), p. 345 et seq.
13. Indeed, the arbitrators used this argument in respect of the variable level, US - Offset Act (Byrd Amendment)(EC)(Article 22.6 - US), para. 4.25. This was, of course, not very difficult as the conclusion basically confirms the award US - 1916 Act (EC)(Article 22.6 - US).
14. This is less clear under Article 4.10 of the SCM Agreement, which does not refer to the "level of nullification or impairment".
15. See, for instance, Article 5.4 of the SPS Agreement or Articles 15.7(i), 25.4(v) of the SCM Agreement.
16. US - 1916 Act (EC)(Article 22.6 - VS), para. 5.23.
17. US - 1916 Act (EC)(Article 22.6 - VS) Ibid., para. 5.32.
18. US - 1916 Act (EC)(Article 22.6 - VS) Ibid., para. 5.40 et seq.
19. United States - Section 110(5) of the US Copyright Act - Recourse to Arbitration under Article 25 of the DSU, WT/DS160/ARB25/1, 9 November 2001, para. 3.18.
20. US - 1916 Act (EC)(Article 22.6 - US), paras 5.58 et seq., 6.4 et seq.
21. Cf. US - Offset Act (Byrd Amendment)(EC)(Article 22,6 - US), para. 3.8 et seq.
22. US - Offset Act (Byrd Amendment)(EC)(Article 22.6 - US), para. 3.31 et seq.
23. Cf. US - Offset Act (Byrd Amendment)(EC)(Article 22.6 - US) Ibid., para. 3.8.
24. US - Offset Act (Byrd Amendment)(EC)(Article 22.6 - US) Ibid., para. 3.20.
25. US - Offset Act (Byrd Amendment)(EC)(Article 22.6 - US) Ibid., para. 3.30.
26. US - Offset Act (Byrd Amendment)(EC)(Article 22.6 - US) Ibid., para. 3.72.
27. US - Offset Act (Byrd Amendment)(EC)(Article 22.6 - US) Ibid., para. 3.14.
28. Cf. US - Offset Act (Byrd Amendment)(EC)(Article 22.6 - US) ibid., para. 3.95, footnote 90.
29. EC - Bananas III (US)(Article 22.6 - EC), para. 1.1.
30. European Communities - Measures Concerning Meat and Meat products (Hormones) (US) - Recourse to Arbitration by the European Communities under Article 22.6 of the DSU, WT/DS26/ARB, 12 July 1999, para. 1.
31. European Communities - Measures Concerning Meat and Meat products (Hormones) (Canada) - Recourse to Arbitration by the European Communities under Article 22.6 of the DSU, WT/DS48/ARB, 12 July 1999, para. 1.
32. EC - Bananas III (ECU)(Article 22.6 - EC), WT/DS27/ARB/ECU, 24 March 2000, para. 1.
33. US - 1916 Act (EC)(Article 22.6 - US), para. 1.2.
34. US - Offset Act (Byrd Amendment)(EC)(Article 22.6 - US), para. 1.4.
35. US - 1916 Act (EC)(Article 22.6 - US), para. 6.14 (emphasis added).
36. US - Offset Act (Byrd Amendment)(EC)(Article 22.6 - US), para. 4.20 et seq.
37. WT/DS27/49, of 9 April 1999.
38. WT/DS48/19, of 15 July 1999.
39. WT/DS26/21, of 15 July 1999.
40. WT/DS108/26, of 25 April 2003.
41. Council Regulation (EC) No. 2193/2003 of 8 December 2003, OJ L 328, p. 3, of 17 December 2003.
42. WT/DS160/13, of 11 January 2002.
43. US - 1916 Act (EC)(Article 22.6 - US), para. 5.23.
44. US - Offset Act (Byrd Amendment)(EC)(Article 22.6 - US), para. 4.10.
45. US - Offset Act (Byrd Amendment)(EC)(Article 22.6 - US) Ibid., para. 4.11.
46. US - Offset Act (Byrd Amendment)(EC)(Article 22.6 - US) Ibid., para. 4.7.
47. WTO doc. MTN.GNG/NG13/W/45. p. 5 et seq. "Compensation and Retaliation 3. Suspension of Concessions or Other Obligations Option 1. (...) However, if the party required to implement the recommendations and rulings of the CONTRACTING PARTIES considers the proposed retaliatory measure to be excessive in their trade effects, such a dispute shall be referred to binding arbitration within [30/60] days" (emphasis added).