CHINA – ADDITIONAL DUTIES ON CERTAIN PRODUCTS FROM THE UNITED STATES, REPORT OF THE PANEL, WT/DS558/R, WTO, 16 August 2023.
TABLE OF CONTENTS
1 INTRODUCTION .
1.1 Complaint by the United States
1.2 Panel establishment and composition
1.3 Panel proceedings
1.3.1 General
1.3.2 Requests for enhanced third-party rights
1.3.3 Request for a ruling under Article 6.2 of the DSU
2 FACTUAL ASPECTS
2.1 Factual background
2.2 Measure at issue
2.3 Other additional duties
3 PARTIES' REQUESTS FOR FINDINGS AND RECOMMENDATIONS
4 ARGUMENTS OF THE PARTIES
5 ARGUMENTS OF THE THIRD PARTIES
6 INTERIM REVIEW
6.1 Compliance of the United States' panel request with Article 6.2 of the DSU
6.1.1 Paragraphs 7.17-7.30
6.2 Applicability of the relevant covered agreements
6.2.1 Paragraph 7.36 and footnote 131
6.2.2 Paragraph 7.77
6.2.3 Paragraphs 7.90-7.94
7 FINDINGS
7.1 Compliance of the United States' panel request with Article 6.2 of the DSU
7.1.1 Main arguments of the parties
7.1.1.1 China
7.1.1.2 United States
7.1.1.3 Main arguments of the third parties
7.1.1.3.1 European Union
7.1.1.3.2 Russian Federation
7.1.1.3.3 Türkiye
7.1.1.3.4 Ukraine
7.1.2 Analysis by the Panel
7.1.2.1 Introduction
7.1.2.2 Applicable legal standard
7.1.2.3 Whether the United States' claims under Articles I and II of the GATT 1994 fall outside the Panel's terms of reference
7.1.3 Conclusion
7.2 Applicability of the relevant covered agreements
7.2.1 Main arguments of the parties
7.2.1.1 United States
7.2.1.2 China
7.2.2 Analysis by the Panel
7.2.2.1 Introduction
7.2.2.2 The Panel's duty to assess the applicability of the relevant covered agreements
7.2.2.3 Order of analysis
7.2.2.4 Interpretation of Article 8.2 of the Agreement on Safeguards and Article XIX:3(a) of the GATT 1994
7.2.2.5 Whether Article 8.2 of the Agreement on Safeguards and Article XIX:3(a) of the GATT 1994 apply to China's additional duties measure .
7.2.2.5.1 Interpretation of Article 11.1(c) of the Agreement on Safeguards
7.2.2.5.2 Whether the United States' Section 232 measures are excluded from the scope of application of the Agreement on Safeguards
7.2.3 Conclusion
7.3 United States' claim under Article I:1 of the GATT 1994
7.3.1 Main arguments of the parties .
7.3.1.1 United States
7.3.1.2 China
7.3.2 Analysis by the Panel
7.3.2.1 The applicable legal standard
7.3.2.2 Whether the additional duties measure is inconsistent with Article I:1 of the GATT 1994
7.3.3 Conclusion
7.4 United States' claim under Articles II:1(a) and II:1(b) of the GATT 1994
7.4.1 Main arguments of the parties
7.4.1.1 United States
7.4.1.2 China
7.4.2 Analysis by the Panel
7.4.2.1 The applicable legal standard
7.4.2.2 Whether China's additional duties measure is inconsistent with Article II:1(b) of the GATT 1994
7.4.2.3 Whether the additional duties measure is inconsistent with Article II:1(a) of the GATT 1994
7.4.3 Conclusion
8 CONCLUSIONS AND RECOMMENDATION
1 INTRODUCTION
1.1 Complaint by the United States
1.1. On 16 July 2018, the United States requested consultations with China pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) and Article XXIII of the General Agreement on Tariffs and Trade 1994 (GATT 1994) concerning China's
imposition of additional duties on certain products originating in the United States.1
1.2. Consultations were held on 29 August 2018 but failed to resolve the dispute.
1.2 Panel establishment and composition
1.3. On 18 October 2018, the United States requested the establishment of a panel pursuant to Article 6 of the DSU with standard terms of reference.2 At its meeting on 21 November 2018, the Dispute Settlement Body (DSB) established a panel pursuant to the request of the United States in
document WT/DS558/2, in accordance with Article 6 of the DSU.3
1.4. The Panel's terms of reference are the following:
To examine, in the light of the relevant provisions of the covered agreements cited by the parties to the dispute, the matter referred to the DSB by the United States in document WT/DS558/2 and to make such findings as will assist the DSB in making the recommendations or in giving the rulings provided for in those agreements.4
1.5. On 7 January 2019, the United States requested the Director-General to determine the composition of the panel, pursuant to Article 8.7 of the DSU. On 25 January 2019, the Director-General accordingly composed the Panel as follows:
Chairperson: Mr William Ehlers
Members: Mr Cristian Espinosa Cañizares
Ms Mónica Rolong
1.6. Brazil, Canada, Egypt, the European Union, Guatemala, India, Indonesia, Japan, Kazakhstan, Mexico, New Zealand, Norway, the Russian Federation, Singapore, South Africa, Switzerland, Chinese Taipei, Thailand, Türkiye5, Ukraine, and the Bolivarian Republic of Venezuela reserved their
rights to participate in the Panel proceedings as third parties.6
1.3 Panel proceedings
1.3.1 General
1.7. The Panel held an organizational meeting with the parties on 12 March 2019.
1.8. After consulting with the parties, the Panel adopted its Working Procedures7 and partial timetable on 5 April 2019. he Panel revised its timetable several times throughout the proceedings
in consultation with the parties.8
(To be continued…)
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