Statements by the U.S. at the December 21, 2009 DSB Meeting

WTO-DSBGeneva,
December 21, 2009

1. SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

A. UNITED STATES SECTION 211 OMNIBUS APPROPRIATIONS ACT OF 1998: STATUS REPORT BY THE UNITED STATES (WT/DS176/11/ADD.85)

• Mr. Chairman, the United States provided a status report in this dispute on December 10, 2009, in accordance with Article 21.6 of the DSU.

• As noted in that status report, a number of legislative proposals that would implement the DSB’s recommendations and rulings in this dispute have been introduced in the current Congress, which convened in January.

• The U.S. Administration is working with Congress to implement the DSB’s recommendations and rulings.

B. UNITED STATES ANTI DUMPING MEASURES ON CERTAIN HOT ROLLED STEEL PRODUCTS FROM JAPAN: STATUS REPORT BY THE UNITED STATES (WT/DS184/15/ADD.85)

• The United States provided a status report in this dispute on December 10, 2009, in accordance with Article 21.6 of the DSU.

• As of November 23, 2002, the U.S. authorities had addressed the DSB’s recommendations and rulings with respect to the calculation of antidumping margins in the hot-rolled steel antidumping investigation at issue in this dispute. Details are provided in the document numbered WT/DS184/15/ADD.3.

• With respect to the recommendations and rulings of the DSB that were not already addressed by the U.S. authorities by November 23, 2002, the U.S. Administration will work with the U.S. Congress with respect to appropriate statutory measures that would resolve this matter.

C. UNITED STATES SECTION 110(5) OF THE US COPYRIGHT ACT: STATUS REPORT BY THE UNITED STATES (WT/DS160/24/ADD.60)

• The United States provided a status report in this dispute on December 10, 2009, in accordance with Article 21.6 of the DSU.
• The U.S. Administration will continue to confer with the European Union, and to work closely with the U.S. Congress, in order to reach a mutually satisfactory resolution of this matter

D. EUROPEAN COMMUNITIES MEASURES AFFECTING THE APPROVAL AND MARKETING OF BIOTECH PRODUCTS: STATUS REPORT BY THE EUROPEAN UNION (WT/DS291/37/ADD.23 WT/DS293/31/ADD.23)

• The United States thanks the EU for its status report and its statement today.
• The United States recalls its concerns about the large number of biotech products backed up in the EU approval system. Approximately twice as many biotech products are awaiting approval now compared to the number at the time this dispute was initiated in 2003. The EU’s failure to move forward in a timely manner on these applications for approval has the practical effect of imposing an import ban on important U.S. agricultural products.
• In the last several weeks, the EU has finally approved four varieties of biotech maize. These approvals, however, represent only a small fraction of the total backlog of pending applications.
• At this meeting, the United States would like to return to another of its serious concerns with the EU’s biotech approval process. Namely, individual EU member States continue to ban certain biotech products even after those products have received EU-wide approval.
• The United States recalls that the Dispute Settlement Body found that bans adopted by six EU member States on products approved at the EU level were in breach of the EU’s obligations under the SPS Agreement.
• Almost two years after the end of the reasonable period of time for compliance in this dispute, the EU has yet to remove these member State bans in their entirety.
• Moreover, individual EU member States have continued to adopt new bans on products approved at the EU level, despite the fact that the relevant EU scientific authorities have found these products to be safe. Moreover, most of these new bans cover the very same biotech products that were subject to the member State bans that the DSB found to be in breach of SPS obligations.
• We urge the EU and the applicable member States to take prompt steps to lift these bans on biotech products approved at the EU-level.

The United States thanks the DSB for its attention to this matter.
E. EUROPEAN COMMUNITIES REGIME FOR THE IMPORTATION, SALE AND DISTRIBUTION OF BANANAS: SECOND RECOURSE TO ARTICLE 21.5 OF THE DSU BY ECUADOR: STATUS REPORT BY THE EUROPEAN UNION (WT/DS27/96/ADD.11)

• We are very pleased that last week, the EU and various Latin American countries, including our co-complainants in this dispute, successfully completed and initialed the Geneva Agreement on Trade in Bananas.

• As you all know, at the same time the United States and the EU also initialed an agreement intended to lead to a settlement of this longstanding dispute.

• We must not forget that initialing these agreements is just a first step. There are still many steps that each country and, in particular, the EU will need to take for the agreements to be signed and fully implemented.

• These agreements have only been initialed. We understand that there are various domestic procedures that the EU needs to undertake for signing and for entry into force. The EU should keep the DSB apprised of developments. We recall that in previous meetings of the DSB, we have requested that the EU provide status reports with respect to the U.S. dispute, and we renew that request today.

• We believe that we have taken a significant step towards achieving final settlement, and we look forward to reaching that point as soon as possible.

F. UNITED STATES LAWS, REGULATIONS AND METHODOLOGY FOR CALCULATING DUMPING MARGINS (“ZEROING”): STATUS REPORT BY THE UNITED STATES (WT/DS294/34/ADD.4)

• Mr. Chairman, the United States provided a status report in this dispute on December 10, 2009, in accordance with Article 21.6 of the DSU.

• As noted in that status report, the United States has already taken a number of steps to implement the DSB’s recommendations and rulings in this dispute. With regard to the remaining issues, the United States will continue to consult with interested parties.

G. UNITED STATES MEASURES RELATING TO ZEROING AND SUNSET REVIEWS: STATUS REPORT BY THE UNITED STATES (WT/DS322/36/ADD.3)

• Mr. Chairman, the United States provided a status report in this dispute on December 10, 2009, in accordance with Article 21.6 of the DSU.

• As noted in the status report, the United States has taken steps to implement the DSB’s recommendations and rulings in this dispute. With respect to the outstanding issues, the United States will continue to consult with interested parties in order to address those issues.

[Second intervention:]

• While the United States appreciates Member concerns that compliance should be prompt, we would note that perhaps the EU is not the Member best positioned to be raising such concerns before the DSB.

H. UNITED STATES CONTINUED EXISTENCE AND APPLICATION OF ZEROING METHODOLOGY: STATUS REPORT BY THE UNITED STATES (WT/DS350/18)
• Mr. Chairman, the United States provided a status report in this dispute on December 10, 2009, in accordance with Article 21.6 of the DSU.

• As noted in that status report, the United States has taken steps to implement the DSB’s recommendations and rulings in this dispute and with regard to the remaining issues, the United States will continue to consult with interested parties.

[Second intervention:]

• We are sure that Members appreciate the difficulties that are raised for the United States by the Appellate Body findings on zeroing in this dispute and others.

• As noted, with respect to each of the four investigations found inconsistent in this dispute, the United States Trade Representative made a written request to the Secretary of Commerce to issue a determination under section 129(b) of the Uruguay Round Agreements Act not inconsistent with the recommendations and rulings of the DSB.

• The United States is still consulting with interested parties in order to address the other findings in this dispute.

2. UNITED STATES CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000: IMPLEMENTATION OF THE RECOMMENDATIONS ADOPTED BY THE DSB

A. STATEMENTS BY THE EUROPEAN UNION AND JAPAN

• As the United States has already explained at previous DSB meetings, the President signed the Deficit Reduction Act into law on February 8, 2006. That Act includes a provision repealing the Continued Dumping and Subsidy Offset Act of 2000. Thus, the United States has taken all actions necessary to implement the DSB’s recommendations and rulings in these disputes.
• We recall, furthermore, that Members have acknowledged during previous DSB meetings that the 2006 Deficit Reduction Act does not permit the distribution of duties collected on goods entered after October 1, 2007.

• With respect to comments regarding further status reports in this matter, as we have already explained at previous DSB meetings, the United States fails to see what purpose would be served by further submission of status reports repeating the progress the United States made in the implementation of the DSB’s recommendations and rulings.

3. CHINA MEASURES RELATED TO THE EXPORTATION OF VARIOUS RAW MATERIALS

A. REQUEST FOR THE ESTABLISHMENT OF A PANEL BY THE UNITED STATES (WT/DS394/7)

B. REQUEST FOR THE ESTABLISHMENT OF A PANEL BY THE EUROPEAN COMMUNITIES (WT/DS395/7)

C. REQUEST FOR THE ESTABLISHMENT OF A PANEL BY MEXICO (WT/DS398/6)

• As the United States explained at the DSB meeting on November 19, the United States is concerned about Chinese measures that restrain the exportation of certain raw materials that are critical to U.S. manufacturing industries. These restraints not only limit the availability of these raw materials, but also increase the cost of these raw materials to U.S. and other producers outside of China, while providing an artificial cost advantage to downstream industries within China.

• The materials at issue are either raw or initially processed materials that are essential inputs in the production of steel, aluminum, and industrial chemicals with far-ranging applications.

• The export restraints at issue include export quotas, export duties, minimum export pricing, various restrictions on the right to export, as well as administrative requirements that increase the burdens and costs for exporting these materials from China.

• As described in more detail in the U.S. panel request, these restraints appear to be inconsistent with provisions of the GATT 1994 and China’s Protocol of Accession.

• At last month’s meeting, China mentioned the dialogue between the United States and China on this issue. We, too, regret that significant U.S. engagement over many years has not resulted in the lifting of the Chinese measures restricting the export of the raw materials at issue.

• Accordingly, the United States again requests that the DSB establish a panel to examine the matter set out in our panel request with standard terms of reference.

• The United States further requests, pursuant to DSU Article 9.1, that a single panel be established to examine the complaints of the United States, the EU, and Mexico.
4. UNITED STATES MEASURES AFFECTING IMPORTS OF CERTAIN PASSENGER VEHICLE AND LIGHT TRUCK TYRES FROM CHINA

A. REQUEST FOR THE ESTABLISHMENT OF A PANEL BY CHINA (WT/DS399/2)

• Mr. Chairman, the United States is disappointed that China has chosen to move forward with its request for panel establishment.

• We are confident that our measure is consistent with our WTO obligations and, specifically, with the product-specific safeguard mechanism provided for in section 16 of China’s Protocol of Accession.

• The United States is not in a position to agree to the establishment of a panel at this time.

5. PHILIPPINES TAXES ON DISTILLED SPIRITS

A. REQUEST FOR THE ESTABLISHMENT OF A PANEL BY THE EUROPEAN UNION (WT/DS396/4)
• The United States has been closely following this issue and will continue to do so.

• We participated in the consultations that were held between the EU and the Philippines in this dispute are concerned about the Philippines’ excise tax system and its effect on market access for our exports of distilled spirits.

• We urge the Philippines to address the concerns that have been raised, and hope that the Philippines takes action soon to resolve this issue.

OTHER BUSINESS: UNITED STATES – SUBSIDIES ON UPLAND COTTON (WT/DS267)

• The United States takes note of Brazil’s statement and will refer it to authorities in capital

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