Statement By The United States At The July 20, 2010 DSB Meeting

WTO-DSB

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.92)

• Mr. Chairman, the United States provided a status report in this dispute on July 8, 2010, in accordance with Article 21.6 of the DSU.

• As has been noted, a number of legislative proposals that would implement the DSB’s recommendations and rulings in this dispute were introduced in the First Session of the current 111th Congress. The Second Session of the 111th Congress began in January.

• The Committee on the Judiciary of the House of Representatives held a hearing on certain of these proposals on March 3, 2010. In addition, the U.S. Administration is working with Congress to implement the DSB’s recommendations and rulings in this dispute.

[Second intervention]:

• In response to the statements by some Members that this dispute raises concerns for the dispute settlement system, as the United States has noted at several previous DSB meetings, we do not believe that those concerns are well-founded. We will not repeat those points today.

• With respect to efforts to comply fully in this dispute, as the United States noted in our statement today, in March the Committee on the Judiciary of the U.S. House of Representatives held a hearing on certain proposals to implement the DSB’s recommendations and rulings in this dispute.

1. SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

B. UNITED STATES ANTI DUMPING MEASURES ON CERTAIN HOT ROLLED STEEL PRODUCTS FROM JAPAN: STATUS REPORT BY THE UNITED STATES (WT/DS184/15/ADD.92)

• The United States provided a status report in this dispute on July 8, 2010, 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 duty 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, the U.S. Administration will work with the U.S. Congress with respect to the appropriate statutory measures that would resolve this matter.

1. SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

C. UNITED STATES SECTION 110(5) OF THE US COPYRIGHT ACT: STATUS REPORT BY THE UNITED STATES (WT/DS160/24/ADD.67)

• The United States provided a status report in this dispute on July 8, 2010, 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.

1. SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

D. EUROPEAN COMMUNITIES MEASURES AFFECTING THE APPROVAL AND MARKETING OF BIOTECH PRODUCTS: STATUS REPORT BY THE EUROPEAN UNION (WT/DS291/37/ADD.30)

• The United States thanks the EU for its status report and statement today, including information on the Commission’s proposal to further streamline the EU authorization procedures.

• As the United States has explained at prior meetings, and despite the EU’s assertions today, the EU’s regulatory system governing biotech product approvals is not working as intended.

• The EU has noted in its status report that U.S. and EU officials have agreed to meet to discuss these matters and related issues. The United States looks forward to holding constructive discussions.

1. SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

E. UNITED STATES MEASURES RELATING TO ZEROING AND SUNSET REVIEWS: STATUS REPORT BY THE UNITED STATES (WT/DS322/36/ADD.10)

• Mr. Chairman, the United States provided a status report in this dispute on July 8, 2010, 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.

1. SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

F. UNITED STATES CONTINUED EXISTENCE AND APPLICATION OF ZEROING METHODOLOGY: STATUS REPORT BY THE UNITED STATES (WT/DS350/18/ADD.7)

• Mr. Chairman, the United States provided a status report in this dispute on July 8, 2010, 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. With regard to the remaining issues, the United States will continue to consult with interested parties.

1. SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

G. UNITED STATES LAWS, REGULATIONS AND METHODOLOGY FOR CALCULATING DUMPING MARGINS (“ZEROING”): STATUS REPORT BY THE UNITED STATES (WT/DS294/38/ADD.1)

• Mr. Chairman, the United States provided a status report in this dispute on July 8, 2010, 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. The United States will continue to consult with interested parties with regard to the remaining issues.

• Finally, as Members are aware, and as the U.S. has noted in previous meetings, the EU requested authorization from the DSB to suspend concessions or other obligations in this dispute, and the United States objected to the EU’s request. Therefore, pursuant to Article 22.6 of the DSU, the matter was referred to arbitration pursuant to that objection.

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, including the EU and Japan, 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.

• We therefore do not understand the purpose for which the EU and Japan have inscribed this item today.

• With respect to comments regarding further status reports in this matter, the United States fails to see what purpose would be served by further submission of status reports repeating, again, that the United States has taken all actions necessary to implement the DSB’s recommendations and rulings in these disputes.

3. UNITED STATES MEASURES AFFECTING THE PRODUCTION AND SALE OF CLOVE CIGARETTES

A. REQUEST FOR THE ESTABLISHMENT OF A PANEL BY INDONESIA (WT/DS406/2)

• Mr. Chairman, the United States has worked over a long period of time to engage constructively with Indonesia on this issue, during which time we have sought to explain the purpose of the new U.S. tobacco control law. Accordingly, the United States is disappointed that Indonesia has chosen to move forward with its request for a panel in this matter.

• We understand that a panel will likely be established today. Nevertheless, the United States continues to strongly believe that the prohibition on sales of flavored cigarettes in the Family Smoking Prevention and Tobacco Control Act is fully justified.

• The purpose of this law is to confront a public health emergency. In enacting this law, the U.S. Congress determined, among other things, that the use of tobacco products by the nation’s children is a pediatric disease, and that a scientific and medical consensus exists that tobacco products are inherently dangerous and cause cancer, heart disease, and other serious adverse health effects. This law was designed to address such threats to public health, particularly to the life and health of adolescents and children.

• Moreover, the Family Smoking Prevention and Tobacco Control Act bans sales of all clove-flavored cigarettes, wherever they are produced. Our law does not single out any country.

• Mr. Chairman, given the vital interests at stake, particularly the health and lives of U.S. children, if Indonesia persists in asking for a panel, we will certainly defend this important new public health law vigorously.

OTHER BUSINESS:

UNITED STATES – FINAL ANTI-DUMPING MEASURES ON STAINLESS STEEL FROM MEXICO (WT/DS344)

• First, the United States thanks the delegation of Mexico for providing notice to the United States of its intention to make a statement under Other Business, pursuant to Rule 6 of the DSB Rules of Procedure.

• Nevertheless, we are somewhat surprised at Mexico’s statement and request. The United States understood that we had an agreement under which we would engage in an bilateral dialogue regarding this dispute in lieu of status reports. There have been many exchanges of information between our capitals over the past year, which was useful to both parties.

• Mexico recently contacted us to request a status report. My authorities are considering that request, but it came too late for action at this meeting in any event.

• As we consider that request, we would be interested in hearing from Mexico its thinking on the dispute Mexico – Anti-Dumping Investigation of High-Fructose Corn Syrup (HFCS) from the United States (WT/DS132). It is our recollection that Mexico did not file any status reports in that dispute, and we would be interested in discussing bilaterally with Mexico its perspective on that dispute.