EU STATEMENTS AT THE REGULAR DISPUTE SETTLEMENT MEETING OF 28 JULY 2023

AGENDA POINT 1: SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

B.    UNITED STATES – SECTION 110(5) OF THE US COPYRIGHT ACT: STATUS REPORT BY THE UNITED STATES (WT/DS160/24/ADD.215)

• We thank the United States for its status report and its statement today.

• We refer to our previous statements. We would like to resolve this case as soon as possible.

AGENDA POINT 1: SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

C.    EUROPEAN COMMUNITIES – MEASURES AFFECTING THE APPROVAL AND MARKETING OF BIOTECH PRODUCTS: STATUS REPORT BY THE EUROPEAN UNION (WT/DS291/37/ADD.178)

• We recall that the EU approval system is not covered by the DSB’s recommendations and rulings.

• The EU continues to propose for vote authorisations for genetically modified organisms that, in the European Food Safety Authority’s risk assessment, have been concluded to be safe.

• On 6 July, the Commission presented to the Appeal Committee two draft decisions authorising the placing on the market of GM maize[1]. The votes resulted in ‘no opinion’. It is now for the Commission to decide on the adoption of the draft decisions.

• On 3 July 2023, the Commission presented to the Standing Committee a draft decision authorising the placing on the market of a GM maize[2] and a decision renewing the authorision for placing on the market of a GM maize[3]. The votes resulted in ‘no opinion’. The Commission will refer the two decision to the Appeal Committee in September 2023.

AGENDA POINT 3: UNITED STATES - ANTI-DUMPING AND COUNTERVAILING DUTIES ON RIPE OLIVES FROM SPAIN

Recourse to Article 21.5 of the DSU by the European Union: request for the establishment of a panel (WT/DS577/16)

• The EU regrets that it still needs to litigate this matter despite a clear ruling in its favour adopted by the DSB and that its numerous attempts to find a solution have failed because of the lack of engagement by the United States.
• The panel report adopted by the DSB on 20 December 2021 found, among others, that Section 771B of the Tariff Act of 1930, which presumes that the entire benefit of a subsidy provided in respect of a raw agricultural product passes through to the downstream processed agricultural product, is ‘as such’ inconsistent with the ASCM.
• The EU expected the United States to fully implement the recommendations of the DSB.
• However, in light of the final determination adopted by United States on 20 December 2022, the EU disagrees with the U.S. suggestion that it has completed the implementation of the recommendations and rulings of the DSB, notably regarding the pass-through of the benefit.
• As a result, on 28 April 2023 the EU requested consultations with the US on the implementation of the pass-through finding of the DSB.
• The EU regrets that the consultations held on 24 May 2023 did not result in a resolution of the dispute.
• As a result, on 14 July 2023 the EU communicated to the chairperson of the DSB its request for the establishment of a compliance panel to rule on the implementation by the US of the pass-through finding in this case.
• The EU expects the US to cooperate with the EU and the panel in order to ensure a swift conclusion of the compliance procedure.

AGENDA POINT 4: CHINA – ANTI-DUMPING MEASURES ON STAINLESS STEEL PRODUCTS FROM JAPAN

 REPORT OF THE PANEL (WT/DS601/R and WT/DS601/Add.1)

• The EU welcomes the panel report circulated to the Members on 19 June 2023.
• As the constructive engagement in finding, through reform, a lasting solution to the current situation regarding appointments to the Appellate Body continues, the EU wishes to use this opportunity to once again thank Japan and support its decision to join the MPIA.
• The EU congratulates the parties of this dispute for securing a binding outcome. The EU welcomes the agreement of the parties on a way forward that does not entail an appeal that could be heard by the Appellate Body at the moment and would effectively amount to blocking this dispute. Such a risk would be present if the parties were not MPIA participants.

AGENDA POINT 5: DISCUSSIONS CONCERNING DS REFORM

• The European Union appreciates the opportunity to address, in the Dispute Settlement Body, the ongoing discussions on dispute settlement reform.
• For the European Union a well and fully functioning dispute settlement system in the WTO is a key priority. The EU agrees that a meaningful reform is needed in order to achieve this objective. We support a reform that preserves the core features of the dispute settlement system.
• We treat very seriously the commitment made at MC12 “to conduct discussions with the view to having a fully and well-functioning dispute settlement system accessible to all Members by 2024”.  It is with that objective in mind, and in a constructive spirit, that we have been engaging in the discussions on dispute settlement reform for more than a year now.
• We thank Marco Molina for the explanations provided today.
• While the work is challenging, the EU fully supports the ambitious schedule for the discussions, as set out by Mr Molina.  If we are to have a fully functioning dispute settlement system “by 2024”, these discussions must pave the way for agreement on dispute settlement reform at MC13.
• Finally we wish to underscore that these discussions, pursuant to the MC12 outcome document, are open to all Members, and the EU indeed appreciates the efforts to ensure that the process is transparent and inclusive. We value the broad participation in the meetings which contributes to the quality of the exchanges and enhances the understanding of the positions of Members on particular issues. We also welcome the reporting to the DSB, as it is the case today, which enhances the transparency and accountability of the process.

AGENDA POINT 6: APPELLATE BODY APPOINTMENTS

The European Union refers to its previous statements on this issue and thanks all Members that have co-sponsored the proposal to launch the appointment processes.

The European Union reiterates its resolute condemnation of the Russian Federation’s war of aggression against Ukraine and refers to its previous statement on this issue.

Re Ukraine/Russia

The European Union reiterates its resolute condemnation of the Russian Federation’s war of aggression against Ukraine and refers to its previous statement on this issue.

[1] GM maize MON 87419  and GA21 x T25

([2]) GM maize MON 89034 × 1507 × MIR162 × NK603 × DAS-40278-9 and its subcombinations

([3]) GM maize MIR162