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DISPUTE SETTLEMENT UPDATE: BANANAS, ASBESTOS & APPELLATE BODY APPOINTMENTS
WTO Members met on 5 April for a Dispute Settlement Body (DSB) session
to address, inter alia: the presentation of a status report by the EC
on the implementation of its first come-first served (FCFS) system for
the importation of bananas; the adoption of the panel and Appellate
Body (AB) reports about measures affecting asbestos and asbestos
containing products; and a statement by the Chairman regarding the
appointment of AB members.
EC-Bananas
At the meeting, the EC presented a status report on the implementation
of the adopted DSB recommendations concerning its controversial FCFS
system for the importation, sale and distribution of bananas (see
BRIDGES Weekly, 13 March 2001). At a meeting on
9 March, US Trade Representative Robert Zoellick and EC Trade
Commissioner Pascal Lamy decided to temporarily resume discussions on
the banana issue, though no progress on the bilateral talks has been
reported as yet. However, the EC Banana Management Committee must
publish the legal instrument containing the new EC regime at latest by
1 May in order to be able to implement the FCFS system by the 1 July,
which is the EC legislation deadline. According to one trade source,
the EC is more likely to postpone implementation than enter into a
demonstration of force with the US. A possible compromise could be
implementing the regime over a four-year period with a historical
reference system, which is currently being pushed by the US.
Adoption of panel and AB reports in Asbestos case
The DSB, in a quasi-automatic consensus procedure, adopted the panel
and AB reports on measures affecting asbestos and asbestos-containing
products issued in the case opposing the EC and Canada (see BRIDGES
Weekly, 13 March 2001). On the occasion, Canada and the EC made interpretative
statements concerning the reports. Inter alia, the EC underscored that
the AB ruling corroborates its opinion according to which protection of
life and health is a value of a superior order, which must come before
any other considerations. The EC added that it is now comforted in its
opinion that WTO Members are free to determine whatever level of
protection of health they see fit.
Statement by the DSB Chairman on procedure for appointing new AB members
The Chairman of the DSB, New Zealand Ambassador Roger Farrell,
announced a decision regarding the procedure of electing new members to
the AB. There are currently three outgoing members to replace. WTO
Director-General Mike Moore will send a letter to WTO Members in 17
April inviting them to present their candidates until 29 June. The
selection will start on 2 July and a decision will be taken after the
WTO's official summer holidays in August.
In related developments, Brazilian Foreign Minister Celso Lafer last
Friday rejected a Canadian offer for early talks on a dispute over
Canadian aid to aircraft maker Bombardier. This is the latest
development in the longstanding dispute opposing the two countries on
the financing of national aircraft manufacturers.
After having been brought by Canada to WTO dispute settlement and found
in violation of WTO rules several times because of its subsidy
programme PROEX, Brazil in March this year requested and obtained the
establishment of a panel to rule over Canada’s subsidies to national
Bombardier (see BRIDGES Weekly, 13 March
2001).
"Brazil rejects Canada offer on air subsidy dispute," REUTERS, 6 April
2001; ICTSD Internal Files.
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