WORLD TRADE WT/DS72/2
7November 1997
ORGANIZATION(97-4918)
Original: English
EUROPEAN COMMUNITIES -MEASURES AFFECTING
BUTTER PRODUCTS
Request fortheEstablishment ofaPanel byNewZealand
Thefollowing communication, dated 6November 1997, from thePermanent Mission of
NewZealand totheChairman oftheDispute Settlement Body, iscirculated pursuant toArticle 6.2
oftheDSU.
_______________
Myauthorities haveasked metosubmit thefollowing request onbehalf ofNewZealand for
consideration atthenextmeeting oftheDispute Settlement Body.
TheCommission oftheEuropean Communities (EC) hasdecided thatNewZealand butter
manufactured bytheAmmix butter-making process andthespreadable butter-making process isnot
"manufactured directly frommilkorcream" and,pursuant tothisdecision, hasexcluded suchbutter
fromeligibility forNewZealand 'scountry-specific tariffquota (CSTQ) established bytheEC'sWTO
Schedule (annexed toGeneral Agreement onTariff andTrade 1994(theGATT 1994)). These decisions,
andrelated actions, werecontained, though notnecessarily exclusively, inthefollowing documents:
(i) aletter (dated 25July1996) from theUnited Kingdom 'sCustoms andExcise
Department (HMC&E) toKPMG which attached correspondence between theDirector
ofDGVIoftheEuropean Commission andaDirector attheEuropean Court of
Auditors;
(ii) aletter (dated 23January 1997) fromDr.Franz Fischler, theEuropean Commissioner
forAgriculture, toDr.Lockwood Smith, theNewZealand Minister forInternational
Trade; and
(iii) aletter (dated 24January 1997) from SirLeon Brittan, theVice-President ofthe
European Commission, toDr.Lockwood Smith, theNew Zealand Minister for
International Trade.
NewZealand considers that,byreason oftheECdecisions thatNewZealand butter manufactured
bytheAmmix butter-making process andthespreadable butter-making process isnoteligible for
NewZealand 'sCSTQ anditsrelated actions, theEChasnullified orimpaired benefits accruing to
NewZealand, within themeaning ofArticle XXIII:1(a) oftheGATT 1994, asaresult ofitsfailure
tocarry outitsobligations under thefollowing provisions:
(i) Article II:1(b) oftheGATT 1994;
(ii) Article X:1oftheGATT 1994;
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Page2
(iii) Article XI:1oftheGATT 1994;
(iv) Article 2,paragraphs 2,9,11and12oftheAgreement onTechnical Barriers toTrade
(theTBTAgreement); and
(v) Article 3,paragraph 3oftheAgreement onImport Licensing Procedures (theILP
Agreement).
NewZealand alsoconsiders thatthese decisions andrelated actions haveotherwise nullified
orimpaired benefits accruing toNewZealand directly orindirectly under theMarrakesh Agreement
Establishing theWorld Trade Organization pursuant toArticle XXIII:1 (b)oftheGATT 1994.
Inacommunicationdated3April1997(WT/DS72/1),theGovernmentofNewZealandrequested
consultations withtheECpursuant toArticle 4oftheUnderstanding onRules andProcedures Governing
theSettlement ofDisputes (DSU), Article 14oftheTBTAgreement, Article 6oftheILPAgreement
andArticle XXII:1 oftheGATT 1994withregard tothedecisions bytheECthatNewZealand butter
manufactured bytheAmmix butter-making process andthespreadable butter-making process isnot
"manufactured directly from milkorcream" andwithregard toitsrelated actions inexcluding such
butter fromeligibility forNewZealand 'sCSTQ established bytheEC'sWTO Schedule. Consultations
were heldon29April 1997, butdidnotresult inaresolution ofthedispute.
Accordingly, NewZealand requests theestablishment ofapanel pursuant toArticle 6ofthe
DSU, Article 14oftheTBTAgreement, Article 6oftheILPAgreement andArticle XXIII:2 ofthe
GATT 1994toexamine thedecisions andsubsequent actions taken bytheEC,withthestandard terms
ofreference assetoutinArticle 7oftheDSU.
Asindicated above, NewZealand asksthatthisrequest fortheestablishment ofapanel be
considered atthenextmeeting oftheDispute Settlement Body.